Tax Tables 2023/24
Tax Tables 2023/24
Welcome to the Barnes Roffe 2023 Spring Budget Tax Tables.
While the majority of the 2023/24 tax rates were released in the autumn, some changes involved unwinding the announcements of Mr Hunt’s predecessor. With inflation and cost of living concerns foremost for the majority of individual and business taxpayers, the Chancellor needed to balance longer-term economic imperatives with perhaps shorter-term political concerns.
The key tax changes you should bear in mind for 2023/24 are:
- Most main tax allowances and reliefs remain frozen at their 2022/23 levels, with the exception of the reduced threshold for additional rate taxpayers, which is cut to £125,140 for 2023/24.
- For Scottish taxpayers, the higher and top rates of tax increase by 1% to 42% and 47%, respectively.
- The headline grabbing change to the pensions lifetime allowance, which will be abolished from April 2024 after the lifetime allowance charge is removed from April 2023.
- Further on pensions, the annual allowance will increase by 50% to £60,000 from 2023/24 and the money purchase annual allowance will rise from £4,000 to £10,000 from 2023/24.
- The dividend allowance for 2023/24 is cut from £2,000 to £1,000.
- The capital gains tax exempt amount is reduced from £12,300 to £6,000 for 2023/24.
- The corporation tax increase announced by Rishi Sunak when he served as the Chancellor pushes the rate to 25%.
- Companies investing in new plant and machinery in the three years from 1 April 2023 can claim a first-year allowance of up to 100% of expenditure.
If you have any questions about how the new tax rates from 6 April will affect you, as well as measures from the Spring Budget, please get in touch.
We believe we are more than just your average accountancy firm. Our goal at Barnes Roffe is to engage our clients through a proactive relationship, which provides you with the resources and tools you need to enable you to take charge of your finances with confidence.
Tax news, audit news and any new accounting news ... with the help of our topical tips, blogs and key guides you can enjoy the benefit of being regularly informed of business and accounting updates which are likely to be relevant to you and your business.
PLEASE NOTE: By the very nature of this type of information the details of tax law might have changed since they were published, so contact your Barnes Roffe partner before acting on any matter contained in these documents.