Based on Budget and other fiscal announcements to 17 November 2022
For more information on tax rates and other tax facts, please click on the links below or download the tax facts PDF.
- Income tax rates
- Income tax allowances
- Pension contributions
- Capital gains tax
- Inheritance tax
- Non domiciled remittance basis users
- National insurance contributions
- Individual savings accounts
- Tax efficient savings and investments
- Stamp duty
- Property stamp taxes
- Annual tax on enveloped dwellings
- Residential property developer tax
- Energy profits levy and electricity generator levy
- Corporation tax and diverted profits tax
- Patent box
- Research and development tax relief
- Land remediation tax relief
- Creative sector tax reliefs
- Capital allowances
- Value added tax
- Digital services tax
- Authorised mileage rates
- Car and fuel scale benefits
A Rate on non dividend savings income up to £5,000 is 0% where taxable non savings income does not exceed £5,000.
B A dividend allowance effectively taxes the first £2,000 (reducing to £1,000 from 6 April 2023 and £500 from 6 April 2024) of dividends received by individuals at 0%. Dividends above this limit are taxed at 8.75% (2021/22: 7.5%) for basic and standard rate taxpayers, 33.75% (2021/22: 32.5%) for higher rate taxpayers and 39.35% (2021/22: 38.1%) for additional and trust rate taxpayers.
C Scottish income tax and rate bands apply to earned, pensions and property income of Scottish taxpayers. UK income tax rates and bands apply for other income, including savings and dividend income of Scottish taxpayers.
D Basic rate band increased by gross Gift Aid donations and certain personal pension contributions.
E The Welsh government has the right to set the Welsh rate of income tax that applies to earned, pension and property income of Welsh taxpayers in addition to the UK rates after reducing those rates by 10%. The Welsh government set the Welsh rate of income tax at 10% for 2021/22, leaving the combined UK plus Welsh rates the same as those applying in England and Northern Ireland. The Welsh government set the Welsh rate of income tax at 10% for 2022/23 (2021/22: 10%), leaving the combined UK plus Welsh rates the same as those applying in England and Northern Ireland.
F The additional rate threshold will reduce to £125,140 from 6 April 2023.
A Reduced by £1 for every £2 of income over £100,000.
B Non UK residents may not be entitled to personal allowances in certain circumstances.
C Available to persons born before 6 April 1935. Relief limited to 10%. Reduced to minimum allowance by £1 for every £2 over income limit.
D £500 for UK higher rate taxpayers and £nil for UK additional rate taxpayers.
E If gross income in excess of £1,000, a deduction of £1,000 instead of actual expenses is permitted.
High income child benefit charge: 1% of the benefit per £100 of adjusted net income over £50,000: 100% of the benefit when adjusted net income is over £60,000.
A A Up to the lower of 100% of earnings or the maximum contribution. Maximum contribution is the annual allowance plus unutilised allowances from the three previous tax years. Up to £3,600 may be contributed irrespective of earnings. Annual allowance reduced: by £1 for every £2 income over £240,000 to a minimum of £4,000; and, to £4,000 maximum if certain pension drawings made.
A Reducing to £6,000 from 6 April 2023 and £3,000 from 6 April 2024.
B Reducing to £3,000 from 6 April 2023 and £1,500 from 6 April 2024.
C Gains on carried interest and chargeable residential property - 8% surcharge.
Non UK residents subject to capital gains tax (or corporation tax for companies) on sale of UK property and certain disposals of interests in UK property rich entities.
Certain disposals of UK land and buildings by non UK residents and disposals of residential property by UK residents must be reported and the tax paid to HMRC within 60 days of sale (30 days for disposals completed prior to 27 October 2021).
A Additional residence nil rate band (RNRB) of £175,000 for transfers of a main residence to direct descendants. NRB and RNRB for estate of surviving spouse are increased by unutilised percentage of NRB and RNRB of predeceased spouse. RNRB tapers away for estates over £2m.
B Some lifetime gifts are taxed at 20%.
C Tax rate reduced to 36% where 10% or more of net chargeable estate is left to charity.
Certain returning former UK domiciled individuals, and non domiciled individuals who have been resident in the UK in at least 15 of the previous 20 tax years, are treated as if UK domiciled for income tax, capital gains tax and inheritance tax purposes.
A 15.05% between 6 April 2022 and 5 November 2022. 14.53% on earnings of company directors at any time in the 2022/23 tax year.
B For Class 1A amounts relating to sporting testimonial cash payments and termination awards, 15.05% to 5 November 2022, 13.8% on or after 6 November 2022.
C 13.25% between 6 April 2022 and 5 November 2022. 12.73% on earnings of company directors at any time in the 2022/23 tax year.
D 3.25% between 6 April 2022 and 5 November 2022. 2.73% on earnings of company directors at any time in the 2022/23 tax year.
