A guide to UK tax brackets 2022/23
This page relates to the 2022/23 tax year. View tax rates and tax brackets for 2023/24 here.
The tax brackets for 2022/23 saw many rates remain unchanged from the previous year, following the spring budget on March 23, 2022. This included Inheritance Tax and Capital Gains Tax. However, there were also some other important changes, notably an extension to the time in which super deductions apply to Capital Allowances.
To find out more about these rates and current changes to tax brackets, contact us today.
Below are the key tax brackets and tax rates that apply for the tax year 2022/23:
Tax Brackets 2022/23
Income Tax Brackets
Income tax rates and bands
| 2022/23 | 2021/22 | ||
| Band | Rate | Band | Rate |
| £0 – 37,700 | 20% | £0 – 37,500 | 20% |
| £37,701 – 150,000 | 40% | £37,501 – 150,000 | 40% |
| Over £150,000 | 45% | Over £150,000 | 45% |
Please note: In Scotland and Wales, income tax rates on income other than savings and dividend income have been devolved
Savings Income tax allowances
| 2022/23 and 2021/22 | |
| Savings allowance basic rate | £1,000 |
| Savings allowance higher rate | £500 |
Please note: A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.
Dividend Income tax brackets
| 2022/23 | 2021/22 | |
| Dividend allowance | £2,000 | £2,000 |
| Dividend ordinary rate | 8.75% | 7.5% |
| Dividend upper rate | 33.75% | 32.5% |
| Dividend additional rate | 39.35% | 38.1% |
Tax Brackets for Income Tax Reliefs
| 2022/23 | 2021/22 | |
| Personal allowance | £12,570 | £12,570 |
| Personal allowance income limit | £100,000 | £100,000 |
| Marriage allowance Transferable between certain spouses where neither pay tax above the basic rate | £1,260 | £1,260 |
| Married couple’s allowance (relief given at 10%) | £9,415 | £9,125 |
| Either partner born before 6 April 1935 | ||
| Minimum amount | £3,640 | £3,530 |
| Income limit | £31,400 | £30,400 |
| Blind persons allowance | £2,600 | £2,520 |
Car, Van and Fuel Benefit
| 2022/23 | |
| CO2 emissions g/km | % of list price taxed |
| 0 | 2 |
| 1 – 50 | |
| Electric Range – 130 or more | 2 |
| Electric Range – 70 – 129 | 5 |
| Electric Range – 40 – 69 | 8 |
| Electric Range – 30 – 39 | 12 |
| Electric Range – under 30 | 14 |
| 51 – 54 | 15 |
| For every extra 5 | +1 |
| 160 and above | 37 |
For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.
| 2022/23 | |
| Car fuel benefit | £25,300 |
| Van benefit | £3,600 |
| Van fuel benefit | £688 |
National Insurance
The rate of NI contributions you pay will change for one year From April 2022, increasing by 1.25 percentage points to be spent on the NHS and social care across the UK.
At Spring Statement 2022 an increase in National Insurance thresholds for the 2022 to 2023 tax year was announced. These changes will take effect form July 2022.
Tax brackets 2022/23 – Class 1 (employed) rates
For employees
| For employees | |
| Up to £190 | 0% |
| £190.01 – £967 | 13.25% |
| Over £967 | 3.25% |
For employers
| For employers | |
| Up to £175 | 0% |
| Over £170 | 15.01% |
Please note: Entitlement to contribution-based benefits for employees retained for earnings between £123 and £190 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £967 per week (this is £242 starting 6 June 2022).
| Class 1A (employers) | On employee taxable benefits | 15.05% |
| Class 1B (employers) | On PAYE Settlement Agreements | 15.05% |
| Class 2 (Self-employed) | Flat rate per week Small profits threshold | £3.15 £11,908 per annum |
| Class 3 (voluntary) | Flat rate per week | £15.85 |
| Class 4 (self-employed) | On profits between £11,908 – £50,270 Excess over £50,270 | 10.25% 3.25% |
Stamp Duty Land Tax
Please note: Land and buildings in England and N. Ireland. Residential rates may be increased by 3% where further residential properties are acquired.
| Residential Stamp Duty rates | |
| Property or lease premium or transfer value | SDLT rate |
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
First-time Buyer relief may be applicable to residential purchases up to £500k
| Non-residential Stamp Duty rates | |
| Property or lease premium or transfer value | SDLT rate |
| £0 – £150,000 | Zero |
| £150,001 to £250,000 | 2% |
| Over £250,000 | 5% |
Capital Gains Tax
| Capital Gains Tax | 2022/23 | 2021/22 |
| Individuals | ||
| Exemption | £12,300 | £12,300 |
| Standard rate | 10% | 10% |
| Higher/additional rate | 20% | 20% |
| Trusts | ||
| Exemption | £6,150 | £6,150 |
| Rate | 20% | 20% |
Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.
