Key Changes for New Tax Year
Posted on 2nd May 2023 by Joanne Stoneman
The 2023/24 tax year is now underway and there have been several changes which may affect you...
The 2023/24 tax year is now underway and there have been several changes which may affect you. What are the key points?
Income tax. The rates of income tax haven’t been increased; however, the threshold for paying the additional rate (45%) has been reduced to £125,140. The personal allowance and higher rate threshold continue to be frozen, meaning more taxpayers are likely to move up a tax bracket.
The dividend allowance has also been cut to £1,000 for 2023/24. This will affect all shareholders but will be of particular concern to owner-managed business owners and directors, especially with the income tax changes, and increase to the main rate of corporation tax (CT).
Capital gains. The capital gains tax (CGT) rates are also unchanged, but the tax-free annual exempt amount is reduced to £6,000. This will mean up to £1,764 more will be paid on gains.