Client Login
   0114 2588899       info@fogwilljones.co.uk

Tax Tables

Putting the facts at your fingertips


TAX TABLES

Income Tax

Rates: individuals

Taxable income

Dividend income

Other savings

Non-Savings

2022/23

Starting rate band for savings

£0-5,000

N/A

0%

N/A

Basic rate band

£0-37,700

8.75%

20%

20%

Higher rate band

£37,701-150,000

33.75%

40%

40%

Additional rate band

Excess

39.35%

45%

45%

Dividends are deemed to be the top slice of income in computing the tax liability, followed by other savings income. If the remittance basis of taxation is claimed, foreign dividend income is taxed at the rate applicable to other income. The Scottish Parliament and Welsh Assembly have power to vary the income tax rate for income other than savings or dividends. The rates above apply to the rest of the UK.

Allowances: individuals

2022/23

Personal Allowance (note 1)

£12,570

100%

Married Couple’s Allowance (note 2)

£9,415

10%

Marriage Allowance (note 3)

£1,260

100%

Blind Person’s Allowance

£2,600

100%

Savings Allowance - Higher rate taxpayers

£500

100%

Savings Allowance - Basic rate taxpayers

£1,000

100%

Dividend Allowance

£2,000

100%

Notes: (1) Personal allowances for those with taxable income in excess of £100,000 are reduced by £1 for every £2 of taxable income in excess of £100,000. (2) The allowance is reduced by 50% of the excess of the total income above £31,400 (2021/22 - £30,400). The minimum Married Couple’s Allowance after such reduction, if applicable, is £3,640 (2021/22 - £3,530). The Married Couple’s Allowance is only available where either spouse was born before 6 April 1935. (3) An individual may transfer up to this amount of their unused Personal Allowance to their spouse/civil partner provided that the recipient does not pay tax at the higher or additional rates.

Rates: UK trusts

Dividend income

Other income

Life interest trusts and estates in administration

8.75%

20%

Discretionary trusts, subject to a standard rate band of £1,000

39.35%

45%

National insurance

National insurance contributions

Class 1 employees

 

2022/23

Employed (Class 1)

Weekly earnings Rate

Primary contributions (employees)

£0-190 Nil

 

£191 - £967 13.25%
  Over £967 3.25%
Secondary contributions (employers) Over £175 15.05%

An annual allowance of £4,000 (2021/22 - £4,000) is available to offset against an employer’s Class 1 secondary liability with certain restrictions. Employers pay 15.05% (2021/22 -13.8%) Class 1A/1B contributions on the cost of benefits in kind.

Self-employed
Class 2 contributions are £3.15 (2021/22 - £3.05) per week unless annual profits do not exceed £6,725 (2021/22 - £6,515). Class 4 contributions are 10.25% (2021/22 – 9%) of annual profits between £9,880 and £50,270 (2021/22 - between £9,568 and £50,270), and 3.25% thereafter. From 6 April 2023, the increases of 1.25% to National Insurance will be split into a separate Health and Social Care Levy, with NIC rates returning to their previous levels.

Investments & Savings

Enterprise Investment Schemes and Venture Capital Trusts

Income tax relief and maximum qualifying investment per year

Seed Enterprise Investment Scheme (“SEIS”)

50%

£100,000

Enterprise Investment Scheme (“EIS”)

30%

£1,000,000

Venture Capital Trust (“VCT”) 30% £200,000

The minimum period of ownership necessary to avoid withdrawal of income tax relief is three years for EIS and SEIS investments, and five years for VCT investments. For EIS investments, the limit is doubled to £2 million, where the investment is in ‘knowledge-intensive’ companies.

Capital gains tax relief
Any gain on investment in an EIS or SEIS company on which income tax relief has been given will be exempt from capital gains tax on a subsequent disposal after three years, subject to certain conditions. All gains on the disposal of shares in VCTs are exempt, up to the maximum qualifying investment. 50% of capital gains reinvested into a subscription for shares that qualifies for SEIS income tax relief in the same or following tax year are exempt from capital gains tax. The relief is withdrawn in circumstances where the related SEIS income tax relief is withdrawn.

Capital gains tax deferral (EIS only)
Tax on capital gains can be deferred if the gains are reinvested into a subscription for qualifying (broadly, EIS) shares, without limit. Gains eligible to be reinvested are those realised within three years before and one year after the date of the subscription for the EIS shares. The deferred tax falls due when the related EIS shares are either disposed of or cease to be qualifying shares.

