Policy paper

Annex A: rates and allowances

Published 27 October 2021

© Crown copyright 2021

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This publication is available at https://www.gov.uk/government/publications/autumn-budget-2021-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances

This annex includes Autumn Budget 2021 announcements of the main rates and allowances. It also covers all announcements made at Spring Budget 2021 and subsequently.

Personal tax and benefits

Income Tax bands of taxable income (£ per year)

Tax year 2021 to 2022 Tax year 2022 to 2023
Basic rate £1 to £37,700 £1 to £37,700
Higher rate £37,701 to £150,000 £37,701 to £150,000
Additional rate Over £150,000 Over £150,000

Income Tax rates

Main rates

Main rates Tax year 2021 to 2022 Tax year 2022 to 2023
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%

These figures apply to non-dividend income, including income from savings, employment, property or pensions. From 2017 to 2018, the main rates were separated into the main rates, the savings rates and the default rates.

Savings rates

Savings rates Tax year 2021 to 2022 Tax year 2022 to 2023
Starting rate for savings 0% 0%
Savings basic rate 20% 20%
Savings higher rate 40% 40%
Savings additional rate 45% 45%

These figures apply to savings income.

Dividend rates

Dividend rates Tax year 2021 to 2022 Tax year 2022 to 2023
Dividend ordinary rate — for dividends otherwise taxable at the basic rate 7.5% 8.75%
Dividend upper rate — for dividends otherwise taxable at the higher rate 32.5% 33.75%
Dividend additional rate — for dividends otherwise taxable at the additional rate 38.1% 39.35%

These figures apply to dividend income received above the £2,000 tax-free Dividend allowance.

Default rates

Default rates Tax year 2021 to 2022 Tax year 2022 to 2023
Default basic rate 20% 20%
Default higher rate 40% 40%
Default additional rate 45% 45%

These figures apply to non-savings and non-dividend income of any taxpayer that is not subject to either the Main rates or the Scottish Rates of Income Tax.

Starting rates for savings income

Starting rates for savings income Tax year 2021 to 2022 Tax year 2022 to 2023
Starting rate for savings 0% 0%
Starting rate limit for savings £5,000 £5,000

Special rates for trustees’ income

Special rates for trustees’ income Tax year 2021 to 2022 Tax year 2022 to 2023
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees Up to 20%, depends on the type of income Up to 20%, depends on the type of income
Trust rate 45% 45%
Dividend trust rate 38.1% 39.35%

Income tax allowances

Personal Allowance

Tax year 2021 to 2022 Tax year 2022 to 2023
Personal Allowance £12,570 £12,570
Income limit for Personal Allowance £100,000 £100,000
Income limit for Married Couple’s Allowance £30,400 £31,400

The Personal Allowance reduces where the income is above £100,000 — by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.

The income limit for Married Couple’s Allowance is an age-related allowance. It is reduced by £1 for every £2 of income over this limit.

Marriage Allowance

Tax year 2021 to 2022 Tax year 2022 to 2023
Marriage Allowance £1,260 £1,260

This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance.

A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner.

The recipient must not be liable to Income Tax at the higher or additional rates.

Married Couple’s Allowance for those born before 6 April 1935

Tax year 2021 to 2022 Tax year 2022 to 2023
Maximum amount of Married Couple’s Allowance £9,125 £9,415
Minimum amount of Married Couple’s Allowance £3,530 £3,640

The relief for this allowance is given at 10%.

Blind Person’s Allowance

Tax year 2021 to 2022 Tax year 2022 to 2023
Blind Person’s Allowance £2,520 £2,600

Dividend allowance

Tax year 2021 to 2022 Tax year 2022 to 2023
Dividend allowance £2,000 £2,000

Personal Savings Allowance

Tax year 2021 to 2022 Tax year 2022 to 2023
Personal Savings Allowance for basic rate taxpayers £1,000 £1,000
Personal Savings Allowance for higher rate taxpayers £500 £500

From April 2016, the new Personal Savings Allowance means that basic rate taxpayers do not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers do not have tax to pay on their first £500 of savings income.

Company car tax

CO2 emissions, g/km Electric range (miles) Appropriate percentage (%) for 2022 to 2023 Appropriate percentage (%) for 2023 to 2024 Appropriate percentage (%) for 2024 to 2025
0 N/A 2 2 2
1 to 50 More than 130 2 2 2
1 to 50 70 to 129 5 5 5
1 to 50 40 to 69 8 8 8
1 to 50 30 to 39 12 12 12
1 to 50 Less than 30 14 14 14
51 to 54 — 15 15 15
55 to 59 -— 16 16 16
60 to 64 — 17 17 17
65 to 69 — 18 18 18
70 to 74 — 19 19 19
75 to 79 — 20 20 20
80 to 84 — 21 21 21
85 to 89 — 22 22 22
90 to 94 — 23 23 23
95 to 99 — 24 24 24
100 to 104 — 25 25 25
105 to 109 — 26 26 26
110 to 114 — 27 27 27
115 to 119 — 28 28 28
120 to 124 — 29 29 29
125 to 129 — 30 30 30
130 to 134 — 31 31 31
135 to 139 — 32 32 32
140 to 144 — 33 33 33
145 to 149 — 34 34 34
150 to 154 — 35 35 35
155 to 159 — 36 36 36
160 and over — 37 37 37

For all cars, drivers must add 4% to their appropriate percentage if the car is propelled solely by diesel (up to a maximum of 37%). Cars that meet the Real Driving Emissions Step 2 (RDE2) standard are exempt from the diesel supplement.

