No changes to Personal Allowances, (the amount you can earn before you pay tax) so kept at £12,570 and will be frozen at this level until 2028. Income tax thresholds, the point at which you pay taxes of 20% and 40%, have been frozen and extended further to 2028. However, for those in the additional rate of tax at 45p which was for those who earned more than £150,000, this threshold has been reduced to £125,140. If you earn more than £150,000 now, you can expect to pay £1,200 more per year in tax. This is from April 2023.
Similarly to income tax, National insurance thresholds have been frozen for a further 2 years, until 2028.
At present, the first £2,000 of dividend income each year is tax free. This will reduce to £1,000 from April 2023, and then reduce further to £500 from April 2024.
At present, the first £12,300 of any Capital Gain is free of tax; this is called the Annual Exemption. From April 2023, the Annual Exemption will reduce to £6,000 and then a further reduction in April 2024 to £3,000.
From April 2023, State Pension will increase by the rate of inflation (inflation is 11.1% today) but will likely be lower in April. The biggest increase in the State Pension payment ever.