Business Asset Disposal Relief
The first £1m of qualifying gains are charged at 10%.
Inheritance Tax Brackets
| Death rate | Lifetime rate | Chargeable transfers 2022/23 and 2021/22 |
| Nil | Nil | £0 – £325,000 (nil rate band) |
| 40% | 20% | Over £325,000 |
A further nil rate band of £175,000 may be available in relation to current or former residences.
Corporation Tax Brackets
| Rate | Rate | ||
| Year to 31.02.23 | 19% | Year to 31.03.22 | 19% |
Capital Allowances
| Corporation tax super-deduction on certain plant and machinery (up to 31.03.2023) | 130% |
| First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km | 100% |
| Corporation tax FYA on long-life assets, integral features of buildings, etc. (up to 31.03.2023) | 50% |
| Annual Investment Allowance (AIA) | £1,000,000 (£200,000 from 01.04.2023) – excludes cars |
Writing Down Allowance
| Long-life assets, integral features of buildings, cars over 50g/km | 6% |
| Other plant and machinery | 18% |
| Structures and Buildings Allowance | 3% |
Pensions
| 2022/23 | 2021/22 | |
| Lifetime Allowance Limit | 1,073,100 | £1,073,100 |
| Annual Allowance Limit | £40,000 | £40,000 |
| Money Purchase Annual Allowance | £4,000 | £4,000 |
Value Added Tax
| From 01.04.22 | From 01.04.21 | |
| Standard rate | 20% | 20% |
| Reduced rate | 5%* | 5% |
| Annual Registration Limit | £85,000 | £85,000 |
| Annual Deregistration Limit | £83,000 | £83,000 |
*12.5% for hospitality and tourism from 1 October 2021 – 31 March 2022.
Selected Rates
| Weekly benefit | 2022/23 | 2021/22 |
| Basic State Pension | £185.15 | £179.60 |
| Old State Pension | £141.85 | £137.60 |
| Statutory pay standard rates | 2022/23 | 2021/22 |
| Average weekly earnings | £123 or over | £120 or over |
| Sick Pay | £99.35 | £96.35 |
| Maternity/Adoption Pay | £156.66 | £151.97 |
| Shared Parental Pay | £156.66 | £151.97 |
| Paternity Pay | £156.66 | £151.97 |
National Living Wage and National Minimum Wage
| Age | NLW | 21 – 22 | 18 – 20 | 16 – 17 | Apprentices |
| From 1 April 2022 | £9.5 | £9.18 | £6.83 | £4.81 | £4.81 |
Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 23 and over
Contact us today for more information
Key Tax Dates and Deadlines 2022/23
April 2022
- 05/04/22: The 2021/22 tax year ends
- 06/04/22: The 2022/23 tax year begins
July 2022
- 31/06/22: The second Payment on Account (POA) re Income Tax 2021/22
- 05/06/22: The deadline for Self Assessment registration re notifying chargeability of Income Tax/Capital Gains Tax for the 2021/22 tax year
October 2022
- 19/10/22: The deadline for postal payments re CIS, Class 1 B NICs and PAYE to HMRC
- 22/10/22: The deadline for electronic remittance re CIS, Class 1 B NICs and PAYE to HMRC
- 31/10/22: The deadline for HMRC to receive postal submission re Self Assessment tax returns for tax year ended 05/04/22
December 2022
- 31/12/2022: The due date for limited companies to file company accounts with Companies House 31 March 2022 year end
January 2023
- 14/01/2023: The income tax due date for CT61 period to 31/12/22
- 31 /01/2023: The deadline for filing Self Assessment tax returns for the tax year ended 05/04/2022 and 2021/22 CGT
- 31/01/2022: The balancing payment of tax due for 2021/22 and the first Payment on Account for Income Tax for 2022/23
April 2023
- 05/04/23: The 2022/23 tax year ends
- 06/04/23: The 2023/24 tax year begins
Click here for UK tax dates in relation to the 2023/24 tax year
*Please note:
For residential properties sold on or after 27 October 2021, Capital Gains Tax needs to be reported to HMRC and paid within 60 days of completion of a sale. Previously, for the period on or after 6 April 2020, this was within 30 days of completion.
Please note: all rates quoted are for guidance only and whilst are believed to be correct as of 6 April 2022. These rates may be subject to change. No responsibility for loss occasioned by any person acting/refraining from action because of this information can be accepted.
Contact us today for more information
Alexander & Co – Expert tax advice
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To speak to a corporate or personal tax advisor, please email our tax team today at info@alexander.co.uk or complete our online enquiry form, and we will be in touch shortly.
