United Kingdom Personal Tax at a glance – July 2022

These emails are designed for individuals with interest in United Kingdom taxation. We aim to keep the points short and sweet, and to merely list snippets of relevant but easy to read information.

July 2022

  1. The UK has double tax treaties with more than 130 countries, making it one of the world’s largest networks.
  2. If you buy a second home in the UK, you will have to pay an extra 3% in Stamp Duty on top of the standard rates for each band.
  3. In the UK, individuals receive a tax-free personal allowance of £12,570 per year (2022-23), however this goes down by £1 for every £2 of income above £100,000.
  4. In the UK, you can earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is commonly known as the ‘rent a room’ scheme.
  5. In the 2018-19 tax year, the UK reduced the tax free dividend allowance from £5,000 to £2,000, which it remains at today.
  6. Unlike countries such as US, Canada and Germany who have adopted the calendar year as their tax year, the UK’s tax year runs from 6 April to the following 5 April.
  7. In the UK, donations to charity are tax free.
  8. The UK offers a ‘Marriage Allowance’ which lets you transfer £1,260 of personal allowance to your husband, wife or civil partner.
  9. Since April 2020, landlords can no longer deduct any of their mortgage expenses from their rental income. Instead, they now receive a tax-credit, based on 20% of their mortgage interest payments.
  10. Unlike countries such as the US and Australia, not all UK residents are required to file a tax return.

This message is not given in the form of an opinion, legal opinion or tax advice. If any of the information provided is of interest or relevance to you or your company we would strongly recommend you contact us or another qualified professional for specific advice. 

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