Personal Allowances - Spring 2022 Update
Posted on 24th June 2022 at 10:52
Personal Allowances
From 6 April 2022
Personal allowance remains at £12,570.
Higher rate threshold remains at £50,270.
Personal savings allowance remains; - Basic rate taxpayers £1,000 - Higher rate taxpayers £500.
Dividend allowance remains at £2,000.
Personal allowance continues to be reduced by £1 for every £2 of income above the £100,000 limit.
Transferrable marriage allowance remains at £1,260.
Income tax rate and thresholds on non-savings, non-dividends income for Scottish/Welsh taxpayers will be set by the Scottish and Welsh Parliaments.
Budget announced
From 6 April 2022
Dividend tax rates increased by 1.25% across all bands.
Basic rate – 8.75%, Higher rate – 33.75%, Additional rate – 39.35%
From 6 April 2024
The basic rate of income tax is to be cut from 20% to 19%. The first cut to this banding in 16 years.
Until 5 April 2026
The personal allowance is frozen at £12,570.
The higher rate threshold was frozen at £50,270.
Although this technically isn’t an increase in income tax there will be an increase in tax take, in real terms, over the coming years.
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