Income Tax & Tax Rates

Current tax rates and allowances.

UK excluding Scottish taxpayers’ non-dividend,
non-savings income
2022/232021/22
20% basic rate on first slice of taxable income up to:£37,700£37,700
40% higher rate on next slice of taxable income over:£37,700£37,700
45% additional rate on taxable income over:£150,000£150,000

All UK taxpayers2022/232021/22
Starting rate at 0% – on band of savings income up to**£5,000£5,000
Personal savings allowance at 0% tax rate:
- Basic rate taxpayers£1,000£1,000
- Higher rate taxpayers£500£500
- Additional rate taxpayers£0£0
Dividend allowance at 0% tax - all individuals£2,000£2,000
Tax rates on dividend income:
- Basic rate taxpayers8.75%7.5%
- Higher rate taxpayers33.75%32.5%
- Additional rate tax payers39.35%38.1%

Trusts2022/232021/22
Standard rate band generally£1,000£1,000
Rate applicable to trusts: Dividends39.35%38.1%
Other income (rate applicable to trusts)45%45%

Non-domicile remittance basis charge2022/232021/22
After UK residence in at least 7 of the last 9 tax years£30,000£30,000
After UK residence in at least 12 of the last 14 tax years£60,000£60,000

** Not available if taxable non-savings income exceeds the starting rate band.

Scottish income tax rates and bands

Scottish taxpayers – non-dividend, non-savings income2022/232021/22
19% starter rate on taxable income up to£2,162£2,097
20% basic rate on next slice up to£13,118£12,726
21% intermediate rate on next slice up to£31,092£31,092
41% higher rate on next slice up to£150,000£150,000
46% top rate on income over£150,000£150,000

 

Child Benefit Charge

High Income Child Benefit Charge1% of benefit per £100 of adjusted net income between
£50,000 and £60,000

Main Personal Allowances and Reliefs

Personal Allowance (PA)2022/232021/22
Personal allowance *£12,570£12,570
Married couple's / civil partner’s transferable allowance £1,260£1,260
Married couple’s / civil partner’s allowance
at 10% ** (if at least one born before 6/4/35)
- maximum£9,415£9,125
- minimum£3,640£3,530
Blind person’s allowance£2,600£2,520
Rent-a-room relief£7,500£7,500
Property allowance£1,000£1,000
Trading allowance£1,000£1,000

* Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000.

** Reduced by £1 for every £2 of adjusted net income over £31,400 (£30,400 for 2021/22), until the minimum is reached.

 

Non-domicile remittance basis charge after UK residence in at least

Non-domicile remittance basis charge2022/232021/22
After UK residence in at least 7 of the last 9 tax years£30,000£30,000
After UK residence in at least 12 of the last 14 tax years£60,000£60,000
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