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7 min read 6 Apr 22
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Basic rate income tax band (20%) |
£0 - £37,500 |
£0 - £37,700 |
£0 - £37,700 |
|
Higher rate income tax band (40%) |
£37,501 - £150,000 |
£37,701 - £150,000 |
£37,701 - £150,000 |
|
Additional rate income tax band (45%) |
£150,000+ |
£150,000+ |
£150,000+ |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Starter rate income tax (19%) |
£0 - £2,085 |
£0 - £2,097 |
£0 - £2,162 |
|
Basic rate income tax (20%) |
£2,086 - £12,658 |
£2,098 - £12,726 |
£2,163 - £13,118 |
|
Intermediate rate income tax (21%) |
£12,659 - £30,930 |
£12,727 - £31,092 |
£13,119 – £31,092 |
|
Higher rate income tax (40%) |
n/a |
n/a |
n/a |
|
Higher rate income tax (41%) |
£30,931 - £150,000 |
£31,093 - £150,000 |
£31,093 - £150,000 |
|
Additional rate income tax band (45%) |
n/a |
n/a |
n/a |
|
Top rate income tax band (46%) |
£150,000 + |
£150,000+ |
£150,000+ |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Starting rate of tax on savings income |
0% |
0% |
0% |
|
Basic rate of tax on savings income |
20% |
20% |
20% |
|
Higher rate of tax on savings income |
40% |
40% |
40% |
|
Additional rate of tax on savings income |
45% |
45% |
45% |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Basis rate tax payers |
£1,000 |
£1,000 |
£1,000 |
|
Higher rate tax payers |
£500 |
£500 |
£500 |
|
Additional rate tax payers |
£0 |
£0 |
£0 |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Personal allowance |
£12,500 |
£12,570 |
£12,570 |
|
Blind persons allowance |
£2,500 |
£2,520 |
£2,600 |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Dividend allowance |
£2,000 |
£2,000 |
£2,000 |
|
Dividend ordinary rate - for dividends otherwise taxable at the basic rate. |
7.5% |
7.5% |
8.75% |
|
Dividend upper rate - for dividends otherwise taxable at the higher rate. |
32.5% |
32.5% |
33.75% |
|
Dividend additional rate - for dividends otherwise taxable at the additional rate. |
38.1% |
38.1% |
39.35% |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Discretionary trusts | ||||
UK investment bonds |
Gains above 1,000 taxed at 25% |
Gains above 1,000 taxed at 25% |
Gains above 1,000 taxed at 25% |
|
Offshore investment bonds |
Gains above £1,000 taxed at 45% |
Gains above £1,000 taxed at 45% |
Gains above £1,000 taxed at 45% |
|
Unit trusts & OEICs |
Dividends taxed at 7.5% and interest taxed at 20%. For income above £1,000, dividends are taxed at 38.1% and interest 45% |
Dividends taxed at 7.5% and interest taxed at 20%. For income above £1,000, dividends are taxed at 38.1% and interest 45% |
Dividends taxed at 8.75% and interest taxed at 20%. For income above £1,000, dividends are taxed at 39.35% and interest 45% |
|
Interest in Possession Trusts |
||||
UK investment bonds |
In tax years post death, UK trustees are taxed at 25% |
In tax years post death, UK trustees are taxed at 25% |
In tax years post death, UK trustees are taxed at 25% |
|
Offshore investment bonds |
In tax years post death, UK trustees are taxed at 45% |
In tax years post death, UK trustees are taxed at 45% |
In tax years post death, UK trustees are taxed at 45% |
|
Unit trusts and OEICs |
Trustees are taxed at 20% on interest and 7.5% on dividends |
Trustees are taxed at 20% on interest and 7.5% on dividends |
Trustees are taxed at 20% on interest and 8.75% on dividends |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Marriage Allowance |
£1,250 |
£1,260 |
£1,260 |
|
Marriage Couple's Allowance for those born before 6 April 1935 |
£9,075(max) |
£9,125 (max) |
£9,415 (max) |
|
Income limit for Married Couple's Allowance |
£30,200 |
£30,400 |
£31,400 |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Class 1 NICs: Employee and employer thresholds and allowance (£ per week - except where stated) |
||||
Lower Earnings Limit |
£120 |
£120 |
£123 |
|
Primary Threshold |
£183 |
£184 |
£229* |
|
Secondary Threshold |
£169 |
£170 |
£175 |
|
Upper Earnings Limit |
£962 |
£967 |
£967 |
|
Upper Secondary Threshold for under 21s |
£962 |
£967 |
£967 |
|
Apprentice Upper Secondary Threshold for under 25s |