National Insurance contributions

In 2022 to 2023 only, the Health and Social Care Levy will be delivered through a temporary 1.25% increase in the main and additional rates of Class 1 and Class 4 NICs.

Employee and employer Class 1 contributions rates and thresholds (£ per week)

Tax year 2021 to 2022 Tax year 2022 to 2023
Weekly Lower Earnings Limit (LEL) £120 £123
Weekly Primary Threshold (PT) £184 £190
Weekly Secondary Threshold (ST) £170 £175
Upper Earnings Limit (UEL) £967 £967
Upper Secondary Threshold (UST) for under 21s £967 £967
Apprentice Upper Secondary Threshold (AUST) for under 25s £967 £967
Veterans’ Upper Secondary Threshold £967 £967
Freeport Upper Secondary Threshold N/A £481
Employment Allowance (per employer) £4,000 per year £4,000 per year

Employee’s (primary) Class 1 contribution rates

Earnings band Tax year 2021 to 2022 Tax year 2022 to 2023
Below Weekly Lower Earnings Limit (LEL) N/A N/A
Weekly Lower Earnings Limit (LEL) to Weekly Primary Threshold (PT) 0% 0%
Weekly Primary Threshold (PT) to Upper Earnings Limit (UEL) 12% 13.25%
Above Upper Earnings Limit (UEL) 2% 3.25%

Married woman’s reduced rate for (primary) Class 1 contribution rates

Tax year 2021 to 2022 Tax year 2022 to 2023
Weekly earnings from between the Primary Threshold (PT) and Upper Earnings Limit (UEL) 5.85% 7.1%
Weekly earnings above the Upper Earnings Limit (UEL) 2% 3.25%

Employer’s (secondary) Class 1 contribution rates

Earnings band Tax year 2021 to 2022 Tax year 2022 to 2023
Below Secondary Threshold (ST) 0% 0%
Above Secondary Threshold (ST) 13.8% 15.05%

Employer’s (secondary) Class 1 contribution rates for employees under 21

Earnings band Tax year 2021 to 2022 Tax year 2022 to 2023
Below Upper Secondary Threshold (UST) 0% 0%
Above Upper Secondary Threshold (UST) 13.8% 15.05%

Employer’s (secondary) Class 1 contribution rates for apprentices under 25

Earnings band Tax year 2021 to 2022 Tax year 2022 to 2023
Below Apprentice Upper Secondary Threshold (AUST) 0% 0%
Above Apprentice Upper Secondary Threshold (AUST) 13.8% 15.05%

Self-employed Class 2 contribution rates and thresholds (£ per week)

Tax year 2021 to 2022 Tax year 2022 to 2023
Small Profits Threshold (SPT) £6,515 £6,725

Class 2 contribution rates

Tax year 2021 to 2022 Tax year 2022 to 2023
Annual profits (£ a year) £ per week £ per week
Below Small Profits Threshold (SPT) £3.05 (voluntary) £3.15 (voluntary)
Above Small Profits Threshold (SPT) £3.05 £3.15
Special Class 2 rate for share fishermen £3.70 £3.80
Special Class 2 rate for volunteer development workers £6.00 £6.15

Class 3 National contributions: other rates and thresholds (£ per week)

Tax year 2021 to 2022 Tax year 2022 to 2023
Voluntary contributions £15.40 £15.85

Self-employed Class 4 contribution rates and thresholds (£ per year)

Tax year 2021 to 2022 Tax year 2022 to 2023
Lower Profits Limit (LPL) £9,568 £9,880
Upper Profits Limit (UPL) £50,270 £50,270

Class 4 contribution rates

Tax year 2021 to 2022 Tax year 2022 to 2023
Annual profits band NIC rate (per cent) NIC rate (per cent)
Below Lower Profits Limit (LPL) 0% 0%
Lower Profits Limit (LPL) to Upper Profits Limit (UPL) 9% 10.25%
Above Upper Profits Limit (UPL) 2% 3.25%

Tax credits, Child Benefit and Guardians Allowance

Following the publication of CPI figures for September 2021 on 20 October, the government will conduct a review of benefits rates for 2022 to 2023. The outcome of the government’s review, including any changes to rates, will be announced in November 2021 and implemented in April 2022.