The first £5,000 of employer's liability relieved by the employment allowance for employers with a NICs bill of less than £100,000.
No employers NICs for employees aged under 21 (and apprentices up to age 25) on earnings up to £967 per week (the upper earnings limit), or for new employees in freeport tax sites on earnings up to £481 per week (the freeport upper secondary threshold).
Apprenticeship Levy at 0.5% payable on annual pay bills in excess of £3m, net of £15,000 annual allowance.
|INDIVIDUAL SAVINGS ACCOUNTS|
|Maximum annual investment||2022/23||2021/22|
|Cash and shares combined limit||£20,000||£20,000|
Help To Buy ISA - scheme closed to new accounts from 30 November 2019. Deposits of up to £200 per month eligible for existing accounts.
The lifetime ISA allowance counts towards the maximum cash and shares combined ISA limit.
A Income tax relief at 50%.
B Income tax relief at 30%.
C Up to £2m for 'knowledge-intensive' companies.
D Capital gains tax deferral on gains reinvested in EIS qualifying investments.
E Capital gains tax exemption on 50% of gains reinvested in SEIS qualifying investments.
F Increasing to £200,000 from 6 April 2023
|Consideration on shares over £1,000||0.5%|
A Prior to 23 September 2022 and after 31 March 2025, a 2% SDLT rate band applies to consideration for residential properties between £125,001 and £250,000.
B Prior to 10 October 2022, a 3.5% LTT rate applied to consideration for residential properties between £180,001 and £250,000.
C Prior to 10 October 2022, a 5% LTT rate applied to consideration for residential properties between £250,001 and £400,000.
First-time buyers are exempt from SDLT for purchases up to £425,000 (£300,000 prior to 23 September 2023 and after 31 March 2025) and for the first £425,000 of purchases up to £625,000 (the first £300,000 of purchases up to £500,000 prior to 23 September 2023 and after 31 March 2025).
3% (SDLT) and 4% (LBTT and LTT) supplements apply to above rates for second residential properties purchased by individuals and all purchases by corporates, discretionary and certain other trustees with chargeable consideration of £40,000 or more.
2% SDLT surcharge applies on residential properties acquired by non UK residents.
15% flat rate SDLT applies to non natural persons purchasing residential properties (enveloped properties) for more than £500,000 unless relief is available.
England and Northern Ireland - 1% on present value of rents above £250,000 (£125,000 to 23 September 2022), generally exempt in Scotland and nil in Wales.
|Non residential/mixed use||England & NI||Scotland||Wales|
|£0 - £150,000||Nil||Nil||Nil|
|£150,001 - £225,000||2%||1%||Nil|
|£225,001 - £250,000||2%||1%||1%|
|£250,001 - £1m||5%||5%||5%|
Non residential/mixed leases
England and Northern Ireland - 1% on present value of rents £150,001 to £5m, 2% above £5m.
Scotland - 1% on present value of rents £150,001 to £2m, 2% above £2m.
Wales - 1% on present value of rents £225,001 to £2m, 2% above £2m.
Qualifying purchases in freeport tax sites eligible for full relief from SDLT.
|ANNUAL TAX ON ENVELOPED DWELLINGS|
|Residential property value||2022/23||2020/21|
|£500,001 - £1m||£3,800||£3,700|
|£1m - £2m||£7,700||£7,500|
|£2m - £5m||£26,050||£25,300|
|£5m - £10m||£60,900||£59,100|
|£10m - £20m||£122,250||£118,600|
|RESIDENTIAL PROPERTY DEVELOPER TAX|
Applies to relevant company profits derived from UK residential property development.
|ENERGY PROFITS LEVY AND ELECTRICITY GENERATOR LEVY|
|Energy profits levy||35%||N/A||A, B|
|Electricity generator levy||45%||N/A||C|
A 25% prior to 1 January 2023.
B Applies from 26 May 2022 to 31 March 2028 to relevant UK profits of oil and gas producers.
C Applies from 1 January 2023 to relevant UK profits of low-carbon electricity generators.
|CORPORATION TAX AND DIVERTED PROFITS TAX|
|Loans to participators||33.75%||32.5%|
|Restitution interest payments
corporation tax rate
|Diverted profits tax||25%||25%||C, D|
A Increasing to 25% from 1 April 2023, with 19% small profits rate for profits below £50,000 and marginal relief for profits to £250,000 (thresholds reduced for associated companies).
B Withheld at source.
C Applies to profits of large entities diverted from the UK as a result of an avoided permanent establishment or transactions that lack economic substance.