£962 |
£967 |
£967 |
|
Employment Allowance (per employer) |
£4,000 per year |
£4,000 per year |
£5,000 per year |
|
*Employee National Insurance is using the “Effective Annual threshold” of £11,908 which refers to the Primary Threshold level if the weekly level was applied for a full year. This is based on the Primary Threshold being £9,880 from 6 April 2022 until 5 July 2022, and then £12,570 from 6 July 2022 until 5 April 2023 Class 1 NICs: Employee NIC rates |
||||
Below Weekly Lower Earnings Limit |
0% |
0% |
0% |
|
Weekly Lower Earnings Limit to Primary Threshold |
0% |
0% |
0% |
|
Primary Threshold to Upper Earnings Limit |
12% |
12% |
13.25% |
|
Above Upper Earnings Limit |
2% |
2% |
3.25% |
|
Married woman’s reduced rate for (primary) Class 1 contribution rates |
|
|||
Weekly earnings from between the Primary Threshold and Upper Earnings Limit |
5.85% |
5.85% |
7.1% |
|
Weekly earnings above the Upper Earnings Limit |
2% |
2% |
3.25% |
|
Class 1 NICs: Employer NIC rates |
|
|||
Employer’s (secondary) Class 1 contribution rates |
|
|||
Below the Secondary Threshold |
0% |
0% |
0% |
|
Above the Secondary Threshold |
13.8% |
13.8% |
15.05% |
|
Employer’s (secondary) Class 1 contribution rates for employees under 21 |
|
|||
Below the Upper Secondary Threshold |
0% |
0% |
0% |
|
Above Upper Secondary Threshold |
13.8% |
13.8% |
15.05% |
|
Employer’s (secondary) Class 1 contribution rates for Apprentices under 25 |
|
|||
Below the Upper Secondary Threshold |
0% |
0% |
0% |
|
Above Upper Secondary Threshold |
13.8% |
13.8% |
15.05% |
|
Class 2 NICs: Self-employed rates and thresholds |
|
|||
Small Profits Threshold |
£6,475 per year |
£6,515 per year |
£6,725 per year |
|
Above the Small Profits Threshold |
£3.05 |
£3.05 |
£3.15 |
|
Class 3 NICs: Other rates and thresholds |
|
|||
Voluntary contributions |
£15.30 |
£15.40 |
£15.85 |
|
Class 4 NICs: Self-employed rates and thresholds |
|
|||
Lower Profits Limit |
£9,500 |
£9,568 |
£9,880 |
|
Upper Profits Limit |
£50,000 |
£50,270 |
£50,270 |
|
Class 4 contribution rates |
|
|||
Below the Lower Profits Limit |
0% |
0% |
0% |
|
Between the Lower Profits Limit and Upper Profits Limit |
9% |
9% |
10.25% |
|
Above the Upper Profits Limit |
2% |
2% |
3.25% |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Working tax credits (per year) | ||||
Basic element |
£1,995 |
£2,005 |
Announced Nov 2021 |
|
Couple and lone parent element |
£2,045 |
£2,060 |
Announced Nov 2021 |
|
30 hour element |
£825 |
£830 |
Announced Nov 2021 |
|
Disabled worker element |
£3,220 |
£3,240 |
Announced Nov 2021 |
|
Severe disability element |
£1,390 |
£1,400 |
Announced Nov 2021 |
|
Childcare element of the working tax credit (per week) |
|
|||
Maximum eligible cost for one child |
£175 |
£175 |
Announced Nov 2021 |
|
Maximum eligible cost for two or more children |
£300 |
£300 |
Announced Nov 2021 |
|
Percentage of eligible costs covered |
70% |
70% |
Announced Nov 2021 |
|
Child tax credit (per year) |
|
|||
Family element |
£545 |
£545 |
Announced Nov 2021 |
|
Child element |
£2,830 |
£2,845 |
Announced Nov 2021 |
|
Disabled child element |
£3,415 |
£3,435 |
Announced Nov 2021 |
|
Severely disabled child element |
£4,800 |
£4,825 |
Announced Nov 2021 |
|
Child benefit (per week) |
|
|||
Eldest/only child |
£21.05 |
£21.15 |
Announced Nov 2021 |
|
Other children |
£13.95 |
£14.00 |
Announced Nov 2021 |
|
Guardian's allowance |
£17.90 |
£18.00 |
Announced Nov 2021 |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
|
---|---|---|---|---|---|
Pensions allowances | |||||
Lifetime Allowance limit |
£1,073,100 |
£1,073,100 |
£1,073,100 |
||
Annual Allowance limit |
£40,000 |
£40,000 |
£40,000 |
||
Tapered Annual Allowance |
From £4,000 to £40,000 |
From £4,000 to £40,000 |
From £4,000 to £40,000 |
||
Money Purchase Annual Allowance |
£4,000 |
£4,000 |
£4,000 |
||
Tax free savings accounts |
|||||
Individual Savings Account (ISA) subscription limit |
£20,000* *Of which £4,000 may be saved into a Lifetime ISA |
£20,000* *Of which £4,000 may be saved into a Lifetime ISA |
£20,000* *Of which £4,000 may be saved into a Lifetime ISA |
