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Spring Budget 2023: Essential tax rates

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A quick guide to the main tax rates and allowances updated in the Spring Budget on 15 March 2023 and the Autumn Statement on 17 November 2022, showing the main changes that will come in from 6 April 2023.

15th Mar 2023
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These are the main tax rates and allowances updated following the Spring Budget on 15 March 2023, reproduced with kind permission of Bloomsbury Professional.

Income tax rates

 

Taxable income (not dividends and not Scottish residents) 

£

Rate  

%

Tax  

£

Cumulative  

£

2023/24      
Savings: 0–5,000 0 Nil Nil
0–37,700 20 7,540.00 7,540.00
37,701–125,140 40 34,976.00 42,516.00
Over 125,140 45
2022/23      
Savings: 0–5,000 0 Nil Nil
0–37,700 20 7,540.00 7,540.00
37,701–150,000 40 44,920.00 52,460.00
Over 150,000 45

Tax rates for dividend income

 

Dividends within:  2023/24 2022/23
Basic rate band 8.75% 8.75%
Dividend allowance £1,000 £2,000
Higher rate band 33.75% 33.75%
Dividend allowance £1,000 £2,000
Additional rate band 39.35% 39.35%
Dividend allowance £1,000 £2,000

Personal allowances and reliefs

 

  2023/24 

£

2022/23 

£

Personal allowance  12,570 12,570
Income limit for personal allowance 100,000 100,000
Allowances for couples:     
Marriage allowance 1,260 1,260
Married couples: minimum (born before 6 April 1935) 4,010 3,640
Married couples: maximum (born before 6 April 1935) 10,375 9,415
Income limit for married couples’ allowance, born before 6 April 1935 34,600 31,400
Blind person’s allowance 2,870 2,600
Rent-a-room relief 7,500 7,500
Trading income allowance 1,000 1,000
Property income allowance  1,000 1,000
Savings allowance – basic tax band 1,000 1,000
Savings allowance – higher tax band 500 500
 

Pension allowances 

 

Tax year: 2023/24 

£

2022/23 

£

Annual allowance (AA) 60,000 40,000
AA tapered when adjusted income including pension contributions exceeds:  260,000  240,000
and net income excluding contributions exceeds:  200,000 200,000
Restricted annual allowance  10,000 4,000
Money purchase annual allowance (MPAA) 10,000 4,000
Lifetime allowance  ABOLISHED 1,073,100

Corporation tax rates

 

Year from 1 April 2023 2022
Main rate  25% 19%
Small profits rate 19% -
Small profits rate where profits don’t exceed: £50,000 -
Marginal relief lower limit £50,000 -
Marginal relief upper limit £250,000 -
Standard fraction 3/200 -

CGT rates and annual exemptions

 

Tax Year

Annual exempt amount

Tax rate paid by

Individuals, personal representatives (PRs) and trusts for disabled General trusts Individuals

within:

Trustees and PRs
    Basic rate band Higher tax bands  
£ £ % % %
2023/24 6,000 3,000 10 20 20
Residential property and carried interest     18 28 28
2022/23 12,300 6,150 10 20 20
Residential property and carried interest     18 28 28

NIC rates and thresholds

NIC: Class 1 primary monthly thresholds 

 
Employee (primary) 2023/24  

£

2022/23    

6 July to 22 April 23

 

£

2022/23 

6 April 22 to 5 July 22

 

£

Lower earnings limit (LEL) 533 533 533
Primary threshold (PT) 1,048 1,048 823
Upper earnings limit (UEL)  4,189 4,189 4,189

NIC: Class 1 secondary monthly thresholds 

 
Employer (Secondary) 2023/24  

£

2022/23    

£

Secondary threshold (ST) 758 758
Upper secondary threshold (UST) 4,189 4,189
Veteran’s upper secondary (VUS)  4,189 4,189
Freeport upper secondary 2,083 2,083
 

NIC: Class 2 rates and exception

 

Tax Year

Flat rate per week Share fishermen per week Volunteer development workers per week Small earnings exception/profit threshold
£ £ £ £
2023/24 3.45 3.80 6.15 6,725
2022/23 3.15 3.80 6.15 6,725
 

NIC: Class 3 rates

 

Tax Year Weekly rate
£
2023/24 (from 1 August 2023) 17.45
2022/23 15.85
 

NIC: Class 4 rates and thresholds

Tax Year

Main rate Additional rate Lower profits limit Upper profits limit
% % £ £
2023/24 9 2 12,570 50,270
2022/23 9.73 2.73 11,908 50,270

 

For more tax rates and for earlier years see Bloomsbury’s Tax Rates and Tables.

PracticeWEB 2023 Budget Report Covers

Replies (6)

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avatar
By Hugo Fair
15th Mar 2023 13:56

Thanks for speediness in publishing this ... but it would have been more useful and easier to assimilate if it had made clear what has changed from previous announcements ('what was new in the Budget') as opposed to what was already known to be changing from 6th April.

Rebecca's famous red pen circling the key figures would've sufficed!

Thanks (1)
By Charlie Carne
15th Mar 2023 14:10

The lifetime allowance on pensions for 2023/24 will be abolished (per today's budget) rather then increased to 1,800,00 (as shown in your tables above).

Thanks (1)
Replying to charliecarne:
Jake Smith, AccountingWEB
By Jake Smith
15th Mar 2023 14:12

Thanks Charlie, we're just amending that - it was a surprise to us!

Thanks (2)
avatar
By D V Fields
15th Mar 2023 14:13

The pension lifetime allowance has been abolished not increased to £1.8m, I believe.
PS now noted above.

Thanks (0)
avatar
By Jamie Thompson
15th Mar 2023 14:34

I believe the Restricted annual allowance is also £10k, and the threshold income is now £260k.

Thanks (1)
boat
By SouthCoastAcc
15th Mar 2023 16:26

but the 25% tax free lump is capped at the old limit, now that has been decoupled inflation will erode it away and by the time i retire it will probably be worthless

Thanks (1)