Personal Allowances - Spring 2022 Update

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. 

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. 

The personal allowance is frozen at £12,570. 

The higher rate threshold was frozen at £50,270.