HMRC tax rates and allowances for 2022/23

Tax rates and allowances for 2022/23

¹ The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.

² The marriage allowance cannot be transferred to a recipient spouse liable to income tax at the higher or additional rate.

³ If non-savings taxable income exceeds the starting rate limit, the starting savings rate will not apply to savings income.

⁴ From 1 April 2023, the main rate of corporation tax will increase to 25% for profits in excess of £250,000. From the same date, a ‘small profits rate’ of 19% will apply to profits up to £50,000. For businesses with profits between £50,000 and £250,000, tax will be charged at the main rate, subject to marginal relief provisions which will provide a gradual increase in the effective corporation tax rate. The bank corporation tax surcharge will reduce from 8% to 3% from the same date, so that the overall corporation tax rate payable by banks will be 28%.

⁵ Stamp duty land tax is charged at a rate of 3% above the current stamp duty land tax residential rates from 1 April 2016 on purchases by individuals of additional residential properties (such as second homes and buy-to-let properties), and by non-natural persons (companies, partnerships including companies or collective investment schemes) of a residential property, even if they do not own another residential property.

⁶ For purchases by first-time buyers of property worth £500,000 or less from 22 November 2017, the stamp duty land tax rate for a property valued £0 – 300,000 is 0% and for a property valued £300,001 – 500,000 is 0% on the consideration up to £300,000 and 5% on the remainder.

⁷ The 15% rate applies to certain acquisitions of residential property by “non-natural persons” (a company, a partnership including a company or a collective investment scheme).

⁸ A 2% surcharge applies from 1 April 2021 on non-UK residents purchasing residential property in England and Northern Ireland (when combined with the additional 3% rate (see note 5 above), a 5% surcharge applies on non-UK residents purchasing additional residential properties).

⁹ A temporary reduction in SDLT applied to purchases of residential property between 8 July 2020 and 30 June 2021 pursuant to which a purchaser only paid SDLT on amounts above £500,000. Between 1 July 2021 and 30 September 2021, purchasers of residential property were only required to pay SDLT on amounts above £250,000. This relief temporarily replaced the relief for first-time buyers (see note 6 above).