Working Tax Credit

Tax year 2021 to 2022 (£ per year (unless stated))
Basic element £2,005
Couple and lone parent element £2,060
30 hour element £830
Disabled worker element £3,240
Severe disability element £1,400

Childcare element of Working Tax Credit

Tax year 2021 to 2022 (£ per year (unless stated))
Maximum eligible cost for one child £175 per week
Maximum eligible cost for 2 or more children £300 per week
Percentage of eligible costs covered 70%

Child Tax Credit

Tax year 2021 to 2022 (£ per year (unless stated))
Family element £545
Child element £2,845
Disabled child element £3,435
Severely disabled child element £1,390
Income threshold £6,565
Withdrawal rate (per cent) 41%
First threshold for those entitled to Child Tax Credit only £16,480
Income rise disregard £2,500
Income fall disregard £2,500

Child Benefit per week

Tax year 2021 to 2022
Eldest or only child £21.15
Other children £14.00

Guardian’s Allowance per week

Tax year 2021 to 2022
Guardian’s allowance £18.00

Capital, assets and property

Pensions tax relief

Tax year 2021 to 2022 Tax year 2022 to 2023
Lifetime Allowance limit £1,073,100 £1,073,100
Annual Allowance limit £40,000 £40,000
Money Purchase Annual Allowance £4,000 £4,000
Tapered Annual Allowance (applies when an individual has ‘adjusted income’ over this amount provided the ‘threshold income’ test is met) £240,000 £240,000

Tax-free savings accounts

Tax year 2021 to 2022 Tax year 2022 to 2023
Individual Savings Account (ISA) subscription limit £20,000 £20,000
Junior ISA subscription limit £9,000 £9,000
Child Trust Fund (CTF) subscription limit £9,000 £9,000

Capital Gains Tax

Main rates for individuals other than gains on residential property (not eligible for Private Residence Relief) and carried interest

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer 10% 10%
Income Tax higher rate payer 20% 20%

Rates for individuals (for gains on residential property not eligible for Private Residence Relief, and carried interest)

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer 18% 18%
Income Tax higher rate payer 28% 28%

Main rate for trustees and personal representatives other than gains on residential property (not eligible for Private Residence Relief) and carried interest

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer 20% 20%
Income Tax higher rate payer 20% 20%

Rate for trustees and personal representatives (for gains on residential property not eligible for Private Residence Relief)

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer 28% 28%
Income Tax higher rate payer 28% 28%

Rate for personal representatives for gains on carried interest

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer 28% 28%
Income Tax higher rate payer 28% 28%

Annual exempt amount for individuals and personal representatives

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer £12,300 £12,300
Income Tax higher rate payer £12,300 £12,300

Annual exempt amount for most trustees

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer £6,150 £6,150
Income Tax higher rate payer £6,150 £6,150

Rate on gains subject to business asset disposal relief

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer 10% 10%
Income Tax higher rate payer 10% 10%

Rate on gains subject to investors’ relief

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer 10% 10%
Income Tax higher rate payer 10% 10%

Business asset disposal relief: lifetime limit on qualifying gains

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer £1,000,000 £1,000,000
Income Tax higher rate payer £1,000,000 £1,000,000

Investors’ relief: lifetime limit on gains for external investors

Tax year 2021 to 2022 Tax year 2022 to 2023
Income Tax basic rate payer £10,000,000 £10,000,000
Income Tax higher rate payer £10,000,000 £10,000,000

Inheritance Tax

Tax year 2021 to 2022 Tax year 2022 to 2023
Rate (for estates) 40% 40%
Reduced rate (for estates leaving 10% or more to charity) 36% 36%
Rate (for chargeable lifetime transfers) 20% 20%
Nil-rate band limit £325,000 £325,000
Residence nil-rate band limit £175,000 £175,000
Taper threshold for residence nil-rate band £2,000,000 £2,000,000

Stamp Duty Land Tax (SDLT) — residential property

Standard rates from 1 October 2021 onwards

Property value Rate (on portion of value above threshold) Rate (on portion of value above threshold) if purchase is of an additional residential property Rate (on portion of value above threshold) on or after 1 April 2021 if purchase is of residential property by certain non-UK residents Rate (on portion of value above threshold) on or after 1st April 2021 if purchase is of an additional residential property and by certain non-UK residents
0 to £125,000 0% 3% 2% 5%
£125,000 to £250,000 2% 5% 4% 7%
£250,000 to £925,000 5% 8% 7% 10%
£925,000 to £1.5 million 10% 13% 12% 15%
over £1.5 million 12% 15% 14% 17%

Qualifying purchases in freeport tax sites will be eligible for full SDLT relief.

For the rate (on portion of value above threshold) if purchase is of an additional residential property, see HMRC guidance note on whether the higher rate applies.

Rates for first-time buyers purchasing properties worth £500,000 or less

Property Value Rate (on portion of value above threshold) on or after 22 November 2017 if purchase qualifies for first-time buyer relief
£0 to £300,000 0%
£300,000 to £500,000 5%
over £500,000 The standard rates apply

SDLT — non-residential property

Purchase and Premium Transactions

Property value Rate on or after 17 March 2016 (on portion of value above threshold)
0 to £150,000 0%
£150,000 to £250,000 2%
over £250,000 5%
Net Present Value (NPV) of the lease Rate on or after 17 March 2016 (on portion of value above threshold)
0 to £150,000 0%
£150,000 to £5 million 1%
over £5 million 2%

Annual Tax on Enveloped Dwellings (ATED)

The ATED charges increase automatically each year in line with inflation (based on the previous September’s Consumer Price Index (CPI)).

The ATED annual charges will rise by 3.1% from 1 April 2022 in line with the September 2021 Consumer Price Index. A TIIN has not been published for this measure, as it is a routine legislative change. This table shows the property band and what the revised charges will be for the 2022 to 2023 chargeable period.

