Income tax rates and allowances
| 2021-2022 | 2022-23 | |
| Personal allowance for people born after 5 April 1948 | £12,570 | £12,570 |
| Income limit for personal allowance (1) | £100,000 | £100,000 |
Personal Savings Allowance: Basic rate taxpayer Higher rate taxpayer Additional rate taxpayer |
£1000 £500 £0 |
£1000 £500 £0 |
| Dividend allowance at 0% | £2000 | £2000 |
| Transferable tax allowance for married couples and civil partners | £1260 | £1260 |
| Rent-A Room limit | £7500 | £7500 |
CAPITAL GAINS TAX
2022-23 (per person) First £12,300 – exempt Tax at 10/20% (see notes 1 & 2)
- CGT at lower rate where total taxable gains and income are less than the
upper limit of income tax basic rate.
- 8% surcharge for carried interest and gains on residential property, excluding main residence.
- The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age or date of birth.
- Available to spouses/civil partners born after 5 April 1935. This allowance is 10% of the personal allowance for those born after 5 April 1938. It allows a spouse or civil partner who is not liable to income tax above the basic rate, to transfer this amount of their personal allowance to their spouse/civil partner. The recipient must not be liable to tax above the basic rate. The recipient is eligible to a tax reduction of 20% of the transferred amount. More information can be found here; https://www.gov.uk/marriage-allowance.
Income Tax Allowances in England/Wales/Ireland
Income Tax Allowances for tax year 2022/23
Band | Taxable Income | Tax Rate |
Personal Allowance | Up to £12,570 | 0% |
Basic Rate | £12,571-£37,700 | 20% |
| Higher Rate | £37,701 to £150,000 | 40% |
| Additional Rate | over £150,000 | 45% |
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Income Tax Allowances in Scotland
Income Tax Allowances for Scottish tax year 2022/23
Band | Taxable Income | Scottish Tax Rate |
Personal Allowance | Up to £12,570 | 0% |
Starter Rate | £12,571-£14,667 | 19% |
Basic Rate | £14,668-£25,296 | 20% |
Intermediate Rate | £25,297-£43,662 | 21% |
Higher Rate | £43,663 to £150,000 | 41% |
Top Rate | over £150,000 | 46% |
