2022/23 Tax Rates table available to download here

Download now
Income Tax
Income tax
2019/202018/19
Starting rate for savings only income 0%£5,000£5,000
Dividend Allowance 0%£2,000£2,000
Basic rate 20% (7.5% for dividends above £5,000)£37,500£34,500
Higher rate 40% (32.5% for dividends)£37,501 – £150,000£34,501 – £150,000
Additional rate 45% (38.1% for dividends)£150,001+£150,001+
Personal savings allowance – 0% for basic rate tax payers on £1000, £500 for higher rate tax payers.20%, 40% and 45%20%, 40% and 45%
Personal Allowances
Personal Allowances
2019/202018/19
Everyone£12,500*£11,850*
No longer a higher rate for older tax payers
*Reduced by £1 for every £2 above income limit, but will not reduce below basic Personal Allowance unless income over £100,000
Pensions
Pensions
Annual allowance100% of net relevant earnings or £3,600 if higher
Capped at:£40,0002019/20
Note:  Ability to utilise unused annual allowances of up to £40,000 for 2019, 2018 and 2017 if member of defined benefit or contribution scheme in previous 3 years.  Amount is tapered if adjusted annual income exceeds £150,000.  Money purchase annual allowance (if in draw down) £4,000.
Lifetime limit£1.055 million
Amounts exceeding lifetime limit taxed at 55% if extracted as a lump sum, or 25% if not
Inheritance Tax
Inheritance Tax
Exempt transfers:
  • Gifts to UK domiciled spouse*
  • Gifts to charity*
  • Overseas domiciled spouse up to £325,000*
  • Annual exemption £3,000*
  • Small gifts £250*
  • Wedding gifts – £5000 child, £2500 grandchild or remoter issue, £1000 other*
  • Non UK assets held by a non domiciled individual* *To be confirmed
Nil rate band:£325,000 (18/19 £325,000)
Rate of tax at death40%*
*36% where 10% of estate left to charity
Residence Nil Rate band £150,000 (previously £125,000)
Lifetime tax rate20%
No tax on transfers to individuals unless death within 7 years
Reduced tax charge on gifts made when death is within 7 years
Years:0-33-44-55-66-7
% taxable10080604020
Capital Gains Tax
Capital Gains Tax
2019/202018/19
Individual Exemption£12,000£11,700
Chattels Exemption£6,000£6,000
Trusts exemption£6,000£5,850
Transfers between husband and wife living together are exempt.
Main Rate20%^20%
Basic Rate10%^10%
Entrepreneurs Rate*10%10%
* Available on first £10 million of eligible gains in lifetime ^ Does not apply to residential property which remains at 28% and 18%
Corporation Tax
Corporation Tax
Year commencing1 April 20191 April 2020
 19%  19%
Main Capital Allowances
Main Capital Allowances
Motor cars (based on CO2 emissions)
Less than 75g/km CO2100%
75-130g/km CO2 18% rb
More than 130g/km CO28% rb
Plant & Machinery *18% rb
Computer Equipment * 18% of rb
Integral features –6% rb
Goodwill –4% on certain unconnected party transactions only
 Structures and Buildings Allowance (SBA) 2% sl
*Annual Investment Allowance – 100% allowance on certain capital expenditure up to £200,000 from January 2016, increasing to £1 million from 1st January 2019 rb = reducing balance   sl = straight line basis
Value Added Tax
Value Added Tax
Standard Rate
From 1st January 201720.00%
VAT fraction
From 1st January 20171/6
Turnover registration limit£85,000
Turnover deregistration limit£83,000
Cash/annual accounting registration limit£1.35m excl. VAT
Cash/annual accounting£1.6m excl. VAT
Flat rate scheme income£150,000 excl. VAT
Flat rate scheme income deregistration limit£230,000 incl. VAT
VAT Scale Charge: Now based upon the CO2 Emissions of the vehicle concerned
NI Contributions
NI Contributions
2019/20
Class 1EmployerEmployee
Weekly earnings% of all earnings
£0 – £118NILNIL
£118 – £1660.00%0%
£167 – £96213.80%12%
Over £96213.80%2%
The above rates apply to those not contracted out of S2P.
Class 1AEmployer13.80%
Class 2*S/Employed£3 pw
Class 3Voluntary£15 pw
Class 4S/Employed
£0 – £8,6320%
£8,633 – £50,0009%
Over £50,0002%
* Payable on net earnings over £6,365 (18/19 £6,025)
Vehicle Benefits
Vehicle Benefits
Chargeable on all directors and employees
Car Benefit*: This is now calculated as a percentage of the original list price of the vehicle.
Car Fuel Benefit*: This is now calculated as a percentage of a fixed sum of £24,100
* Percentage used will be dependent on the level of CO2 vehicle emissions
Van benefit per vehicle: £3,430 if there is any private use.  Travel between home and work is not considered private use
Van Fuel Benefit: £655
Mileage Allowances
Mileage Allowances
The maximum tax-free mileage allowances for employees using their own cars for business are as follows:
2019/20First 10,000 Miles10,000+ miles
Car & Van45p*25p*
Motorcycle24p*24p*
Bicycle20p*20p*
Notes: 1 Payments in excess of approved rates are taxable 2 Where payments are made at rates less than the approved rates, employees can claim tax relief on shortfall
*To be confirmed
Stamp Duty Land Tax
Stamp Duty Land Tax
Residential Properties Residential Properties where you are NOT a first-time buyer** SDLT is charged at the following rates for each portion of the purchase price.
Property purchase priceSDLT rate
Up to £125,0000%
The next £125,000 (the portion from £125,001 to £250,000)2%
The next £675,000 (the portion from £250,001 to £925,000)5%
The next £575,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%

SDLT is charged at a flat rate of 15% on residential properties costing more than £500,000 purchased by certain corporate bodies NOTE – Add 3% to the above rates where it is an additional property. ** First time buyers (including those with shared ownership from 22nd Nov 2017) pay 0% on the first £300,000, 5% between £300,000 and £500,000.  Property worth more than this is subject to normal SDLT rates above

Non-Residential or Mixed Use Property
Non-Residential or Mixed Use Property
SDLT is charged at the following rates for each portion of the purchase price.
Property purchase priceSDLT rate
Up to £150,0000%
The next £150,001 (the portion from £150,001 to £250,000)2%
Above £250,0005%
Leases
Leases
SDLT is charged at the following rates for each portion of the purchase price.
Net Present Value (NPV) of the leaseSDLT rate
Up to £150,0000%
The next £4,850,000 (the portion from £150,001 to £5,000,000)1%
Above £5 million2%
Annual Tax on Enveloped Dwellings (ATED)
Annual Tax on Enveloped Dwellings (ATED) ATED may be payable annually on UK residential properties owned partly or wholly by certain corporate bodies, at the following rates:
Property value2019/202018/2019
Less than £500,0000 0
£500,000 to £1 million£3,650£3,600
Between £1 million and £2 million£7,400£7,250
Between £2 million and £5 million£24,800£24,250
Between £5 million and £10 million£57,900£56,550
Between £10 million and £20 million£116,100£113,400
More than £20 million£232,350£226,950

Do you think you are paying too much tax?

Find out more