Taxable value of the property Charge for tax year 2021 to 2022 Charge for tax year 2022 to 2023
£500,001 to £1,000,000 £3,700 £3,800
£1,000,001 to £2,000,000 £7,500 £7,700
£2,000,001 to £5,000,000 £25,300 £26,050
£5,000,001 to £10,000,000 £59,100 £60,900
£10,000,001 to £20,000,000 £118,600 £122,250
£20,000,001 and over £237,400 £244,750

Residential Property Developer Tax

Percentage from 1 April 2022 onwards UK annual allowance
4% £25 million

Business and financial services

Corporation Tax rates

Financial year 2021 to 2022 Financial year 2022 to 2023 Financial year 2023 to 2024
Main rate 19% 19% 25%
Small profits rate N/A N/A 19%
Lower threshold N/A N/A £50,000
Upper threshold N/A N/A £250,000

North Sea oil and gas ring-fence profits rates

For North Sea oil and gas ring-fence profits the main rate is 30% and the small profits rate is 19%. The marginal relief ring-fence fraction is 11/400ths. From April 2023 the marginal relief ring-fence fraction will remain 11/400ths.

The lower and upper limits for ring-fence profits are currently £300,000 and £1,500,000, respectively. From April 2023 the lower and upper limits for ring-fence profits will be aligned with non ring-fence profits.

Corporation Tax allowances and reliefs

Financial year 2021 to 2022 Financial year 2022 to 2023
Plant and machinery: main rate expenditure 18% 18%
Plant and machinery: special rate expenditure 6% 6%
Structures and Buildings Allowance (SBA) 3% 3%
Annual Investment Allowance (AIA) £1 million £1 million
Enhanced Capital Allowances in Freeports (ECA+) 100% 100%
Enhanced Structures and Buildings Allowance (SBA+) 10% 10%
Full expensing: super-deduction 130% 130%
Full expensing: special rate FYA 50% 50%
R&D tax credits SME Scheme 230% 230%
R&D SME payable credit 14.5% 14.5%
R&D expenditure credit 13% 13%
Patent Box 10% 10%
Film Tax Relief 25% 25%
High-end TV Tax Relief 25% 25%
Video Games Tax Relief 25% 25%
Open ended investment companies and authorised unit trusts 20% 20%
Plant and machinery: main rate expenditure 18% 18%

The Patent Box has been phased in from April 2013, with companies being able to claim:

  • 60% of the benefit in 2013 to 2014
  • 70% in 2014 to 2015
  • 90% in 2016 to 2017
  • 100% in 2017 to 2018

For open-ended investment companies and authorised unit trusts the applicable Corporation Tax rate is 20%.

Cultural Corporation Tax allowances and reliefs

  Financial year 2021 to 2022 (Prior to 27 October 2021 Financial year 2021 to 2022 (Post 27 October 2021) Financial year 2022 to 2023 Financial year 2023 to 2024
Museums and Galleries Exhibition Tax Relief 20% / 25% 45% / 50% 45% / 50% 30% / 35%
Theatre Tax Relief 20% / 25% 45% / 50% 45% / 50% 30% / 35%
Orchestra Tax Relief 25% 50% 50% 35%

For Museums and Galleries Exhibition Tax Relief, 2 rates of reliefs are provided. The lower for non-touring productions and the higher for touring productions. The rate increase will apply from 27 October 2021.

For Theatre Tax Relief, 2 rates of reliefs are provided. The lower for non-touring productions and the higher for touring productions. The rate increase will apply from 27 October 2021.

Bank Levy

Chargeable equity and long-term chargeable liabilities Short-term chargeable liabilities
1 January 2011 to 28 February 2011 0.025% 0.05%
1 March 2011 to 30 April 2011 0.05% 0.1%
1 May 2011 to 31 December 2011 0.0375% 0.075%
1 January 2012 to 31 December 2012 0.044% 0.088%
1 January 2013 to 31 December 2013 0.065% 0.130%
1 January 2014 to 31 March 2015 0.078% 0.156%
1 April 2015 to 31 December 2015 0.105% 0.21%
1 January 2016 to 31 December 2016 0.09% 0.18%
1 January 2017 to 31 December 2017 0.085% 0.17%
1 January 2018 to 31 December 2018 0.08% 0.16%
1 January 2019 to 31 December 2019 0.075% 0.15%
1 January 2020 to 31 December 2020 0.07% 0.14%
1 January 2021 onwards 0.05% 0.1%

Bank surcharge

  Rate on profits (%) Group allowance
January 2016 to April 2023 8% £25 million
April 2023 onwards 3% £100 million

The timing of the amendment to rate of the surcharge on banking companies to 3% aligns with the change to the main rate of Corporation Tax to 25%. From April 2023, the combined rate of tax on profits for banking companies will be 28%, up from 27% currently.

Diverted Profits Tax

Financial year 2021 to 2022 Financial year 2022 to 2023 Financial year 2023 to 2024
25% 25% 31%

Digital Services Tax

2% from 1 April 2020 onwards.