D Increasing to 31% from 1 April 2023
|Effective rate of tax on qualifying profits||10%||10%||A|
|RESEARCH AND DEVELOPMENT TAX RELIEF|
|SME enhanced deduction scheme||130%||130%||A, D|
|SME cash credit for R&D loss surrendered||14.5%||14.5%||B, E|
|Large company R&D expenditure credit||13%||13%||C, F|
A Additional (enhanced) tax deduction available for qualifying R&D expenditure.
B Payable R&D tax credit in any tax year in excess of £20,000 is restricted to three times the total relevant PAYE income tax and NICs liability for the year.
C Taxable credit available on qualifying R&D expenditure.
D Decreasing to 86% from 1 April 2023.
E Decreasing to 10% from 1 April 2023.
F Increasing to 20% from 1 April 2023.
|LAND REMEDIATION TAX RELIEF|
|Additional tax deduction||50%||50%|
|Payable tax credit on surrenderable loss||16%||16%|
|CREATIVE SECTOR TAX RELIEFS|
|Payable credit rates||2022/23||2021/22||Note|
|Film tax relief||25%||25%||A|
|High end television tax relief||25%||25%||A|
|Video games tax relief||25%||25%||A|
|Theatre tax relief||50%||25%||A, B,C|
|Orchestra tax relief||50%||25%||A, B|
|Museums and galleries exhibition tax relief||50%||25%||A, B, C|
A Eligible expenditure qualifies for enhanced deductions. Rates quoted refer to payable tax credits for any resulting surrenderable losses.
B 2022/23 rates apply for expenditure between 27 October 2021 and 31 March 2023. Above rates scheduled to reduce to 35% for 2023/24 and to 25% for 2024/25, other than museums and galleries exhibition tax relief, which is currently due to end on 31 March 2024.
C Payable credits reduced by 5% for non-touring productions in all tax years.
A Allowance of 130% for companies on cost of most new plant and machinery that ordinarily qualifies for 18% main rate writing down allowances until 31 March 2023.
B Allowance of 50% for companies on cost of most new plant and machinery that ordinarily qualifies for 6% special rate writing down allowances until 31 March 2023.
C Maximum annual investment allowance £1m pa.
D Reducing balance.
E Available for: research and development (no time limit); enterprise zone (assisted areas) until designated dates between 31 March 2021 and 16 March 2024; brand new low emission cars and gas refuelling stations until 31 March 2025; zero-emission goods vehicles until 31 March 2025/5 April 2025; and electric vehicle charge points until 31 March 2025/5 April 2025.
F Available on qualifying assets brought into use on or after the date the relevant freeport tax site is designated and before 30 September 2026.
G New and unused cars only. Allowances for second hand cars are 18% reducing balance.
H Expenditure on non residential structures and buildings on construction contracts entered into on or after 29 October 2018.
I Available for structures and buildings in freeport tax sites for contracts entered into on or after the freeport is designated.
|VALUE ADDED TAX|
|Annual turnover limit for registration||£85,000||£85,000||B|
|Annual cash accounting upper limit||£1,350,000||£1,350,000|
|EC sales list reporting threshold||Nil||Nil||C|
|Arrivals threshold||£500,000||£1,500,000||D, E|
A Temporary reduced rate for hospitality and tourism sector - 5% from 15 July 2020 to 30 September 2021 and interim rate of 12.5% from 1 October 2021 to 31 March 2022, returning to standard rate from 1 April 2022.
B Taxable turnover is measured by reference to the last 12 months or next 30 days.
C From 1 January 2021, EC sales lists are no longer required for goods exported from Great Britain and services supplied to EU businesses, but are still required for goods supplied from Northern Ireland to EU VAT registered customers. Simplified annual EC sales lists can be used where: annual taxable turnover does not exceed £110,500; goods supplied annually from Northern Ireland to EU VAT registered customers do not exceed £11,000; and, sales do not include new means of transport.
D From 1 January 2021, Intrastat declarations are no longer required for goods exported from Great Britain to the EU, but are still required for goods imported from the EU into Great Britain until 31 December 2021 and for goods moving between Northern Ireland and the EU.
E The intrastat reporting arrivals threshold was reduced to £500,000 from 1 January 2022.
|AUTHORISED MILEAGE RATES|
|Private cars and vans||First 10,000 miles in the tax year||45p|
|Each qualifying passenger||5p|
The authorised mileage rates for private cars and vans above are for income tax purposes only. The authorised rate for NICs purposes is 45p per mile regardless of annual mileage.
A From 6 April 2023, car and van fuel benefit charges and van benefit charge will increase in line with CPI.
B On 6 April 2025, 6 April 2026, and 6 April 2027, benefit charge percentages for all cars will be increased by 1%, subject to a maximum of 5% for electric cars with a range in excess of 130 miles, 21% for cars with CO2 emissions below 50g/km and 37% for all other cars.
Diesel vehicles meeting the RDE2 standard are exempt from diesel supplement and the above other fuel rates apply for such vehicles.