We’ve created an easy-to-read tax table that outlines the tax thresholds for 2023/24, following the Spring Budget on 15th March 2023.
While the majority of the 2023/24 tax rates were released in Autumn 2022, some changes involved unwinding the announcements of Mr Hunt’s predecessor.
Key Tax Changes
The key tax changes you should bear in mind for 2023/24 are:
- 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.
- Pensions lifetime allowance will be abolished from April 2024 after the lifetime allowance charge is removed from April 2023.
- The pensions 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 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.
- 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 want to discuss how these changes will affect you or your business or need support on tax, get in touch with our specialised accountants at James & Uzzell today to see how we can help.