Autumn Budget 2021 summary

Produced by Tolley
  • (Updated for Autumn Budget 2021)

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Autumn Budget 2021 summary
  • Personal tax
  • Tax rates and allowances for 2022/23
  • Dividend tax rates
  • National Insurance contributions rates and thresholds
  • Van benefit charge and fuel benefit charges for cars and vans
  • Income tax treatment of Household Support Fund payments
  • ISAs, junior ISAs and child trust funds
  • Increase in normal minimum pension age
  • Pensions tax relief administration: top-up for low earners in net pay arrangements
  • More...

Autumn Budget 2021 summary

Personal tax

Tax rates and allowances for 2022/23

As already legislated for, the personal allowance of £12,570 and the basic rate limit of £37,700 are frozen at current levels up to and including 2025/26. Basic rate, higher rate and additional rate income tax will remain at 20%, 40% and 45% respectively for 2022/23. The additional rate threshold will remain at £150,000. The capital gains tax (CGT) annual exempt amount will remain at £12,300 up to and including 2025/26. CGT rates are unchanged for 2022/23.

The main income tax rates and bands apply equally across the UK, except that Scotland has its own rates and rate bands, to be set for 2022/23 by the Scottish Parliament at its Budget on 9 December 2021, and the Welsh Parliament could also modify income tax rates for Welsh taxpayers at its Budget on 20 December 2021.

The starting rate for savings limit (applicable throughout the UK) will remain at £5,000 for 2022/23, and the starting rate itself at 0%. The Personal Savings Allowance also remains unchanged.

Inheritance tax thresholds and rates are unchanged, and the nil rate band is fixed until April 2026.

See Overview of tax legislation and rates (Oct 2021), paras 1.1, 1.2 and Overview of tax legislation and rates (Oct 2021) Annex A: Rates and allowances.

Dividend tax rates

As announced to Parliament by the Prime Minister on 7 September 2021, the three income tax rates applied to dividend income will each increase by 1.25 percentage points for 2022/23 onwards. These rates have effect throughout

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