Your guide to the 2023 Spring Budget
How will the changes affect you?
The Chancellor, Jeremy Hunt, has delivered another UK Budget, in the midst of a significant cost of living crises and the war in the Ukraine seeing no sign of reachinga conclusion.
Here are some of the main Budgetannouncements in relation to taxation.
It is important to note that the tax rates and thresholds are complicated by the power to vary the tax rates and thresholds of Non- Savings, and Non-Dividend income for
Scottish taxpayers have been devolved to the Scottish Parliament since April 2017.
With the exception of the tax thresholds, similar powers have been passed over to the National Assembly of Wales from April 2019 in respect of Welsh resident taxpayers. The Income Tax Personal Allowance and all other elements of the Income Tax system remain part of the Chancellor’s responsibility.
As was previously announced in the 2022 Autumn Statement, the Personal Tax Allowance currently set at £12,570, will remain at this level until 2028. The Basic Rate Tax Band, presently set at £37,700 will also stay the same until April 2028. Personal allowances will be reduced by £1 for every £2 a person’s income exceeds £100,000.
UK Income Tax Rates 2023/24 & 2024/25 (except Scotland)
Band – £0 to £12,570 Rate – 0%
Band – £12,571 to £37,700 Rate – 20%
Band – £37,701 to £125,140 Rate – 40%
Band – Over £125,140 Rate – 45%
Find Out More in the Spring Budget Update