Income tax
The Chancellor announced that the starting rate tax band for savings income would be maintained at £5,000 for 2022-23. This will benefit those with savings income in excess of the personal allowance (£12,570), allowing a further £5,000 of savings income to be taxed at 0%. The savings allowance is not available if your other income is £17,570 or more.
Rishi also confirmed that dividend tax rates will increase by 1.25% from April 2022. The dividend allowance of £2,000 will remain the same, however, tax on dividends thereafter will increase from 7.5%, 32.5% and 38.1% for basic rate and higher rate and additional rate taxpayers to 8.75%, 33.75% and 39.35%. This will affect dividends paid to individuals on or after 6 April 2022. Trusts will also be affected with the dividend rate increasing in line with the additional rate to 39.35%.
Savings
The adult ISA subscription limit was maintained at £20,000 for 2022-23, rising with the consumer price index thereafter. Income from ISAs, both interest and dividends, is tax free.
Benefits in kind
The autumn 2021 Budget announced that both the car benefit charge and the van benefit charge will increase, from April 2022, in line with the consumer price index.
| Benefit |
|
|
|
|
Current rate |
|
|
|
New rate |
| Car fuel benefit |
|
|
|
|
£24,600 |
|
|
|
£25,300 |
| Van benefit |
|
|
|
|
£3,500 |
|
|
|
£3,600 |
| Van fuel benefit |
|
|
|
|
£669 |
|
|
|
£688 |
Capital gains tax
Since 6 April 2020 UK resident individuals, trustees and personal representatives of deceased persons who sell residential property which gives rise to a capital gains tax liability have been required to report and pay the tax within 30 days of completion.
In addition, non-UK residents have been required to deliver a return in respect of any direct or indirect disposal of any UK land, regardless of the nature of the property and whether any tax is due, within 30 days. Any arising tax liability has also been required to be paid within this period.
In the autumn 2021 Budget Rishi announced that the window for UK and non-UK residents to file the returns and pay the resulting tax liability would be increased from 30 days to 60 days. This measure will allow taxpayers more time to appoint advisers and provide accurate figures.
This comes into effect immediately and therefore all completions made on or after 27 October 2021 will have 60 days to be reported.
The Budget also confirmed that for a UK resident making a disposal of mixed property, only the portion of the gain resulting on the residential property must be reported and paid within the 60 days, the remainder of the disposal will be reported through the annual self-assessment tax return.
Pension lump sum
The Government has announced that they will increase the minimum age at which you can access your pension from 55 to 57 with effect from 6 April 2028.