Amount
Global revenue threshold £500 million
UK revenue threshold £25 million
UK revenue allowance £25 million

Economic Crime (Anti-Money Laundering) Levy

Entity / Payee size UK revenue threshold Fee in levy year 1: 1 April 2022 to 31 March 2023 Fee in levy year 2: 1 April 2023 to 31 March 2024 (first year the levy is paid ) Fee in levy year 3: 1 April 2024 – 31 March 2025
Small Under £10.2 million N/A (exempt) N/A (exempt) N/A (exempt)
Medium £10.2 million to £36 million N/A £10,000 Fee rates are intended to remain unchanged up until the levy review in 2027. However, if the levy is yielding more or less than the desired £100 million per year, rates may need to be updated beforehand.
Large £36 million to £1 billion N/A £36,000 Fee rates are intended to remain unchanged up until the levy review in 2027. However, if the levy is yielding more or less than the desired £100 million per year, rates may need to be updated beforehand.
Very large Over £1 billion N/A £250,000 Fee rates are intended to remain unchanged up until the levy review in 2027. However, if the levy is yielding more or less than the desired £100 million per year, rates may need to be updated beforehand.

UK oil and gas taxes

Financial year 2021 to 2022 Financial year 2022 to 2023 Financial year 2023 to 2024
Petroleum Revenue Tax 0% 0% 0%
Ring-fence Corporation Tax 30% 30% 30%
Supplementary charge 10% 10% 10%

For North Sea oil and gas ring-fence profits the main rate is 30 per cent and the small profits rate is 19 per cent. The marginal relief ring-fence fraction is 11/400ths.

Business rates

Financial year 2021 to 2022 Financial year 2022 to 2023
England standard multiplier 51.2p 51.2p
England small business multiplier 49.9p 49.9p

Small business multiplier applies to properties with a rateable value of less than £18,000 (or £25,500 in London).

Indirect tax

Alcohol Duty

The Budget confirmed that alcohol duty rates have been frozen, as shown in the table below.

Rate per litre of pure alcohol

Duty rate from 3 March 2021 Duty rate from 27 October 2021
Spirits £28.74 £28.74
Spirits-based RTDs £28.74 £28.74
Wine and made-wine: exceeding 22% alcohol by volume (abv) £28.74 £28.74

Rate per hectolitre per cent of alcohol in the beer

Duty rate from 3 March 2021 Duty rate from 27 October 2021
Beer — lower strength: exceeding 1.2% — not exceeding 2.8% abv £8.42 £8.42
Beer — General Beer Duty: exceeding 2.8% — not exceeding 7.5% abv £19.08 £19.08
Beer — high strength: exceeding 7.5% — in addition to the General Beer Duty £19.08 + £5.69 £19.08 + £5.69

Rate per hectolitre of product

Duty rate from 3 March 2021 Duty rate from 27 October 2021
Still cider and perry: exceeding 1.2% — not exceeding 6.9% abv £40.38 £40.38
Still cider and perry: exceeding 6.9% — not exceeding 7.5% abv £50.71 £50.71
Still cider and perry: exceeding 7.5% — less than 8.5% abv £61.04 £61.04
Sparkling cider and perry: exceeding 1.2% — not exceeding 5.5% abv £40.38 £40.38
Sparkling cider and perry: exceeding 5.5% — less than 8.5% abv £288.10 £288.10
Wine and made-wine: exceeding 1.2% — not exceeding 4% abv £91.68 £91.68
Wine and made-wine: exceeding 4% — not exceeding 5.5% abv £126.08 £126.08
Still wine and made-wine: exceeding 5.5% — not exceeding 15% abv £297.57 £297.57
Wine and made-wine: exceeding 15% — not exceeding 22% abv £396.72 £396.72
Sparkling wine and made-wine: exceeding 5.5% — less than 8.5% abv £288.10 £288.10
Sparkling wine and made-wine: at least 8.5% — not exceeding 15% abv £381.15 £381.15

Tobacco products

Cigarettes

The duty rate will be the higher figure of the duty rate plus the ad valorem element or minimum excise tax.

Duty rate plus ad valorem element Minimum excise tax
From 16 November 2020 An amount equal to 16.5% of the retail price plus £244.78 per 1,000 cigarettes £320.90 per 1,000 cigarettes
From 6pm 27 October 2021 An amount equal to 16.5% of the retail price plus £262.90 per 1,000 cigarettes £347.86 per 1,000 cigarettes

Cigars

Duty rate plus ad valorem element Minimum excise tax
From 16 November 2020 £305.32 per kilogram N/A
From 6pm 27 October 2021 £327.92 per kilogram N/A

Hand-rolling tobacco

Duty rate plus ad valorem element Minimum excise tax
From 16 November 2020 £271.40 per kilogram N/A
From 6pm 27 October 2021 £302.34 per kilogram N/A

Other smoking tobacco and chewing tobacco

Duty rate plus ad valorem element Minimum excise tax
From 16 November 2020 £134.24 per kilogram N/A
From 6pm 27 October 2021 £144.17 per kilogram N/A

Tobacco for heating

Duty rate plus ad valorem element Minimum excise tax
From 16 November 2020 £251.60 per kilogram N/A
From 6pm 27 October 2021 £270.22 per kilogram N/A

Gambling duties

Bingo Duty

Tax year 2021 to 2022 Tax year 2022 to 2023
Percentage of bingo promotion profits 10% 10%

