Income Tax
| Bands | 2022-23 | 2021-22 |
| Savings starting rate – 0%* | £1 – £5,000 | £1 – £5,000 |
| Basic rate 20% | £1 – £37,700 | £1 – £37,700 |
| Higher rate 40% | £37,701 – £150,000 | £37,701 – £150,000 |
| Additional rate 45% | Over £150,000 | Over £150,000 |
| Scottish rates | ||
| Starter rate 19% | £1 – £2,162 | £1 – £2,097 |
| Basic rate 20% | £2,163 – £13,118 | £2,098 – £12,726 |
| Intermediate rate – 21% | £13,119 – £31,092 | £12,727 – £31,092 |
| Higher rate – 41% | £31,093 – £150,000 | £31,093 – £150,000 |
| Additional rate – 46% | Over £150,000 | Over £150,000 |
| Welsh rates | ||
| Starter rate 0%* | £1 – £5,000 | £1 – £5,000 |
| Basic rate 20% | £1 – £37,700 | £1 – £37,700 |
| Higher rate – 40% | £37,701 – £150,000 | £37,701 – £150,000 |
| Additional rate – 45% | Over £150,000 | Over £150,000 |
* The savings starting rate does not apply if non-savings income exceeds £5,000.
Income tax in Scotland and Wales is payable on non-savings and non-dividend income.
| 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% |
| Personal savings allowance | ||
| – basic rate taxpayers | £1,000 | £1,000 |
| – higher rate taxpayers | £500 | £500 |
| Reliefs | 2022-23 | 2021-22 |
| Personal allowance | £12,570 | £12,570 |
| Registered blind person’s allowance | £2,600 | £2,520 |
| Income limit for personal allowance* | £100,000 | £100,000 |
* The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000.
| Married couple allowance – tax relief given at 10% | ||
| – Born before 6 April 1935 | £9,415 | £9,125 |
| – Minimum amount* | £3,640 | £3,530 |
| – Income limit | £31,400 | £30,400 |
| – Marriage allowance* | £1,260 | £1,260 |
*A tax payer can transfer up to £1,260 (2021-22: £1,260) of their unused personal allowance to a spouse or civil partner who is not a higher rate taxpayer.
| High Income Child Benefit Charge* on income over | £50,000 | £50,000 |
* The tax charge is levied at the rate of 1% of the full child benefit award for each £100 that income exceeds £50,000, up to a maximum of 100% of the child benefit claimed.
Taxpayers can choose whether to continue receiving child benefit and pay the tax charge or may opt out of receiving the child benefit.
There is a cap on certain Income Tax reliefs of the greater of £50,000 or 25% of income.
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