We have summarised the key rates and allowances which are fundamental to our business and personal lives. We are sure that you will find them a useful point of reference and have set out below a few examples of how they can be used.
As the UK tax system becomes more devolved, it is important to keep abreast of the changes taking place in the Scottish and Welsh income tax rates and bands. We have summarised the relevant information together with the rates and allowances which apply to investment income.
If you buy property then property taxes payable are different depending where the property is in the United Kingdom. Stamp Duty Land Tax is payable on property in England and Northern Ireland, whilst Land and Buildings Transaction Tax is payable on property in Scotland and Land Transaction Tax on property in Wales. Our tax rates highlight the main rates so that you can consider the potential cost of buying property.
If you sell an asset such as shares or your business, capital gains tax may be due. Our tax rates highlight the main rates and reliefs so that you can consider the tax bill that may arise.
If you run a business, obtaining the right allowances on equipment that your business buys can affect the tax that your business has to pay each year. We have summarised the main allowances that are available.
There are changes to the way company car benefits are calculated this year. Our guide explains how these are computed to help ensure that you are paying the correct amount of tax.
Long term planning for a comfortable retirement can never start too early. Our tax rates explain how much can be contributed to an approved pension scheme each year tax efficiently.
Our tax rates contain the main inheritance tax rates and exemptions but early planning can mitigate these tremendously.
These rates are intended for use as a quick point of reference. Should you require any further information, have a simple question or require detailed advice we are only a phone call away.
Expenditure incurred: |
Annual limit |
---|---|
£ | |
From 1 January 2019 to 31 March 2023 | 1,000,000 |
From 1 April 2023 | 200,000 |
Expenditure incurred: |
Annual limit |
---|---|
£ | |
From 1 January 2019 to 31 March 2023 | 1,000,000 |
From 1 April 2023 | 200,000 |
Emissions (g/km) |
Pool |
Allowance |
---|---|---|
0 | Main rate | 100% FYA |
≤ 50 | Main rate | 18% WDA |
>50 | Special rate | 6% WDA |
Individuals | 2022/23 |
---|---|
£ | |
Exemption | 12,300 |
Standard rate | 10% |
Higher rate | 20% |
The higher rate applies to higher rate and additional rate taxpayers.
Gains accruing on the disposal of certain residential property and arising on carried interest can attract a standard rate of 18% or a higher rate of 28% for individuals and of 28% for Trusts and Personal Representatives.
Trusts | 2022/23 |
---|---|
£ | |
Exemption | 6,150 |
Rate | 20% |
2022/23 |
|
CO2 emissions
|
% of list price taxed |
0 |
2 |
1–50 (split by zero-emission miles) |
|
51–54 |
15 |
55-59 |
16 |
60-64 |
17 |
65-69 |
18 |
70-74 |
19 |
75-79 |
20 |
80-84 |
21 |
85-89 |
22 |
90-94 |
23 |
95-99 |
24 |
100-104 |
25 |
105-109 |
26 |
110-114 |
27 |
115-119 |
28 |
120-124 |
29 |
125-129 |
30 |
130-134 |
31 |
135-139 |
32 |
140-144 |
33 |
145-149 |
34 |
150-154 |
35 |
155-159 |
36 |
160 and above |
37 |
Car fuel benefit 2022/23 | |
---|---|
Fuel charge multiplier | £25,300 |
Engine size | Petrol |
---|---|
1400cc or less | 13p |
1401cc - 2000cc | 15p |
Over 2000cc | 22p |
Engine size | Diesel |
---|---|
1600cc or less | 11p |
1601cc - 2000cc | 13p |
Over 2000cc | 16p |
Engine size | LPG |
---|---|
1400cc or less | 8p |
1401cc - 2000cc | 10p |
Over 2000cc | 15p |
Hybrid cars are treated as either petrol or diesel cars for this purpose.
The Advisory Electricity Rate for fully electric cars is 5 pence per mile. Electricity is not a fuel for car fuel benefit purposes.
Child Benefit is receivable by a person responsible for each child who is under 16, or under 20 if they stay in approved education or training.
If the person (or their spouse or partner) has 'adjusted net income' above £50,000 the person with the highest income has to pay some of the Child Benefit as a tax charge.
Where adjusted net income is more than £60,000 a year, the tax charge equals the Child Benefit received.
