Page 27 - Budget Newsletter - March 2023

FACTS AND FIGURES

MAIN INCOME TAX ALLOWANCES

2022/23 2023/24
£ £
Personal allowance – standard 12,570 12,570
Personal allowance reduced if total income exceeds ∞ 100,000 100,000
Transferable tax allowance (marriage allowance) § 1,260 1,260
Property allowance 1,000 1,000

Trading allowance 1,000 1,000
Rent a room relief 7,500 7,500
Employment termination lump sum limit 30,000 30,000

∞ For 2022/23 and 2023/24 the reduction is £1 for every £2 additional income over £100,000. As
a result, there is no personal allowance if total income exceeds £125,140.
§ Available to spouses and civil partners born after 5 April 1935, provided neither party pays tax
at above basic rate.

INCOME TAX RATES (UK EXCLUDING SCOTTISH TAXPAYERS’ NON-DIVIDEND, NON-SAVINGS
INCOME)

2022/23 2023/24
£ £
Starting rate 0% 0%
Starting rate on savings income 1-5,000 1-5,000
Personal savings allowance (for savings income):
- Basic rate taxpayers 1,000 1,000
- Higher rate taxpayers 500 500
- Additional rate taxpayers Nil Nil
Basic rate 20% 20%
Higher rate - 40% 37,701-150,000 37,701-125,140
Additional rate on income over £150,000/£125,140 45% 45%
Discretionary & accumulation trusts (except dividends) ° 45% 45%
Discretionary & accumulation trusts (dividends) ° 39.35% 39.35%
Dividend nil rate band (dividend allowance) 1-2,000 1-1,000
Basic rate on dividends 8.75% 8.75%
Higher rate on dividends 33.75% 33.75%
Additional rate on dividends 39.35% 39.35%
High income child benefit charge 1% of benefit per £100 income
between £50,000 and £60,000

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