Individual Savings Accounts (ISAs)

Annual subscription limits

2022/23

ISA

£20,000

Junior ISA

£9,000

Lifetime ISA (1) (part of ISA subscription limit) £4,000
Help to Buy ISA (2) 200 pcm

Notes:
(1) The Lifetime ISA allows individuals to save up to £4,000 per annum with a contribution from the government of an additional 25%. The funds may be drawn to purchase a first home or at any time after the age of 60. (
2) The Help To Buy ISA enables first time house buyers to save funds towards the purchase of their first home. The amounts saved receive a government bonus of 25% up to a maximum bonus of £3,000. Help To Buy ISAs were closed to new applicants from 1 December 2019.

Pensions

2022/23

Lifetime Allowance limit

£1,073,100

Annual allowance £40,000 
Money Purchase Annual Allowance £4,000

Notes:
(1) The annual allowance is tapered by £1 for every £2 of adjusted income in excess of £240,000 (2021/22: £240,000) subject to a minimum of £4,000 (2021/22: £4,000). If relief is not used in a year it may be carried forward up to 3 years provided the individual was a member of a registered scheme in the year to which the unused relief relates.
(2) The money purchase annual allowance relates to those individuals who have already started to draw pension benefits. There is no ability to carry forward unused allowances from the previous 3 years.

Capital Gains Tax

Capital gains tax

2022/23

Individuals - gains within basic rate band

10%

Individuals - gains exceeding basic rate band (2)

20%

UK Trusts and estates in administration

20%

Notes:
(1) The disposal of residential property not qualifying for main residence relief attracts a surcharge of 8%. This also applies to carried interest. A capital gains tax return for disposals of UK residential property by UK resident individuals or trustees must be submitted within 60 days of completion together with a payment on account of the tax due.
(2) The remaining basic rate band is calculated as £37,700 (2021/22: £37,700) less taxable income and any gains on which business asset disposal relief has been claimed.
(3) Gains matched to capital payments from certain offshore trusts are chargeable at rates applicable to individuals plus a maximum supplementary charge of 60% of the tax.
(4) Non-resident individuals and trustees are subject to capital gains tax on direct and indirect disposals of all UK immovable property (subject to rebasing and certain reliefs). The same applies to non-resident companies except they will be subject to corporation tax rather than capital gains tax. A capital gains tax return for any direct or indirect disposals of UK immovable property by non-resident individuals or trustees must be submitted within 60 days of completion together with a payment on account of the tax due.

Annual Exemption

2022/23

Individuals

£12,300

Trustees

£6,150

The annual exemption available to trusts is normally divided equally between all those UK resident trusts made by the same settlor after 6 June 1978. The minimum exemption per trust is one tenth of the full annual exemption for individuals.

Indexation Allowance
Companies receive Indexation Allowance on their capital gains. Indexation has been frozen from 1 January 2018 with relief due only with reference to the Retail Price Index at December 2017.

Business Asset Disposal Relief (previously Entrepreneurs’ Relief)

2022/23

Capital gains tax rate

10%

Lifetime limit

£1 million

Investors' Relief

2022/23

Capital gains tax rate

10%

Lifetime limit

£10 million


Inheritance Tax

Rates

2022/23

Transfers on death

40%

Transfers on death - reduced rate (1)

36%

Chargeable lifetime transfers 20%
Nil rate band limit £325,000
Residence nil rate band limit (2) £175,000

Notes:
(1) The reduced rate applies to taxable estates where 10% or more of the estate is left to charity. (2) The residence nil rate band is withdrawn by £1 for every £2 that the net value of the estate exceeds £2 million.

Potentially exempt transfers
Inheritance tax does not generally arise on lifetime transfers between individuals provided that the donor survives the gift by at least 7 years.

Reduced tax charge on gifts within seven years of death:

 

0 – 3

3 – 4

4 – 5

5 – 6

6 – 7

Transfers on death

100 80 60

40

20

Credit is given for tax paid on lifetime transfers within seven years of death. If the value of the lifetime transfer falls within the nil rate band, the above relief may have no effect.