Rates - 2022/23 | £ per week |
---|---|
Eldest/Only Child | £21.80 |
Other Children | £14.45 |
Year to 31.3.23 | Rate % |
---|---|
All profits | 19 |
2022/23 Statutory pay rates - average weekly earnings £123 or over |
|
---|---|
Statutory Sick Pay | £99.35 |
Statutory Maternity Pay | |
First six weeks | 90% of weekly earnings |
Next 33 weeks | £156.66 |
Statutory Paternity Pay - two weeks | £156.66 |
Statutory Adoption Pay - 39 weeks | |
First six weeks | 90% of weekly earnings |
Next 33 weeks | £156.66 |
Shared Parental Pay | £156.66 |
Statutory Parental Bereavement Pay - two weeks | £156.66 |
With the exception of Statutory Sick Pay, statutory payments may be payable at 90% average weekly earnings throughout the payment period in certain circumstances. This applies where 90% weekly earnings are less than the standard rate of £156.66.
A personal allowance gives an individual an annual amount of income free from income tax.
Income above the personal allowances is subject to income tax.
The personal allowance will be reduced if an individual's 'adjusted net income' is above £100,000. The allowance is reduced by £1 for every £2 of income above £100,000.
An individual born before 6 April 1935 may be entitled to a married couple's allowance but this is reduced if 'adjusted net income' is above the married couple's allowance income limit (see table below).
Marriage allowance - 10% of the personal allowance may be transferable between certain spouses where neither pays tax above the basic rate. The Marriage allowance is not available to couples entitled to the Married Couple's allowance.
Income tax personal allowances | £ |
Personal Allowance | 12,570 |
Marriage Allowance | 1,260 |
Blind person's allowance | 2,600 |
Married couple's allowance Either partner born before 6 April 1935 |
|
- Maximum reduction in tax bill | 941.50 |
- Minimum reduction in tax bill | 364.00 |
Married couple's allowance income limit Reduce married couple's allowance by £1 for every £2 of 'adjusted net income' above this limit |
31,400 |
Band of taxable income | Rate | Rate if dividends | |
---|---|---|---|
£ | % | % | |
0 - 37,700 | Basic rate | 20 | 8.75 |
37,701 - 150,000 | Higher rate | 40 | 33.75 |
Over 150,000 | Additional rate | 45 | 39.35 |
Special rates for savings and dividend income falling into above bands of taxable income | |||
Savings Allowance | |||
Basic rate taxpayers | 1,000 | 0 | |
Higher rate taxpayers | 500 | 0 | |
Additional rate taxpayers | Nil | N/A | |
Dividend Allowance | |||
for all taxpayers | 2,000 | 0 |
Band of taxable income | Rate | |
---|---|---|
£ | % | |
0 - 2,162 | Starter rate | 19 |
2,163 - 13,118 | Basic rate | 20 |
13,119 - 31,092 | Intermediate rate | 21 |
31,093 - 150,000 | Higher rate | 41 |
Over 150,000 | Top rate | 46 |
Band of taxable income | UK Rate | Welsh Rate | Total Rate | |
---|---|---|---|---|
£ | % | % | % | |
0 - 37,700 | Basic rate | 10 | 10 | 20 |
37,701 - 150,000 | Higher rate | 30 | 10 | 40 |
Over 150,000 | Additional rate | 35 | 10 | 45 |
The income from ISA investments is exempt from income tax. Any capital gains made on investments held in an ISA are exempt from capital gains tax.
Savers are able to subscribe any amounts into a cash ISA, a stocks and shares ISA or an innovative finance ISA subject to not exceeding the overall annual investment limit.
Investors may transfer their investments from one kind of ISA to another.
The Lifetime ISA is available for those aged between 18 and 40. Save up to £4,000 each year up until the age of 50, and receive a government bonus of 25% (a bonus of up to £1,000 a year). Savers can use some or all of the money to buy their first home, or keep it until they are aged 60 when the account can be accessed tax free. Conditions apply to the account holder and property purchased. Penalties apply if funds are withdrawn in other circumstances.
A Help to Buy ISA provides a tax free savings account for first time buyers wishing to save for a home. The scheme provides a government bonus to each person who has saved into a Help to Buy ISA at the point they use their savings to purchase their first home. For every £200 a first time buyer saves, the government will provide a £50 bonus up to a maximum bonus of £3,000 on £12,000 of savings. The bonus will be paid in the form of a voucher when the first home is purchased. Conditions apply to the account holder and to the property purchased. Help to Buy ISAs closed to new savers on 30 November 2019. Existing holders can continue saving until 30 November 2029 and will have until 1 December 2030 to claim their bonus.
