XACT ACCOUNTS LTD
| Tax | 2023-24 | 2022-23 |
|---|---|---|
| Income Tax | Rate | Rate |
| Starting Rate £1 - £5,000 | 20% | 20% |
| Basic Rate £5,001 - £37,700 | 20% | 20% | Higher Rate £37,701 - £125,140 (2022-23 - £37,701 - £150,000) | 40% | 40% |
| Additional Rate Over £125,140 (2022-23 - Over £150,000) | 45% | 45% |
Notes:
If taxable non savings income is less than £5,000 the tax rate on non dividend savings income up to £5,000 is 0%.
Dividends exceeding the dividend allowance (2023-24 - £1,000 £2022-23 £2,000) are taxed at 8.75% for basic rate
taxpayers, 33.75% for higher rate taxpayers and 39.35% for additional rate taxpayers and trusts.
The basic rate band is increased by gross Gift Aid donations and certain personal pension contributions.
| Tax | 2023-24 | 2022-23 |
|---|---|---|
| Income Tax Allowances | Amount | Amount |
| Married Couple's/Civil Partners' Allowance | £10,375 | £9,415 |
| Minimum Married Couple's/Civil Partners' Allowance | £4,010 | £3,640 | Income Limit For Married Couple's/Civil Partners' Allowance | £34,600 | £31,400 |
| Transferable Marriage/Civil Partners' Allowance | £1,260 | £1,260 |
| Blind Person's Allowance | £1,260 | £2,600 |
| Rent A Room Relief - Maximum | £7,500 | £7,500 |
| Dividend Allowance | £1,000 | £2,000 |
| Savings Allowance | £1,000 | £1,000 |
| Trading Income Allowance | £1,000 | £1,000 |
| Property Income Allowance | £1,000 | £1,000 |
Notes:
The personal allowance is reduced by £1 for every £2 of income over £100,000.
The taxpayer may have to be resident in the U K to get a personal allowance.
To claim married couples or civil partners' allowance the taxpayer must be born before 6th April 1935.
Relief is reduced by £1 for every £2 over the income limit and is restricted to 10%.
For trading income and property income a deduction of £1,000 may be claimed instead of the actual expenses.
| Corporation Tax | 2023-24 | 2022-23 |
|---|---|---|
| Rate | Rate | |
| Main Rate | 25% | 19% |
| Small Profits Rate | 19% | N/A | Loans To Participators | 33.75% | 33.75% |
| Interest On Loans To Participators | 31% | 25% |
Notes:
The main corporation tax rate applies to profits above £250,000 with thresholds
reduced for associated companies. (2022-23 - N/A)
The small profits rate applies to profits up to £50,000 with thresholds reduced
for associated companies.
Marginal relief applies to profits between £50,000 and £250,000 with thresholds
reduced for associated companies. (2022-23 - N/A)
| VAT | 2023-24 | 2022-23 |
|---|---|---|
| Standard Rate | 20% | 20% |
| Reduced Rate | 5% | 5% | Annual Turnover Registration Threshold | £85,000 | £85,000 |
| Annual Turnover Deregistration Threshold | £83,000 | £83,000 |
| Annual Cash Accounting Upper Limit | £1,350,000 | £1,350,000 |
| Intrastat Reporting | ||
| Arrivals Threshold | £500,000 | £500,000 |
| Dispatches Threshold | £250,000 | £250,000 |
Notes:
Registration thresholds are measured by reference to the last 12 months.
Deregistration thresholds are measured by reference to the next 12 months.
The annual cash accounting upper limit refers to those joining the scheme.
Those already in the scheme can remain in it until their turnover exceeds £1,600,000.
E C sales lists are required for goods supplied from Northern Ireland to E U VAT
registered customers. Simplified annual E C sales lists can be used where annual
taxable turnover does not exceed £110,500 and goods supplied annually from
Northern Ireland to E U VAT registered customers do not exceed £11,000.
