Tax Tables

Inheritance Tax

Inheritance Tax		2022-23		2021-22
Nil rate band for individuals*		£325,000		£325,000
Thereafter – lifetime gifts**		20%		20%
– lower rate on death***		36%		36%
– on death		40%		40%
Residence nil rate band****		£175,000		£150,000
* Unused nil rate band can be used by surviving spouse or civil partner. This band is currently frozen until April 2021. ** Increased to 40%, subject to tapering relief, on gifts made between 3 and 7 years pre death. Certain lifetime gifts are exempt. Special rules for business property. *** A lower rate applies where 10% or more of the net estate is left to charity.
**** A new inheritance tax main residence nil-rate band (MRNRB) will be introduced from April 2017. The MRNRB will eventually allow for a £175,000 per person transferable allowance for married couples and civil partners when their main residence is passed down to children after their death. The MRNRB is in addition to the existing £325,000 inheritance tax threshold.
Years before death	0-3	3-4	4-5	5-6	6-7
% of death charge	100%	80%	60%	40%	20%
Main exempt lifetime gifts
Recurring annual gifts out of surplus income				unlimited
Annual gifts out of capital (with one year carry forward if unused)				£3,000
Small gifts (per recipient)				£250
Parental gift on marriage				£5,000
Grandparent or party to marriage				£2,500
Other gifts on marriage (per donor)				£1,000
Business Property Relief
Shares in unquoted companies (including USM/AIM stocks)				100%
Shares in quoted companies
– shareholding up to 50%				none
– shareholding over 50%				50%
Unincorporated business or interest in a business				100%
Land, buildings, plant and machinery used in the deceased’s business/company				50%

National insurance – Rates and Allowances	2022-23	2021-22
Lower weekly earnings limit, primary Class 1	£123	£120
Upper weekly earnings limit, primary Class 1	£967	£967
Primary weekly earnings threshold From 6 April 2022 – 5 July 2022	£190	£184
Primary weekly earnings threshold From 6 July 2022 – 5 April 2023	£242	£184
Secondary weekly earnings threshold	£175	£170
Employees’ primary Class 1 rate between primary earnings threshold and upper earnings limit Period 06/04/2022 – 05/11/2022	13.25%	12%
Employees’ primary Class 1 rate between primary earnings threshold and upper earnings limit Period 06/11/2022 – 05/04/2023	12.00%	2.00%
Employees’ primary Class 1 rate above upper earnings limit Period 06/04/2022 – 05/11/2022	3.25%	2.00%
Employees’ primary Class 1 rate above upper earnings limit Period 06/11/2022 – 05/04/2023	2.00%	2.00%
Married women’s reduced rate between primary earnings threshold and upper earnings limit Period 06/04/2022 – 05/11/2022	7.10%	5.85%
Married women’s reduced rate between primary earnings threshold and upper earnings limit Period 06/11/2022 – 05/04/2023	5.85%	5.85%
Married women’s rate above upper earnings limit Period 06/04/2022 – 05/11/2022	3.25%	2.00%
Married women’s rate above upper earnings limit Period 06/11/2022 – 05/04/2023	2.00%	2.00%
Employers’ secondary Class 1 rate above secondary earnings threshold Period 06/04/2022 – 05/11/2022	15.05%	13.80%
Employers’ secondary Class 1 rate above secondary earnings threshold Period 06/11/2022 – 05/04/2023	13.80%	13.80%
Class 2 weekly rate	£3.15	£3.05
Class 2 small earnings exception	£6,725 peryear	£6,515 peryear
Special Class 2 weekly rate for share fishermen	£3.80	£3.70
Special Class 2 weekly rate for volunteer development workers	£6.15	£6.00
Class 3 voluntary weekly rate	£15.85	£15.40
Class 4 lower Profits limit (£12,570 from 6 April 2023)	£11,908 per year	£9,568 per year
Class 4 upper Profits limit	£50,270 per year	£50,270 per year
Class 4 rate between lower profits limit and upper profits limit	9.73%	9.00%
Class 4 rate above upper profits limit	2.73%	2.00%

A NI tax free allowance of £5,000 for 2022/23 (2021/22 – £4,000) is available to offset against employers’ Class 1 secondary NICs subject to certain restrictions. No employers’ contributions are payable in respect of weekly earnings up to £967paid to employees under 21 nor for qualifying apprentices aged under 25.

Pension Contributions*	2022-23	2021-22
Lifetime allowance	£1,073,100	£1,073,100
Maximum annual contribution	£40,000	£40,000
Tax on excess	Marginal rate	Marginal rate
Normal minimum pension age	55	55
Old State pension – per week**	2022-23	2021-22
Single person	£141.85	£137.60
Addition for wife if non-contributor	£85.00	£82.45
New State Pension – per week	2022-23	2021-22
Single person	£185.15	£179.60

  *The annual allowance is tapered for taxpayers whose income exceeds £150,000. The allowance is reduced by £1 for every £2 that an individual’s income exceeds £150,000, down to a minimum of £4,000 for individuals with income of £240,000 or more. **Retirees that reached the State Pension age before 6 April 2016, will continue to receive the old state pension and not the new state pension.

