2022/23 Tax Rates table available to download here

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Income tax
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
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
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
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
% taxable10080604020
Capital Gains Tax
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
Year commencing1 April 20191 April 2020
 19%  19%
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
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
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
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
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*
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
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
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%
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) 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

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