General Betting Duty

Tax year 2021 to 2022 Tax year 2022 to 2023
Percentage of ‘net stake receipts’ for fixed odds bets and totalisator bets on horse or dog races 15% 15%
Percentage of ‘net stake receipts’ for financial spread bets 3% 3%
Percentage of ‘net stake receipts’ for all other spread bets 10% 10%

Pool Betting Duty

Tax year 2021 to 2022 Tax year 2022 to 2023
Percentage of net pool betting receipts 15% 15%

Lottery Duty

Tax year 2021 to 2022 Tax year 2022 to 2023
Percentage of the price paid or payable on taking a ticket or chance in a lottery 12% 12%

Remote Gaming Duty

Tax year 2021 to 2022 Tax year 2022 to 2023
Percentage of remote gaming profits 21% 21%

Machine Games Duty

Tax year 2021 to 2022 Tax year 2022 to 2023
Percentage of the net takings from dutiable machine games with a maximum cost to play not more than 20p and a maximum cash prize not more than £10 (Type 1 machines) 5% 5%
Percentage of net takings from machines which are not Type 1 machines but where the cost to play cannot exceed £5 20% 20%
Percentage of net takings from dutiable machine games where the maximum cost to play can exceed £5 25% 25%

Gaming Duty 2021 to 2022

Tax rate Gross gaming yield
15% £2,548,500
20% £1,757,000
30% £3,077,000
40% £6,494,500
50% Remainder

Figures for accounting periods beginning on or after 1 April 2022

Tax rate Gross gaming yield
15% £2,686,000
20% £1,852,000
30% £3,243,000
40% £6,845,000
50% Remainder

Insurance Premium Tax

Tax year 2021 to 2022 Tax year 2022 to 2023
Standard rate 12% 12%
Higher rate 20% 20%

Soft Drinks Industry Levy

To 27 October 2021 From 27 October 2021
Standard rate 18p per litre 18p per litre
Higher rate 24p per litre 24p per litre

Climate Change Levy main rates

Taxable commodity Rate from 1 April 2021 Rate from 1 April 2022 Rate from 1 April 2023
Electricity (£ per kilowatt hour) 0.00775 0.00775 0.00775
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility 0.00465 0.00568 0.00672
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state 0.02175 0.02175 0.02175
Any other taxable commodity 0.03640 0.04449 0.05258

Climate Change Levy reduced rates

Taxable commodity supplied Rate from 1 April 2021 Rate from 1 April 2022 Rate from 1 April 2023
Electricity 8% 8% 8%
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility 17% 14% 12%
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state 23% 23% 23%
Any other taxable commodity 17% 14% 12%

Carbon Price Support rates of Climate Change Levy and fuel duty

Rate from 1 April 2016 to 31 March 2024
Carbon price equivalent (£ per tonne of carbon dioxide) 18.00

Supplies of commodity used in electricity generation

Rate from 1 April 2021 to 31 March 2024
Natural gas (£ per kilowatt hour) 0.00331
Liquid petroleum gas (£ per kilogram) 0.05280
Coal and other taxable solid fossil fuels (£ per gross gigajoule) 1.54790
Gas oil; rebated bio blend; and kerosene (£ per litre) 0.04916
Fuel oil; other heavy oil and rebated light oil (£ per litre) 0.05711

Aggregates Levy

Rate from 1 April 2021 Rate from 1 April 2022
Commercially exploited taxable aggregate £2 per tonne £2 per tonne

Landfill Tax rates for 2021 to 2023

Material sent to landfill Rate from 1 April 2021 Rate from 1 April 2022 Rate from 1 April 2023
Coverage England and Northern Ireland England and Northern Ireland England and Northern Ireland
Standard-rated (per tonne) £96.70 £98.60 £102.10
Lower rated (per tonne) £3.10 £3.15 £3.25

Landfill Tax was devolved to the Scottish Parliament in April 2015 and to the Welsh Parliament (Senedd Cymru) in April 2018.

Landfill Communities Fund for 2022 to 2023

As announced at Autumn Budget 2021, the government will set the value of the Landfill Communities Fund for 2022 to 2023 at £30.8 million, with the cap on contributions by landfill operators remaining at 5.3% of their Landfill Tax liability.

Plastic Packaging Tax

Rate from 1 April 2022

£200 per tonne for plastic packaging with less than 30% recycled plastic content.

There will be a de minimis threshold of 10 tonnes of plastic packaging per 12 months. In 2022 to 2023 only the rules for calculating the volume of applicable packaging will be adjusted.

Air Passenger Duty rates

Air Passenger Duty applies to all flights aboard aircraft 5.7 tonnes and above. Rates for direct long-haul flights from Northern Ireland are devolved and set at £0.

Direct long haul journeys are those where the first leg of the journey is to a destination outside Band A.

Air passenger duty rates for 2021 to 2022

Reduced rate (lowest class of travel)

Bands (approximate distance in miles from London) From 1 April 2021 From 1 April 2022
Band A (0 to 2,000 miles) £13 £13
Band B (over 2,000 miles) £82 £84

Standard rate (other than the lowest class of travel)

Bands (approximate distance in miles from London) From 1 April 2021 From 1 April 2022
Band A (0 to 2,000 miles) £26 £26
Band B (over 2,000 miles) £180 £185

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.