ISA limits 2022/23 | |
---|---|
Overall annual investment limit | £20,000 |
Junior ISA annual investment limit | £9,000 |
Help to Buy ISA monthly subscription limit | £200 |
Lifetime ISA annual investment limit | £4,000 |
IHT nil rate | £325,000 |
Lifetime rate | 20% |
Death rate | 40% |
Death rate if sufficient charitable legacies made | 36% |
Annual exemption | £3,000 |
Small gifts | £250 |
Marriage | |
- parent | £5,000 |
- grandparent | £2,500 |
- other | £1,000 |
Years before death | % of death charge |
---|---|
0-3 | 100 |
3-4 | 80 |
4-5 | 60 |
5-6 | 40 |
6-7 |
20 |
Land and Buildings Transaction Tax (LBTT) is payable on land and property transactions in Scotland.
Consideration (£) | Rate |
---|---|
0 - 145,000 | 0% |
145,001 - 250,000 | 2% |
250,001 - 325,000 | 5% |
325,001 - 750,000 | 10% |
750,001 and above | 12% |
The rates apply to the portion of the total value which falls within each band.
Residential rates may be increased by 4% where further residential properties, costing over £40,000, are acquired.
First-time Buyer relief raises the zero rate tax threshold for first-time buyers from £145,000 to £175,000.
Consideration (£) | Rate |
---|---|
0 - 150,000 | 0% |
150,001 - 250,000 | 1% |
Over 250,000 | 5% |
The rates apply to the portion of the total value which falls within each band.
Land Transaction Tax (LTT) is payable on land and property transactions in Wales.
Consideration (£) | Rate |
---|---|
0 - 180,000 | 0% |
180,001 - 250,000 | 3.5% |
250,001 - 400,000 | 5% |
400,001 - 750,000 | 7.5% |
750,001 - 1,500,000 | 10% |
1,500,000 and above | 12% |
The rates apply to the portion of the total value which falls within each band.
Residential rates may be increased by 4% where further residential properties costing over £40,000 or over are acquired.
Higher residential rates may apply when you already own one or more residential properties.
Consideration (£) | Rate |
---|---|
0 - 180,000 | 4% |
180,001 - 250,000 | 7.5% |
250,001 - 400,000 | 9% |
400,001 - 750,000 | 11.5% |
750,001 - 1,500,000 | 14% |
1,500,000 and above | 16% |
The rates apply to the portion of the total value which falls within each band.
Consideration (£) | Rate |
---|---|
0 - 225,000 | 0% |
225,001 - 250,000 | 1% |
250,001 - 1,000,000 | 5% |
Over 1,000,000 | 6% |
The rates apply to the portion of the total value which falls within each band.
Cars and vans | Rate per mile |
Up to 10,000 miles | 45p |
Over 10,000 miles | 25p |
Bicycles | 20p |
Motorcycles | 24p |
Age | NLW | 21-22 | 18-20 | 16-17 |
Apprentice |
From 1 April 2022 | £9.50 | £9.18 | £6.83 | £4.81 | £4.81 |
Earnings per week | % |
---|---|
Up to £190* | Nil |
£190.01 - £967 | 13.25 |
Over £967 | 3.25 |
* £242 from 6 July 2022
Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £190* per week.
Earnings per week | % |
---|---|
Up to £175 | Nil |
Over £175 | 15.05 |
Class 1A - 15.05% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000
Class 1B - 15.05% on taxable PAYE Settlement Agreements
Flat rate per week | £3.15 |
Small Profits Threshold | £6,725 per year |
Lower Profits Limit | £11,908 |
For 2022/23 the point at which the self-employed person starts to pay Class 2 NICs will increase to £11,908. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
Annual profits | % |
---|---|
Up to £11,908 | Nil |
£11,908.01 - £50,270 | 10.25 |
Over £50,270 | 3.25 |
Flat rate per week £15.85
Auto enrolment places duties on employers to automatically enrol 'workers' into a work based pension scheme. Employers are required to automatically enrol all 'eligible jobholders' into a qualifying pension scheme and pay pension contributions on their behalf.
Employer minimum contribution | Total minimum contribution |
---|---|
3% | 8% |
Where the employer does not make the total minimum contribution the employee is obliged to pay the balance.
2022/23 | |
---|---|
Automatic enrolment earnings trigger | £10,000 |
Qualifying earnings band - lower limit | £6,240 |
Qualifying earnings band - upper limit | £50,270 |
Income up to £1,000 | Property income assessable NIL |
Income over £1,000 | Election to deduct £1,000 rather than the actual expenses |
31 January 2022 - First payment on account due for 2021/22 tax year.
31 July 2022 - Second payment on account for 2021/22 tax year.
5 October 2022 - Deadline for notifying HMRC of new sources of income (including the Child Benefit charge) if no tax return has been issued for 2021/22 tax year.
