Your personal tax review for the 2022/23 tax year6 April 2022
As we enter a new tax year we understand, in these challenging times for both family life and business life, reviewing tax and finances may be one of the things that becomes more important to all of us. We’ve produced a personal tax review to help you to identify any tax planning opportunities and take any actions required.
With personal tax rates and allowances being frozen until 2026 there are limited personal tax changes to be aware of for the tax year commencing 6 April 2022. As a reminder some of the key allowances and thresholds for 2022/23 are:
- The income tax personal allowance of £12,570.
- The UK higher rate threshold is £50,270 and remain frozen until 2026.
- The capital gains tax (CGT) annual exemption for individuals and executors which is also frozen at its current level of £12,300 (£6,150 for trustees).
- The Inheritance Tax (IHT) nil rate band of £325,000 and the IHT residence nil rate band of £175,000.
- The lifetime allowance for pension savings of £1,073,100 which will be maintained until at least 5 April 2026.
The main change which was announced in September 2021 was the introduction of the new 1.25% Health and Social Care Levy which will apply from April 2023. Prior to its introduction and with effect from April 2022 NICs paid by employers, employees and the self-employed all increase by 1.25%. NI rates will return to their existing levels from April 2023 when the temporary increase is replaced by the standalone 1.25% levy.
To provide some help for those struggling with the cost of living an increase in the amount below which individuals will not pay NIC was announced with a rise in the threshold to the level of the personal allowance.
Our tax planning guide
We’ve partnered with our financial planning business Anderson Strathern Asset Management to produce a personal tax review for the 2022/23 tax year. It gives you a useful round up of developments and helps identify the things you may need to know for the tax year ahead.
This report provides an overview of the main tax reliefs, exemptions and allowances on offer, together with some planning tips that could help you protect your wealth by maximising the tax benefits available to you while minimising your tax exposure.
You can download a copy of the review here or click on the download below.
2022/23 tax tables
You can also view and download a copy of the 2022/23 tax tables here or click on the download below.
Our Private Client service offers a full portfolio of advisory services in tax planning, asset protection and family advice. It is a full-service solution that is always tailored to meet individual and family needs.
For further tax planning advice, please contact Martin Campbell or Alison Pryde, or speak to your usual Anderson Strathern contact. We would strongly recommend that you seek specialist advice tailored to your own circumstances before taking any action.
For financial planning and investment advice, please contact Graham Clark or speak to your usual Anderson Strathern Asset Management contact.