Higher rate

Bands (approximate distance in miles from London) From 1 April 2021 From 1 April 2022
Band A (0 to 2,000 miles) £78 £78
Band B (over 2,000 miles) £541 £554

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.

Air Passenger Duty rates for 2023

Bands (approximate distance in miles from the UK) Reduced rate (lowest class of travel) from 1 April 2023 Standard rate (other than the lowest class of travel) from 1 April 2023 Higher rate from 1 April 2023
Domestic (flights within the UK) £6.50 £13 £78
Band A (0 to 2,000 miles) £13 £26 £78
Band B (2,001 to 5,500 miles) £87 £191 £574
Band C (over 5,500 miles) £91 £200 £601

Where a class of travel provides a seat pitch in excess of 1.016 metres (40 inches), the standard rate is the minimum rate that applies.

The higher rate applies to flights on aircraft of 20 tonnes and above, with fewer than 19 seats.

Fuel duty – £ per litre unless stated

Light oils

Rates on and after 6pm on 23 March 2011
Unleaded petrol 0.5795
Light oil (other than unleaded petrol or aviation gasoline) 0.6767
Aviation gasoline (Avgas) 0.3820
Light oil delivered to an approved person for use as furnace fuel 0.1070

Aviation gasoline (Avgas) was £0.3770 per litre on and after 6pm on 23 March 2011. It increased to £0.3820 per litre from 1 January 2021.

Heavy oils

Rates on and after 6pm on 23 March 2011
Heavy oil (diesel) 0.5795
Marked gas oil 0.1114
Fuel oil 0.1070
Heavy oil other than fuel oil, gas oil or kerosene used as fuel 0.1070
Kerosene to be used as fuel in an engine, other than in a road vehicle or for heating 0.1114

Biofuels

Rates on and after 6pm on 23 March 2011
Bio-ethanol 0.5795
Bio-diesel 0.5795
Bio-diesel for non-road use 0.1114
Bio-diesel blended with gas oil not for road fuel use 0.1114

Road fuel gases

Rates on and after 6pm on 23 March 2011
Liquefied petroleum gas (£ per kilogram) 0.3161
Road fuel natural gas including biogas (£ per kilogram) 0.2470

Other fuel

Rate on and after 6pm on 23 March 2011 Rate on and after 1 October 2016
Aqua-methanol set aside for road use — 0.0790

Vehicle Excise Duty bands and rates for cars first registered on or after 1 April 2017

Budget 2018 announced that new diesel vehicles registered after 1 April 2018 that do not meet the real driving emission step 2 (RDE2) standard will be charged a supplement on their first year rate to the effect of moving up by one Vehicle Excise Duty band.

Tax year 2021 to 2022

CO2 emissions (g/km) Standard rate First year rate
0 0 0
1 to 50 155 10
51 to 75 155 25
76 to 90 155 115
91 to 100 155 140
101 to 110 155 160
111 to 130 155 180
131 to 150 155 220
151 to 170 155 555
171 to 190 155 895
191 to 225 155 1,345
226 to 255 155 1,910
Over 255 155 2,245

Cars with a list price of over £40,000 when new pay an additional rate of £355 per year on top of the standard rate, for 5 years.

Alternative fuelled vehicles, including hybrids, bioethanol and liquid petroleum gas, pay £155 per annum.

Tax year 2022 to 2023

CO2 emissions (g/km) Standard rate First year rate
0 0 0
1 to 50 165 10
51 to 75 165 25
76 to 90 165 120
91 to 100 165 150
101 to 110 165 170
111 to 130 165 190
131 to 150 165 230
151 to 170 165 585
171 to 190 165 945
191 to 225 165 1,420
226 to 255 165 2,015
Over 255 165 2,365

Cars with a list price of over £40,000 when new pay an additional rate of £355 per year on top of the standard rate, for 5 years.

Alternative fuelled vehicles, including hybrids, bioethanol and liquid petroleum gas, pay £155 per annum.

Vehicle Excise Duty bands and rates for cars registered on or after 1 March 2001

Tax year 2021 to 2022

Vehicle Excise Duty band (g/km) CO2 emissions Standard rate
A Up to 100 0
B 101 to 110 20
C 111 to 120 30
D 121 to 130 130
E 131 to 140 155
F 141 to 150 170
G 151 to 165 210
H 166 to 175 250
I 186 to 200 275
J 186 to 200 315
K (Includes cars emitting over 225g/km registered before 23 March 2006) 201 to 225 340
L 226 to 255 585
M Over 255 600

Tax year 2022 to 2023

Vehicle Excise Duty band (g/km) CO2 emissions Standard rate
A Up to 100 0
B 101 to 110 20
C 111 to 120 30
D 121 to 130 135
E 131 to 140 165
F 141 to 150 180
G 151 to 165 220
H 166 to 175 265
I 186 to 200 290
J 186 to 200 330
K (Includes cars emitting over 225g/km registered before 23 March 2006) 201 to 225 360
L 226 to 255 615
M Over 255 630

Vehicle Excise Duty bands and rates for cars and vans registered before 1 March 2001

Engine size Tax year 2021 to 2022 Tax year 2022 to 2023
1549cc and below 170 180
Above 1549cc 280 295

Vehicle Excise Duty bands and rates for vans registered on or after 1 March 2001

Vehicle registration date Tax year 2021 to 2022 Tax year 2022 to 2023
Early euro 4 and euro 5 compliant vans 140 140
All other vans 275 290

