Huddersfield (RegisteredOffice): Bank Chambers, Market Street, Huddersfield HD1 2EW 01484 534431 Leeds: 7 Park Row, Leeds LS1 5HD 0113 5212515 simpson-wood.co.uk Tax Tables 2022/23
INCOME TAX 22/23 21/22 Main personal allowances and reliefs Personal allowance* £12,570 £12,570 Marriage/civil partner’s transferable allowance £1,260 £1,260 Married couple’s/civil partner’s allowance at 10%† – max £9,415 £9,125 (if at least one born before 6/4/35) – min £3,640 £3,530 Blind person’s allowance £2,600 £2,520 Rent-a-room relief £7,500 £7,500 Property allowance £1,000 £1,000 Trading allowance £1,000 £1,000 *Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000 †Married couple’s/civil partner’s allowance reduced by £1 for every £2 of adjusted net income over £31,400 (£30,400 for 21/22), until minimum reached UK taxpayers excluding Scottish taxpayers’ non-dividend, non-savings income 20% basic rate on first slice of taxable income up to £37,700 £37,700 40% higher rate on next slice of taxable income over £37,700 £37,700 45% additional rate on taxable income over £150,000 £150,000 Scottish taxpayers – non-dividend, non-savings income 19% starter rate on taxable income up to £2,162 £2,097 20% basic rate on next slice up to £13,118 £12,726 21% intermediate rate on next slice up to £31,092 £31,092 41% higher rate on next slice up to £150,000 £150,000 46% top rate on income over £150,000 £150,000 All UK taxpayers Starting rate at 0% on band of savings income up to** £5,000 £5,000 Personal savings allowance at 0%: Basic rate £1,000 £1,000 Higher rate £500 £500 Additional rate £0 £0 Dividend allowance at 0%: All individuals £2,000 £2,000 Tax rates on dividend income: Basic rate 8.75% 7.5% Higher rate 33.75% 32.5% Additional rate 39.35% 38.1% Trusts: Standard rate band generally £1,000 £1,000 Rate applicable to trusts: Dividends 39.35% 38.1% Other income 45% 45% **Not available if taxable non-savings income exceeds the starting rate band High Income Child Benefit Charge 1% of benefit per £100 of adjusted net income between £50,000 – £60,000 Non-domicile remittance basis charge after UK residence in at least: 7 of the last 9 tax years £30,000 £30,000 12 of the last 14 tax years £60,000 £60,000
STATE PENSIONS Annual Weekly New state pension £9,627.80 £185.15 Basic state pension – single person* £7,376.20 £141.85 Basic state pension – spouse/civil partner* £4,420.00 £85.00 *State pension age reached before 6/4/16 REGISTERED PENSIONS 22/23 21/22 Lifetime allowance £1,073,100 £1,073,100 Money purchase annual allowance £4,000 £4,000 Annual allowance* £40,000 £40,000 Annual allowance charge on excess is at applicable tax rate(s) on earnings Lifetime allowance charge if excess is drawn as cash 55%; as income 25% Pension commencement lump sum up to 25% of pension benefit value *Reduced by £1 for every £2 of adjusted income over £240,000 to a minimum of £4,000, subject to threshold income being over £200,000 TAX INCENTIVISED INVESTMENT 22/23 21/22 Total Individual Savings Account (ISA) limit, excluding Junior ISAs (JISAs) £20,000 £20,000 Lifetime ISA £4,000 £4,000 JISA and Child Trust Fund £9,000 £9,000 Venture Capital Trust (VCT) at 30% £200,000 £200,000 Enterprise Investment Scheme (EIS) at 30%* £2,000,000 £2,000,000 EIS eligible for CGT deferral relief No limit No limit Seed Enterprise Investment Scheme (SEIS) at 50% £100,000 £100,000 SEIS CGT reinvestment relief 50% 50% *Above £1,000,000 investment must be in knowledge-intensive companies CAPITAL GAINS TAX 22/23 21/22 Tax Rates – Individuals Below UK higher rate income tax band 10% 10% Within UK higher and additional rate income tax bands 20% 20% Tax Rate – Trusts and Estates 20% 20% Surcharge for residential property and carried interest 8% 8% Exemptions Annual exempt amount: Individuals, estates, etc. £12,300 £12,300 Trusts generally £6,150 £6,150 Chattels gain limited to 5⁄3rds of proceeds exceeding £6,000 £6,000 Business Asset Disposal Relief 10% on lifetime limit of £1,000,000 For trading businesses and companies (minimum 5% participation) held for at least 2 years
