15th March 2023 by David Ewens
How much income can you receive before paying tax?
- 2023/24 – £12,570
- you start to lose this allowance when annual income exceeds £100,000
How much income can you receive before paying higher rate tax (40%)?
- 2023/24 – £50,270
How much income can you receive before paying additional rate tax (45%)?
- 2023/24 – £125,140
How much dividend income can you receive before paying tax?
- 2023/24 – £1,000
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 2023/24 annual ISA limit is £20,000
- The 2023/24 Junior ISA annual limit is £9,000
Capital Gains Tax (CGT)
- The Annual tax exempt Amount of CGT for individuals is £6,000 for the 2023/24 tax year
- Basic rate taxpayers pay 10% (18% on property sale)
- Higher rate taxpayers pay 20% (28% on property sale)
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 is being scrapped, but maximum Pension Commencement Lump Sum (“Tax Free Cash”) is being frozen at £268,275.
- Annual Allowance for pensions is £60,000 from 6th April 2023.
- “Threshold Income”, before annual pension allowance starts to reduce stands at £200,000. “Adjusted Income” stands at £260,000.
- The Money Purchase Annual Allowance for those who have flexibly accessed their pensions is increasing from £4,000 to £10,000 from 6th April 2023. You will be able to contribute £10,000 (gross) in a tax year, even if you have previously “flexibly” accessed a pension. You still need to earn at least £10,000 for this to work.
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.