Vehicle Excise Duty bands and rates for motorcycles

Engine size Tax year 2021 to 2022 Tax year 2022 to 2023
Not over 150cc 21 22
151cc and 400cc 45 47
401cc to 600c 69 73
Over 600cc 96 101

Vehicle Excise Duty bands and rates for motor tricycles

Engine size Tax year 2021 to 2022 Tax year 2022 to 2023
Not over 150cc 21 22
All other tricycles 96 101

Vehicle Excise Duty bands and rates for trade licences

Vehicle type Tax year 2021 to 2022 Tax year 2022 to 2023
Available for all vehicles 170 180
Available only for bicycles and tricycles (weighing no more than 450kg without a sidecar) 96 101

Vehicle Excise Duty and levy bands and rates for articulated vehicles and rigid vehicles without trailers

Check the Vehicle Excise Duty and levy bands and rates for articulated vehicles and rigid vehicles without trailers.

Vehicle Excise Duty and levy amounts payable for rigid vehicles with trailers (vehicles with road friendly suspension)

Check the Vehicle Excise Duty and levy amounts payable for rigid vehicles with trailers (vehicles with road friendly suspension)

Vehicle Excise Duty and levy amounts payable for rigid vehicles with trailers (vehicles without road friendly suspension)

Check the Vehicle Excise Duty and levy amounts payable for rigid vehicles with trailers (vehicles without road friendly suspension).

Rigid goods vehicles

The band and rate payable can be calculated by using the following look-up tables.

In the table, the letter indicates the Vehicle Excise Duty and levy band the vehicle is in, and the number indicates the rate that is payable as part of that band (for example B2 would refer to Vehicle Excise Duty and levy band B, and rate 2 as determined by the weight and axle configuration of the vehicle).

For vehicles with trailers, the rate paid depends on whether the vehicle has road-friendly suspension.

There are separate tables for with and without road friendly suspension.

Rigid goods vehicle without trailer

Revenue weight of vehicle over Revenue weight of vehicle not over 2 axles 3 axles 4 or more axles
3,500kg 7,500kg A0 A0 A0
7,500kg 11,999kg B0 B0 B0
11,999kg 14,000kg B1 B1 B1
14,000kg 15,000kg B2 B1 B1
15,000kg 19,000kg D1 B1 B1
19,000kg 21,000kg D1 B3 B1
21,000kg 23,000kg D1 C1 B1
23,000kg 25,000kg D1 D1 C1
25,000kg 27,000kg D1 D1 D1
27,000kg 44,000kg D1 D1 E1

Rigid vehicles with trailer

Revenue weight of vehicle (not trailer) over Revenue weight of vehicle (not trailer) not over 2-axled rigid 3-axled rigid 4-axled rigid
11,999kg 15,000kg B(T) B(T) B(T)
15,000kg 21,000kg D(T) B(T) B(T)
21,000kg 23,000kg E(T) C(T) B(T)
23,000kg 25,000kg E(T) D(T) C(T)
25,000kg 27,000kg E(T) D(T) D(T)
27,000kg 44,000kg E(T) E(T) E(T)

Articulated vehicles

Articulated vehicles, tractive unit with 3 or more axles

Revenue weight of vehicle over Revenue weight of vehicle not over One or more semi-trailer axles 2 or more semi trailer axles 3 or more semi-trailer axles
3,500kg 11,999kg A0 A0 A0
11,999kg 25,000kg A1 A1 A1
25,000kg 26,000kg A3 A1 A1
26,000kg 28,000kg A4 A1 A1
28,000kg 29,000kg C1 A1 A1
29,000kg 31,000kg C3 A1 A1
31,000kg 33,000kg E1 C1 A1
33,000kg 34,000kg E2 D1 A1
34,000kg 36,000kg E2 D1 C1
36,000kg 38,000kg F E1 D1
38,000kg 44,000kg G G E1

Articulated vehicles, tractive unit with 2 axles

Revenue weight of vehicle over Revenue weight of vehicle not over One or more semi-trailer axles 2 or more semi trailer axles 3 or more semi-trailer axles
3,500kg 11,999kg A0 A0 A0
11,999kg 22,000kg A1 A1 A1
22,000kg 23,000kg A2 A1 A1
23,000kg 25,000kg A5 A1 A1
25,000kg 26,000kg C2 A3 A1
26,000kg 28,000kg C2 A4 A1
28,000kg 31,000kg D1 D1 A1
31,000kg 33,000kg E1 E1 C1
33,000kg 34,000kg E1 E2 C1
34,000kg 38,000kg F F E1
38,000kg 44,000kg G G G

VAT

April 2021 to 2022 April 2022 to 2023
Standard rate 20% 20%
Reduced rate 5% 5%
Zero rate 0% 0%
Exempt N/A N/A
Temporary reduced rate for hospitality and tourism sector 5%/12.5% 20%

The 5% rate applied to the 30 September 2021 and the 12.5% rate applies from 1 October 2021 to 31 March 2022.

VAT registration and deregistration thresholds

From April 2021 From April 2022
VAT registration thresholds £85,000 £85,000
VAT deregistration threshold £83,000 £83,000
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