31 October 2022 - Deadline for submission of 2021/22 non-electronic returns.
30 December 2022 - Deadline for submission of 2021/22 electronic tax returns if 'coding out' of eligible underpayment is required.
31 January 2023 - Deadline for filing electronic tax returns for 2021/22. Balancing payment due for 2021/22 tax year. First payment on account due for 2022/23 tax year.
When you buy shares, you usually pay a tax or duty of 0.5% on the transaction. If you buy shares electronically Stamp Duty Reserve Tax (SDRT) is payable. For shares purchased using a stock transfer form, you will pay Stamp Duty if the transaction is over £1,000.
The rates apply to the portion of the total value which falls within each band.
Consideration (£) | Rate |
0 - 125,000 | 0% |
125,001 - 250,000 | 2% |
250,001 - 925,000 | 5% |
925,001 - 1,500,000 | 10% |
1,500,001 and above | 12% |
These rates may be increased by 3% where further residential properties, costing over £40,000, are acquired.
First-time Buyer relief
From 1 July 2021 First-time buyers may be eligible for first-time buyer relief on purchases of residential property up to £500,000. The rates apply to the portion of the total value which falls within each band.
Consideration (£) | Rate |
0 - 300,000 | 0% |
300,001 - 500,000 | 5% |
for purchases over 500,000 | normal rates apply |
Consideration (£) | Rate |
0 - 150,000 | 0% |
150,001 - 250,000 | 2% |
Over 250,000 | 5% |
Payable on consideration which falls in each band.
Weekly State Pension 2022/23 | |
---|---|
Basic - single person | £141.85 |
New State Pension | £185.15 |
The Enterprise Investment Scheme (EIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. Individuals are entitled to relief on investments in certain unquoted trading companies through EIS. A junior version of EIS the SEIS is also available.
Maximum investment per annum | £1,000,000 |
Additional investment limit where investing in knowledge-intensive companies | £1,000,000 |
Income tax relief | 30% |
CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making an EIS investment.
The Seed Enterprise Investment Scheme (SEIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. SEIS is a junior version of EIS.
Maximum investment per annum | £100,000 |
Income tax relief | 50% |
CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be exempt up to £50,000 per annum by making an SEIS investment.
Social Investment Relief (SIR) is designed to encourage private individuals to invest in social enterprises including charities. Individuals are entitled to relief on their investment:
Maximum investment per annum | £1,000,000 |
Income tax relief | 30% |
CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making a SIR investment.
Venture Capital Trusts (VCTs) are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies. VCTs operate by indirect investment through a mediated fund. In effect they are very like the investment trusts that are obtainable on the stock exchange, albeit in a high-risk environment. Individuals are entitled to relief on investments in VCTs.
Maximum investment per annum | £200,000 |
Income tax relief | 30% |
Dividend income | Exempt |
Capital gains treatment on disposal | Exempt |
All reliefs are subject to detailed conditions being met.
Income up to £1,000 | Profits assessable NIL |
Income over £1,000 | Election to deduct £1,000 allowance rather than the actual expenses |
Van benefits 2022/23 | |
---|---|
Van benefit | £3,600 |
Fuel benefit | £688 |
VAT - rates and limits | |
---|---|
Standard rate | 20% |
Reduced rate | 5%* |
Annual Registration Limit - from 1.4.22 - 31.3.23 |
£85,000 |
Annual Deregistration Limit - from 1.4.22 - 31.3.23 |
£83,000 |
Businesses must use these new VAT fuel scale charges from the start of their next prescribed accounting period beginning on or after 1 May 2021.
