How much income can you receive before paying tax?
- 2022/23 – £12,570
- 2023/24 – £12,570
- this level will be frozen until April 2028
- you start to lose this allowance when annual income exceeds £100,000
How much income can you receive before paying higher rate tax (40%)?
- 2021/22 – £50,270
- 2022/23 – £50,270
- this will be frozen until April 2028
How much income can you receive before paying additional rate tax (45%)?
- 2022/23 – £150,000
- 2023/24 – £125,140
- this will be frozen until April 2028
How much dividend income can you receive before paying tax?
- 2022/23 – £2,000
- 2023/24 – £1,000
- 2024/25 – £500
Tax on Dividends
- Basic rate taxpayers pay 8.75%
- Higher rate taxpayers pay 33.75%
- Additional rate taxpayers pay 39.35%
ISA contribution limits
- The annual ISA limit is £20,000
- The Junior ISA annual limit is £9,000
Capital Gains Tax (CGT)
- The Annual tax exempt Amount of CGT for individuals is £12,300 for the 2022/23 tax year
- This reduces to £6,000 from April 2023
- This further reduces to £3,000 from April 2024
Inheritance Tax (IHT)
- The Inheritance Tax nil-rate band will remain at £325,000 per person until April 2028
- The residence nil-rate band will remain at £175,000 until April 2028
- The residence nil-rate band taper will continue to start at £2 million
Pensions
- Lifetime Allowance for pensions is £1,073,100 in 2022/23. This is frozen until April 2028
- Annual Allowance for pensions is £40,000 in 2022/23. This is frozen until April 2028
- “Threshold Income”, before annual pension allowance starts to reduce stands at £200,000. “Adjusted Income” stands at £240,000. The highest possible annual allowance reduction is down to £4,000.
National Insurance Contributions (NICS)
- National Insurance thresholds are frozen until April 2028
Stamp Duty (SDLT)
- The recent increase in SDLT threshold from £125,000 to £250,000 will be reversed by March 2025
- The recent increase in SDLT for first time buyers from £300,000 to £450,000 will also be reversed by March 2025
Social Care Cap cost
- Implementation of the proposed £86,000 social care cost cap is to be further delayed from October 2023 to October 2025
Corporation Tax
- Corporation tax on company profits above £250,000 is once again due to rise from 19% to 25% from April 2023. Companies with profits below £50,000 will remain at 19% and there will be a tapered rise in tax level for profits between £50,000 and £250,000
Business VAT registration
- Turnover limit of £85,000 before VAT registration is required
- this threshold is frozen until April 2026
This blog is intended as information only and does not constitute advice in any way. The information contained herein could be wrong or may have changed by the time you read it so should not be relied upon in any way.