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Income Tax
Rates and bands (other than savings and dividend income)
Devolved Income Tax
Scotland rates and bands - tbc for 2022/23 in Scottish Budget on 9 December 2021
2022/23 Band £
0 - 37,700
37,701 - 150,000
Over 150,000
Rate %
20
40
45
2021/22
37,701 - 150,000
Over 150,000
2022/23
2021/22
2,098 - 12,726
12,727 - 31,092
31,093 - 150,000
Over 150,000
Band £
0 - 37,700
Rate %
20
40
45
Band £
0-xxx xxx - xxx
xxx - xxx
xxx - xxx
Over xxx
Rate %
- -
-
-
-
Band £
0 - 2,097
Rate %
19
20
21
41
46
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
Savings income
Savings allowance basic rate
Savings allowance higher rate
2022/23 and 2021/22
£1,000
£500
Wales rates and bands - tbc for 2022/23 in Welsh Budget on 20 December 2021
A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.
2022/23
2021/22
37,701 - 150,000
Over 150,000
Dividend income
Dividend allowance Dividend ordinary rate Dividend upper rate Dividend additional rate
Income Tax Reliefs
Personal allowance
Personal allowance income limit
Marriage allowance Married couple’s allowance
- minimum amount
- income limit Blind person’s allowance
Individual Savings Accounts
Overall investment limit
Junior account investment limit
Pensions
Lifetime Allowance limit
Annual Allowance limit
Money Purchase Annual Allowance
Rate %
20
40
45
%
Nil 15.05
Entitlement to contribution-based benefits for employees retained for earnings between £123 and £190 per week. The employer rate is 0% for certain military veterans, employees under 21 and apprentices under 25 on earnings up to £967 per week.
2022/23 2021/22
£2,000 £2,000 8.75% 7.5% 33.75% 32.5% 39.35% 38.1%
2022/23 2021/22
£12,570 £12,570
£100,000 £100,000
£1,260 £1,260 £9,415 £9,125
£3,640 £3,530
£31,400 £30,400 £2,600 £2,520
2022/23 2021/22
£20,000 £20,000
£9,000 £9,000
2022/23 2021/22
£1,073,100 £1,073,100
0-37,700 -
37,701 - 150,000 -
Over 150,000 -
National Insurance
Band £
Rate %
Band £
0-37,700
2022/23 Class 1 (employed) rates
Employee
Earnings per week
Up to £190
£190.01 - £967
Over £967 3.25
Class 1A (employers) Class 1B (employers) Class 2 (self-employed)
Class 3 (voluntary) Class 4 (self-employed)
Inheritance Tax
15.05% on employee taxable benefits
15.05% on PAYE Settlement Agreements
flat rate per week £3.15
small profits threshold £6,725 per annum
flat rate per week £15.85
10.25% on profits between £9,880 and £50,270 plus 3.25% on profits over £50,270
Employer
% Earnings per week
Nil Up to £175 13.25 Over £175
Corporation Tax
Year to 31.3.23
Rate %
19
£40,000
£4,000
Year to 31.3.22
£40,000
£4,000
Rate %
19
Death rate
Nil 40%
Lifetime rate
Nil 20%
Chargeable transfers
2022/23 and 2021/22
0 - £325,000 (nil rate band) Over £325,000
Different rates apply for ring-fenced (broadly oil industry) profit.
A further nil rate band of £175,000 may be available in relation to current or former residences.
Rates & Allowances
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