CO2 band |
Gross monthly £ |
VAT £ |
Net £ |
120 or less | 48 | 8.00 | 40.00 |
125 | 72 | 12.00 | 60.00 |
130 | 77 | 13.00 | 65.00 |
135 | 82 | 14.00 | 68.00 |
140 | 87 | 14.50 | 72.50 |
145 | 91 | 15.17 | 75.83 |
150 | 97 | 16.17 | 80.83 |
155 | 102 | 17.00 | 85.00 |
160 | 106 | 17.67 | 88.33 |
165 | 111 | 18.50 | 92.50 |
170 | 116 | 19.33 | 96.67 |
175 | 121 | 20.17 | 100.83 |
180 | 126 | 21.00 | 105.00 |
185 | 130 | 21.67 | 108.33 |
190 | 136 | 22.67 | 113.33 |
195 | 141 | 23.50 | 117.50 |
200 | 145 | 24.17 | 120.83 |
205 | 150 | 25.00 | 125.00 |
210 | 155 | 25.83 | 129.17 |
215 | 160 | 26.67 | 133.33 |
220 | 165 | 27.50 | 137.50 |
225 or more | 169 | 28.17 | 140.83 |
CO 2 band |
Gross 3 month period £ | VAT £ |
Net £ |
120 or less | 145 | 24.17 | 120.83 |
125 | 219 | 36.50 | 182.50 |
130 | 233 | 38.83 | 194.17 |
135 | 247 | 41.17 | 205.83 |
140 | 262 | 43.67 | 218.33 |
145 | 277 | 45.83 | 230.83 |
150 | 292 | 48.67 | 243.33 |
155 | 306 | 51.00 | 255.00 |
160 | 321 | 53.50 | 267.50 |
165 | 336 | 56.00 | 280.00 |
170 | 350 | 58.33 | 291.67 |
175 | 364 | 60.33 | 303.33 |
180 | 379 | 63.17 | 315.83 |
185 | 394 | 65.67 | 328.33 |
190 | 409 | 68.17 | 340.83 |
195 | 423 | 70.50 | 352.50 |
200 | 438 | 73.00 | 365.00 |
205 | 453 | 75.50 | 377.50 |
210 | 467 | 77.83 | 389.17 |
215 | 481 | 80.17 | 400.83 |
220 | 496 | 82.67 | 413.33 |
225 or more | 511 | 85.17 | 425.83 |
CO 2 band |
Annual gross £ |
VAT £ |
Net £ |
120 or less | 585 | 97.50 | 487.50 |
125 | 875 | 145.83 | 729.17 |
130 | 936 | 156.00 | 780.00 |
135 | 992 | 165.33 | 826.67 |
140 | 1,053 | 175.50 | 877.50 |
145 | 1,109 | 184.83 | 924.17 |
150 | 1,170 | 195.00 | 975.00 |
155 | 1,226 | 204.33 | 1,021.67 |
160 | 1,287 | 214.50 | 1,072.50 |
165 | 1,343 | 223.83 | 1,119.17 |
170 | 1,404 | 240.00 | 1,170.00 |
175 | 1,460 | 243.33 | 1,216.67 |
180 | 1,521 | 253.50 | 1,267.50 |
185 | 1,577 | 262.83 | 1,314.17 |
190 | 1,638 | 273.00 | 1,365.00 |
195 | 1,694 | 282.83 | 1,411.67 |
200 | 1,755 | 292.50 | 1,462.50 |
205 | 1,811 | 301.83 | 1,509.17 |
210 | 1,872 | 312.00 | 1,560.00 |
215 | 1,928 | 321.33 | 1,606.67 |
220 | 1,989 | 331.50 | 1,657.50 |
225 or more | 2,045 | 340.83 | 1,704.17 |
Where the CO2 emission figure is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of the charge.
For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the two figures should be used.
For cars which are too old to have a CO2 emissions figure, you should identify the CO2 band based on engine size. If its cylinder capacity is:
For vehicles first registered on or after 1 April 2017, the VED or 'Road Tax' rate for the first 12 months is based on CO2 emissions shown on the V5 (Registration Document).
Subsequent years are charged at the standard rate. Cars with a list price of over £40,000 when new pay an additional rate of £355 per year on top of the standard rate, for five years.
New diesel vehicles that do not meet the Euro 6d emissions standard are charged a supplement on their First Year Rate to the effect of moving up by one VED band.
CO2 emissions (g/km) | Standard rate | First year rate |
---|---|---|
0 | £0 | £0 |
1-50 | £165 | £10 |
51-75 | £165 | £25 |
76-90 | £165 | £120 |
91-100 | £165 | £150 |
101-110 | £165 | £170 |
111-130 | £165 | £190 |
131-150 | £165 | £230 |
151-170 | £165 | £585 |
171-190 | £165 | £945 |
191-225 | £165 | £1,420 |
226-255 | £165 | £2,015 |
Over 255 | £165 | £2,365 |
VED band | CO 2 emissions (g/km) | Standard rate |
---|---|---|
A | Up to 100 | £0 |
B | 101-110 | £20 |
C | 111-120 | £30 |
D | 121-130 | £135 |
E | 131-140 | £165 |
F | 141-150 | £180 |
G | 151-165 | £220 |
H | 166-175 | £265 |
I | 176-185 | £290 |
J | 186-200 | £330 |
K | 201-225* | £360 |
L | 226-255 | £615 |
M | Over 255 | £630 |
*Including cars emitting over 225g/km registered before 23 March 2006.
Copyright © 2013 - Oury Clark.
Oury Clark is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 100556.