Finance (No. 2) Act 2023 (c. 30)

Part 1 U.K. Income tax, corporation tax and capital gains tax

Income tax charge, rates etc U.K.

1 Income tax charge for tax year 2023-24 U.K.

Income tax is charged for the tax year 2023-24.

2 Main rates of income tax for tax year 2023-24 U.K.

For the tax year 2023-24 the main rates of income tax are as follows—

(a) the basic rate is 20%,

(b) the higher rate is 40%, and

(c) the additional rate is 45%.

3 Default and savings rates of income tax for tax year 2023-24 U.K.

(1) For the tax year 2023-24 the default rates of income tax are as follows—

(a) the default basic rate is 20%,

(b) the default higher rate is 40%, and

(c) the default additional rate is 45%.

(2) For the tax year 2023-24 the savings rates of income tax are as follows—

(a) the savings basic rate is 20%,

(b) the savings higher rate is 40%, and

(c) the savings additional rate is 45%.

4 Freezing starting rate limit for savings for tax year 2023-24 U.K.

(1) For the tax year 2023-24 the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.

(2) Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year.