Bands	2022-23	2021-22
Savings starting rate – 0%*	£0 – £5,000	£0 – £5,000
Basic rate 20%	£0-£37,700	£0-£37,700
Higher rate 40%	£37,701– £150,000	£37,701– £150,000
Additional rate 45%	Over £150,000	Over £150,000
Scottish rates	2022-23	2021-22
Starter rate 19% on taxable income	£12,571 – £14,732 (£2,162)	£12,571 – £14,667 (£2,097)
Basic rate 20%	£14,733 – £25,688 (£10,956)	£14,668 – £25,296 (£10,629)
Intermediate rate – 21%	£25,689– £43,662 (£17,974)	£25,297– £43,662 (£18,366)
Higher rate – 41%	£43,663 – £150,000	£43,663 – £150,000
Additional rate – 46%	Over £150,000	Over £150,000

  * Savings income is taxed at 0% up to £5,000 (0% up to £5,000). If an individual’s taxable non-savings income exceeds £5,000 then the savings rate will not be available. ** The Scottish Rate of Income Tax (SRIT) is payable on the non-savings and non-dividend income of those defined as Scottish taxpayers.

Dividend rates	2022-23	2021-22
Dividend allowance	£2,000	£2,000
Dividend ordinary rate	8.75%	7.5%
Dividend upper rate	33.75%	32.5%
Dividend additional rate	39.35%	38.1%
Personal savings allowance	2022-23	2021-22
– basic rate taxpayers	£1,000	£1,000
– higher rate taxpayers	£500	£500
Reliefs	2022-23	2021-22
Personal allowance	£12,570	£12,570
Registered blind person’s allowance	£2,600	£2,520
Income limit for personal allowance*	£100,000	£100,000

  * The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000.  

Married couple allowance – tax relief given at 10%	2022-23	2021-22
– Born before 6 April 1935	£9,415	£9,125
– Minimum amount*	£3,640	£3,530
– Income limit	£31,400	£30,400
– Marriage allowance*	£1,260	£1,260

* A taxpayer can transfer up to £1260 – 2022/23 (£1,250 – 2020/21) of their unused personal allowance to a spouse or civil partner who is not a higher rate tax payer.

High Income Child Benefit Charge*	2022-23	2021-22
on income over	£50,000	£50,000

* The tax charge is levied at the rate of 1% of the full child benefit award for each £100 that income exceeds £50,000, up to a maximum of 100% of the child benefit claimed. Taxpayers can choose whether to continue receiving child benefit and pay the tax charge or may opt out of receiving the child benefit. There is a cap on certain Income Tax reliefs of the greater of £50,000 or 25% of income.

Stamp Duty and Annual Tax on Enveloped Dwellings Shares and securities rate 0.5% The annual tax on Enveloped Dwellings (ATED) is payable by certain non-natural persons that own interests in dwellings valued at more than £500,000. Stamp Duty and Stamp Duty Land Tax (SDLT) Property in England, Wales and N. Ireland

Rate	Residential Property
Zero	£0 – £125,000
2%	£125,001 – £250,000
5%	£250,001 – £925,000
10%	£925,001 – £1,500,000
12%	Over £1,500,000

  SDLT on non-residential and mixed use properties.

Rate	Non-Residential Property
Zero	£0 – £150,000
2%	£150,001 – £250,000
5%	Over £250,000

  These rates are applied on a graduated basis with the portion of the purchase price within each tier charged at the applicable rate. 15% is applied to residential properties held in a ‘corporate envelope’ costing over £500,000. There is a higher rate of SDLT that applies to purchases of additional residential property such as buy to let and second homes.The rate is 3% higher than the current SDLT rates and applies to the purchase of additional residential properties valued at £40,000 and above.   Scotland: Land & buildings transaction tax (SLBTT) Property in Scotland

Rate	Residential Property
Zero	£0 – £145,000
2%	£145,001 – £250,000
5%	£250,001 – £325,000
10%	£325,001 – £750,000
12%	Over £750,000

  Non-Residential and mixed-use properties.

Rate	Non-Residential Property
Zero	£0 – £150,000
2%	£150,001 – £250,000
5%	Over £250,000

  These rates are applied on a graduated basis with the portion of the purchase price within each tier charged at the applicable rate. There are currently no further measures specifically targeting first-time buyers in Wales. There is a WLTT higher rate supplement of 3% on purchases of additional residential properties costing £40,000 or more.

National Living Wage	2022-23	2021-22
Age 23 & over	£9.50p.h.	£8.91 p.h.

 

National Minimum Wage	2022-23	2021-22
Aged 23+	£9.50p.h.	£8.91 p.h.
Aged 21 to 22	£9.18p.h.	£8.36p.h.
Aged 18 to 20	£6.83p.h.	£6.56p.h.
Aged 16 and 17	£4.81p.h.	£4.62p.h.
Apprentice rate	£4.81p.h.	£4.30p.h.

Rates and Limits	2022-23	2021-22
Standard rate	20%	20%
Reduced rate	5%	5%
Zero rate	0%	0%
Temporary reduced rate for hospitality and tourism sector*		5%/12.5%
Annual registration limit (from 1 April 2017)	£85,000	£85,000
Annual deregistration limit (from 1 April 2017)	£83,000	£83,000
VAT Cash accounting scheme threshold	£1,350,000	£1,350,000
VAT Annual accounting scheme threshold	£1,350,000	£1,350,000

*The 5% rate applied to the 30 September 2021 and the 12.5% rate applied from 1 October 2021 to 31 March 2022