CORPORATION TAX Profits Diverted profits Years to 31/3/23 and 31/3/22 19% 25% Made in 21/22 Made in 22/23 Loans to participators 32.5% 33.75% NATIONAL INSURANCE CONTRIBUTIONS Class 1 Employee – Primary Employer – Secondary* 6/4/22–5/7/22 £190-£967 pw: 12.00% Over £175 pw: 13.80% Over £967 pw: 2.00% 6/7/22–5/11/22 £242-£967 pw: 13.25% Over £175 pw: 15.05% Over £967 pw: 3.25% 6/11/22–5/4/23 £242-£967 pw: 12.00% Over £175 pw: 13.80% Over £967 pw: 2.00% Director – Primary Director – Secondary* 2022/23 £11,908-£50,270 pa: 12.73% Over £9,100 pa: 14.53% Over £50,270 pa: 2.73% *No employer NICs on the first £967pw for employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment. No employer NICs on the first £481pw for employees at freeports in Great Britain in the first three years of employment starting from 6 April 2022 Employment Allowance £5,000 Per business – not available if sole employee is a director or employer’s NICs for 21/22 £100,000 or more. Class 1A Employer On car and fuel benefits and most other taxable benefits provided to employees/directors (pa) 14.53% Class 2 Self-employed Flat rate per week £3.15 (£163.80 pa) Small profits threshold £6,725 Class 4 Self-employed On annual profits of £11,908 to £50,270: 9.73% Over £50,270: 2.73% Class 3 Voluntary flat rate per week £15.85 (£824.20 pa) CAR BENEFITS Taxable amount based on original list price and CO2 emissions in g/km. Zero emission cars 2% Petrol and diesel hybrids with CO2 emissions 1–50g/km Range – electric-only miles <30 30–39 40–69 70–129 130+ 14% 12% 8% 5% 2% All non-diesel cars over 50g/km CO2 51–54 55 & over 15% 16%*–37% * Increased for every extra 5g/km by 1% up to the maximum 37% Diesels not meeting RDE2: add 4% to non-diesel rates, up to max of 37% Fuel Benefit – taxable amount for private use 22/23 21/22 CO2 % charge used for car benefit multiplied by £25,300 £24,600 VANS – FOR PRIVATE USE 22/23 21/22 Zero emission: chargeable amount Nil Nil Other vans: chargeable amount £3,600 £3,500 Fuel: chargeable amount £688 £669
STAMP DUTIES AND PROPERTY TRANSACTION TAXES Stamp Duty and SDRT: Stocks and marketable securities 0.5% Additional residential and all corporate residential properties £40,000 or more – add 3% to SDLT rates and 4% to LBTT and LTT rates England & N Ireland – Stamp Duty Land Tax (SDLT) on slices of value Residential property % Commercial property† % Up to £250,000* 0 Up to £150,000 0 £250,001–£925,000 5 £150,001–£250,000 2 £925,001–£1,500,000 10 Over £250,000 5 Over £1,500,000 12 First time buyers: 0% on first £425,000* for properties up to £625,000* Non-resident purchasers: 2% surcharge on properties £40,000 or more Residential property bought by companies etc. over £500,000: 15% of total consideration, subject to certain exemptions *Figures applicable from 23 September 2022 †0% for freeport qualifying property in England only Scotland – Land and Buildings Transaction Tax (LBTT) on slices of value Residential property % Commercial property % Up to £145,000 0 Up to £150,000 0 £145,001–£250,000 2 £150,001–£250,000 1 £250,001–£325,000 5 Over £250,000 5 £325,001–£750,000 10 Over £750,000 12 First time buyers: 0% on the first £175,000 Wales – Land Transaction Tax (LTT) on slices of value Residential property % Commercial property % Up to £225,000* 0 Up to £225,000 0 £225,001–£400,000* 6* £225,001–£250,000 1 £400,001–£750,000 7.5 £250,001–£1,000,000 5 £750,001–£1,500,000 10 Over £1,000,000 6 Over £1,500,000 12 *Figures applicable from 10 October 2022 INHERITANCE TAX 22/23 21/22 Nil-rate band* £325,000 £325,000 Residence nil-rate band*† £175,000 £175,000 Rate of tax on excess 40% 40% Rate if at least 10% of net estate left to charity 36% 36% Lifetime transfers to and from certain trusts 20% 20% Overseas domiciled spouse/civil partner exemption £325,000 £325,000 100% relief: businesses, unlisted/AIM companies, certain farmland/buildings 50% relief: certain other business assets e.g. farmland let before 1/9/95 Annual exempt gifts of: £3,000 per donor £250 per donee *Up to 100% of the unused proportion of a deceased spouse’s/civil partner’s nil-rate band and/or residence nil-rate band can be claimed on the survivor’s death †Estates over £2,000,000: the value of the residence nil-rate band is reduced by 50% of the excess over £2,000,000
MAIN CAPITAL AND OTHER ALLOWANCES Plant & machinery (P&M) 100% annual investment allowance (1st year): £1,000,000 P&M* super-deduction first year allowance (FYA) for companies to 31/3/23 130% Special rate P&M* FYA for companies to 31/3/23 50% Plant & machinery** 18% Patent rights and know-how** 25% Special rate P&M e.g. long-life assets and integral features of buildings** 6% Structures and buildings (straight line)† 3% Electric charge points 100% Motor Cars CO2 emissions of g/km: 0* 1–50 Over 50 Capital allowance 100% first year 18% pa** 6% pa** *New and unused only **Annual reducing balance †10% for freeport sites in Great Britain Research and development (R&D) – capital expenditure 100% R&D revenue expenditure relief – small/medium-sized companies 230% R&D expenditure credit – large companies 13% VALUE ADDED TAX Standard rate 20% Domestic fuel 5% Installation of energy saving materials (except Northern Ireland) 0% Since 1/4/17: Registration level £85,000 Deregistration £83,000 Flat rate scheme turnover limit £150,000 Cash and annual accounting schemes turnover limit £1,350,000 MAIN DUE DATES FOR TAX PAYMENT Income Tax, NICs and Capital Gains Tax – Self-assessment 31 January in tax year Normally 50% of previous year’s income tax, Following 31 July (less tax deducted at source) and class 4 NICs Following 31 January Balance of income tax and class 4 NICs, CGT and all class 2 NICs Inheritance Tax on death: Normally 6 months after end of month of death Lifetime transfer 6 April–30 September: 30 April in following year Lifetime transfer 1 October–5 April: 6 months after month of transfer Corporation Tax – Self-assessment • Profits under £1,500,000: 9 months + 1 day after end of accounting period • Profits £1,500,000 or over: normally payable in 7th, 10th, 13th and 16th months after start of the accounting period • Profits £20,000,000 or over: normally payable in 3rd, 6th, 9th and 12th months after start of the accounting period • Growing companies: no instalments where profits are £10,000,000 or less and the company was not a large company for the previous year } © Copyright 17 October 2022 Subject to relevant legislation For information only Always seek professional advice before acting
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