Trusts
Transfers to trusts (other than charitable trusts, trusts for people who are disabled and trusts established on death) are taxed as lifetime transfers.Discretionary trusts and most trusts created on or after 22 March 2006 are subject to an IHT charge of up to 6% every 10 years, and exit charges.

Exemptions and reliefs

2022/23

Normal expenditure out of income

Exempt

Annual exemption

£3,000

Small gifts to same person – per year £250
Spouses and civil partners both with UK domicile Exempt
Spouses and civil partners where one is not UK domiciled £325,000

Marriage gifts made by:

– parent

£5,000

– grandparent

£2,500

– other person £1,000
Gifts to charities and qualifying political parties Exempt
Transfers of qualifying heritage assets (subject to various undertakings) Exempt

Agricultural property relief

Transfers with vacant possession (or right to obtain within 12 months)

100%

Land let under a tenancy for more than 12 months made on or after 1 September 1995

100%

Most other cases 50%

Business property relief (subject to exclusions)

Unincorporated businesses

100%

Unquoted shares

100%

Quoted shares (controlling holding) 50%
Land, buildings, machinery or plant used by qualifying businesses 50%

Corporation Tax

Rates

From 1 April 2022

Main rate

19%

The main rate will increase to 25% from 1 April 2023. A small profits rate will also be introduced from the same date with an initial rate of 19%.

Tax Payments

Quarterly payments on account – very large companies and large companies

Period from start of accounting period
 

Large companies

Very large companies

First 6 months and 14 days 2 months and 14 days

Second

9 months and 14 days

5 months and 14 days

Third

12 months and 14 days

8 months and 14 days

Fourth

15 months and 14 days

11 months and 14 days


Small & medium companies

Period from end of accounting period

Due date 9 months and 1 day

Growing companies do not have to pay by instalments in the period in which they become large if their profits are less than £10 million. A large company has profits exceeding £1.5 million. A very large company has profits exceeding £20 million. Adjustments are made to these limits for associated companies.

Tax returns
The filing date is twelve months after the end of the accounting period. Special rules apply for periods of account of longer than twelve months.

Value Added Tax

Rates

Standard

20 %

Reduced

5%


Thresholds

From 1 April 2022

Registration threshold (for supplies in previous 12 months or next 30 days)*

£85,000

Deregistration threshold*

£83,000

Cash accounting scheme

£1,350,000

Annual accounting scheme

£1,350,000

Flat rate scheme

£150,000

De minimis limits for partial exemption (provided exempt input tax is less than 50% of total input tax)

625 pcm

Stamp Duty & Stamp Duty Reserve Tax

Shares and marketable securities

Standard Rate

0.5%

Higher Rate

1.5%

Transfers of shares or marketable securities traded on recognised growth markets are not subject to stamp taxes. Stamp duty reserve tax does not apply to transfers of holdings in unit trusts or open ended investment companies, except for non pro-rata redemptions in specie.

Stamp Duty Land Tax

Stamp Duty Land Tax does not apply in Scotland, which operates a separate Land and Buildings Transaction Tax, or in Wales, which operates a separate Land Transaction Tax.

Residential property

Consideration (incl VAT where applicable)

Within each band

£0-£125,000

Nil

£125,001-£250,000

2%

£250,001-£925,000

5%

£925,001-£1,500,000

10%

Over £1,500,000

12%

The rate of SDLT is increased by 3% for purchases of residential property where the purchaser already owns at least one residential property, or for all purchases by companies and most trusts. A charge of 15% applies to purchases of residential property by ‘non-natural persons’ (predominantly companies) for consideration in excess of £500,000 subject to certain exclusions. The rate of SDLT is increased by 2% for all purchases of residential property by non-UK residents, in addition to other SDLT payable. First-time buyers are exempt from SDLT on the first £300,000 of consideration on properties worth up to £500,000.

Non-residential property

Consideration (incl VAT where applicable)

Within each band

£0-£125,000

Nil

£125,001-£250,000

2%

More than £250,000

5%


Lease rentals (residential and non-residential)

Net present value of lease payments

Within each band

£0 – £125,000*

Nil

£125,001* – £5,000,000

1%

More than £5,000,000**

2%


* Nil band is £150,000 for non-residential property *
* Applies only to non-residential property, otherwise the rate is 1%.

Returns and payments
Stamp duty returns must be filed within 14 days of the effective date of the transaction which is also the due date for payment of any tax.

Top