The Chancellor, Rishi Sunak, presented his Autumn Budget and Spending Review on 27 October 2021
Income tax rates and allowances
As previously announced, the personal allowance remains at £12,570 for 2022/23. The allowance is reduced by £1 for every £2 by which adjusted net income exceeds £100,000, such that anyone with adjusted net income of £125,140 or above will not receive a personal allowance.
The married couple’s allowance, which is available to married couples and civil partners where at least one spouse or civil partner was born before 6 April 1935, is increased to £9,415. The allowance is reduced by £1 for every £2 by which income exceeds £31,400 until the minimum amount of the married couple’s allowance is reached. This is set at £3,640 for 2022/23.
The marriage allowance allows one spouse or civil partner to transfer 10% of their personal allowance (as rounded up to the nearest £10) where neither pay tax at the higher or additional rate. The marriage allowance remains at £1,260 for 2022/23.
The blind person’s allowance is increased by £80 to £2,600.
The basic rate of tax remains at 20%, the higher rate of tax remains at 40% and the additional rate of tax remains at 45%. Also unchanged is the basic rate band, which
remains at £37,700, meaning that a person is receipt of the personal allowance of £12,570 will start to pay higher rate tax once their income exceeds £50,270. Tax is payable at the additional rate on taxable income in excess of £150,000.