Intrastat declarations are required for goods moving between Northern Ireland and
and the E U and not for goods moving between Great Britain and the E U or Northern Ireland.
| Capital Gains Tax | 2023-24 | 2022-23 |
|---|---|---|
| Annual Exemption | £6,000 | £12,300 |
| Business Assets Disposal Relief - Lifetime Allowance | £1,000,000 | £1,000,000 | Investors' Relief - Lifetime Allowance | £10,000,000 | £10,000,000 |
| Starting And Basic Taxpayer Rate | 10% | 10% | Higher And Additional Rate Taxpayers | 20% | 20% |
| Pension Contributions | 2023-24 | 2022-23 |
|---|---|---|
| Annual Allowance | £60,000 | £40,000 |
| Lifetime Allowance | £1,073,100 | £1,073,100 |
Notes:
Allowable contributions up to 100% of ernings or the maximum contributions.
The maximum allowable contribution is the annual allowance plus the unutilised
allowances from the previous three tax years.
The lifetime allowance is due to be abolished on 6th April, 2024.
| Inheritance Tax | 2023-24 | 2022-23 |
|---|---|---|
| Nil Rate Band - £325,000 | 0% | 0% |
| Over £325,000 | 40% | 40% |
| Main Exemptions | ||
| Gift On Marriage - Parent | £5,000 | £5,000 |
| Gift On Marriage - Grandparent | £2,500 | £2,500 |
| Annual Gifts Per Donor | £3,000 | £3,000 |
Notes:
Unutilised nil rate allowances transfer to surviving spouse.
Additional nil rate band of £175,000 for transfer of main residence to direct descendants.
The additional nil rate band tapers away for estates over £2,000,000, but this means that
the total tax free allowances that in most cases a husband and wife get to transfer to their
family s £1,000,000 where there is a family home in the estate.
| STAMP DUTY | 2023-24 | 2022-23 |
|---|---|---|
| Property Stamp Taxes | Rate | Rate |
| £1 - £250,000 | Nil | Nil |
| £250,001 £925,000 | 5% | 5% |
| £925,001 £1,500,000 | 10% | 10% |
| Over £1,500,000 | 12% | 12% |
Notes:
Slightly higher rates of stamp duty apply in Scotland and Wales.
A 2% surcharge applies to non UK residents
First time buyers are exempt on the first £425,000.
| CAPITAL ALLOWANCES | 2023-24 | 2022-23 |
|---|---|---|
| Plant And Machinery | ||
| Annual Investment Allowance (Note A) | £1,000,000 | £1,000,000 |
| Long Life Assets And Integral Features (Note B) | 50%/6% | 50%/6% |
| Other Plant And Machinery (Note C) | 100%/18% | 130%/18% |
| First Year Allowance (Note D) | 100% | 100% |
| Cars - CO2 Emissions (g/km) | ||
| 0 (Note E) | 100% | 100% |
| 1 - 50 (Note F) | 18% | 18% |
| Over 50 (Note F) | 6% | 6% |
| Structures And Buildings (Note G) | 3% | 3% |
Notes:
Note A: 100% annual investment allowance up to £1,000,000 shared with connected parties
Note B: Corporation Tax: First year allowance on new plant and machinery that qualifies for
special rate allowances until 31st March, 2026.
Note C: Corporation Tax: 100% first year allowance on new plant and machinery that qualifies for
special rate allowances until 31st March, 2026. 18% reducing balance for other pool assets.
Income Tax: 6% reducing balance per year.
Note D: Available for research and development, new low emission cars snd rechgarging stations.
Note E: New cars only. Allowances for second hand cars are 18%.
Note F: Reducing balance basis.
Note G: Available on structures for which contracts entered into after 28 October, 2018.
| TAX ALLOWABLE MILEAGE RATES | 2023-24 | 2022-23 |
|---|---|---|
| Private Cars And Vans | ||
| First 10,000 miles per annun | £0.45 | £0.45 |
| Additional Miles | £0.25 | £0.25 |
| Motor Cycles | £0.24 | £0.24 |
| Bicycle | £0.20 | £0.20 |
| CAR AND FUEL SCALE BENEFITS | ||
| Car Benefit - Percentage Of List Price | Petrol | Diesel |
| 0 - 50 CO2 Emissions (Gms/Km) | 14% | 18% |
| Each Additional 5 Gms/Km (Max 37%) | 1% | 1% |
| Fuel Benefit - Cars | £27,800 | £27,800 |
| Van Benefit | £3,960 | £3,960 |
| Van Fuel Benefit | £757 | £757 |
Notes:
On 6 April, 2025, 2026 and 2027 benefit charge percentages will rise by 1% each year.
There is a separate benefit regieme for dual fuel vehicles.