||
Junior ISA subscription limit |
£9,000 |
£9,000 |
£9,000 |
||
Child Trust Fund (CTF) subscription limit |
£9,000 |
£9,000 |
£9,000 |
||
Insurance Premium Tax |
|||||
Standard rate |
12% |
12% |
12% |
||
Higher rate |
20% |
20% |
20% |
||
Capital Gains Tax |
|||||
Main rates for individuals |
10% / 20% |
10% / 20% |
10% / 20% |
||
Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest) |
18% / 28% |
18% / 28% |
18% / 28% |
||
Main rate for trustees and personal representatives |
20% |
20% |
20% |
||
Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief) |
28% |
28% |
28% |
||
Annual Exempt Amount (AEA) for individuals and personal representatives |
£12,300 |
£12,300 |
£12,300 |
||
AEA for most trustees |
£6,150 |
£6,150 |
£6,150 |
||
Rate on gains subject to entrepreneurs’ relief |
10% |
10% |
10% |
||
Rate on gains subject to investors’ relief |
10% |
10% |
10% |
||
Business Asset Disposal Relief (formerly Entrepreneurs’ relief): lifetime limit on gains for entrepreneurs |
£10,000,000 |
£1,000,000 |
£1,000,000 |
||
Investors’ relief: lifetime limit on gains for external investors |
£10,000,000 |
£10,000,000 |
£10,000,000 |
||
Inheritance tax |
|||||
Rate (for estates) |
40% |
40% |
40% |
||
Reduced rate (for estates leaving 10% or more to charity) |
36% |
36% |
36% |
||
Rate (for chargeable lifetime transfers) |
20% |
20% |
20% |
||
Nil rate band limit |
£325,000 |
£325,000 |
£325,000 |
||
Residence nil rate band limit |
£175,000 |
£175,000 |
£175,000 |
||
Taper threshold for residence nil-rate band |
£2,000,000 |
£2,000,000 |
£2,000,000 |
||
Stamp Duty Land Tax - residential property |
|||||
Standard Rate (on portion of value above threshold) |
|||||
£0 to £125,000 |
0% |
0% |
0% |
||
£125,000 to £250,000 |
2% |
2% |
2% |
||
£250,000 to £925,000 |
5% |
5% |
5% |
||
£925,000 to £1,500,000 |
10% |
10% |
10% |
||
£1,500,000 + |
12% |
12% |
12% |
||
Rate (on portion of value above threshold) on or after 1 April 2016 if purchase is of an additional residential property |
|||||
£0 to £125,000 |
3% |
3% |
3% |
||
£125,000 to £250,000 |
5% |
5% |
5% |
||
£250,000 to £925,000 |
8% |
8% |
8% |
||
£925,000 to £1,500,000 |
13% |
13% |
13% |
||
£1,500,000 + |
15% |
15% |
15% |
||
Rates for first-time buyers purchasing properties worth £500,000 or less |
|||||
£0 to £300,000 |
0% |
0% |
0% |
0% |
|
£300, to £500,000 |
5% |
5% |
5% |
5% |
|
£500,000 + |
Standard rates |
Standard rates |
Standard rates |
Standard rates |
|
Stamp Duty Land Tax - non-residential property |
|||||
0 to £150,000 |
0% |
0% |
0% |
||
£150,000 to £250,000 |
2% |
2% |
2% |
||
£250,000 + |
5% |
5% |
5% |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Corporation tax rates |
|
|||
Main rate |
19% |
19% |
19% |
|
Value Added Tax |
|
|||
Standard rate |
20% |
20% |
20% |
|
Reduced rate |
5% |
5% |
5% |
|
Zero rate items |
0% |
0% |
0% |
|
VAT registration threshold |
£85,000 |
£85,000 |
£85,000 |
|
VAT deregistration threshold |
£83,000 |
£83,000 |
£83,000 |
Tax/Allowance |
2020/21 |
2021/22 |
2022/23 |
Further Information |
---|---|---|---|---|
Full new flat rate State Pension(per week) |
£175.20 |
£179.60 |
£185.15 |
Income tax rates and order of tax
Gift aid donations by individuals: the facts
Reduce the impact of the high income child benefit charge
Income tax personal allowance: the facts
Domicile status for individuals: the facts
Income tax personal allowance: planning ideas
Transferable nil rate band: planning ideas
Normal expenditure out of income exemption
Inheritance Tax potentially exempt transfers
Family investment companies
Inheritance Tax meets Child Benefit Tax
Inheritance Tax taper relief
Inheritance tax and pensions
Gifting guidance for attorneys and deputies
Transferable nil rate band: the facts
Individual savings accounts (ISAs): planning ideas
Individual Savings Accounts (ISAs): the facts
Lifetime allowance: the facts
Money purchase annual allowance (MPAA)
Annual allowance for pension savings
Tapered annual allowance planning ideas and potential pitfalls
Tapered annual allowance
© Prudential 2022
"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.