All you need to know about Individual Savings Accounts, Pensions and Capital Gains Tax

Individual Savings Accounts (ISAs)

There has been no change to the annual ISA savings limits for 2022/23.

The table below shows the limits which can be invested:

Limits 2022/23
Standard Annual Limit £20,000 – cash (16 years old +) or stocks and shares (18 years old +) or a combination of both.
Junior ISA annual limit £9,000 – under 18s only, cannot be withdrawn until age 18.
Lifetime ISA annual limit £4,000 – 18-49 years, 25% added by government. Must be used to buy first home or withdrawn after age 60. Part of overall standard £20,000 limit

Personal pensions

The annual allowance limit for personal pension contributions remains at £40,000. The annual allowance is reduced by £1 for every £2 that total income exceeds £240,000 subject to a minimum of £4,000 where total income is over £312,000. Care does need to be taken when making personal pension contributions and specific advice should be sought to ensure that you are not impacted by the annual allowance excess charge.

The lifetime allowance for pension savings remains at £1,073,100.

Capital Gains Tax

The capital gains tax annual exemption remains at £12,300 for individuals and £6,150 for trusts.

The basic rate of capital gains tax payable remains at 10% (18% for the disposal of residential property and certain other assets) and the higher rate is 20% (28% for the disposal of residential property and certain other assets).

UK residents disposing of UK residential property who have tax to pay must file a return and pay the tax due within 60 days following the date of completion.

Non Resident Capital Gains Tax

Non-residents are subject to capital gains tax on the disposal of all UK land and property (to include commercial property).

In addition, non-residents are subject to UK capital gains tax on the disposal of assets that derive at least 75% of their value from UK land, so called “property-rich” companies. Non-residents are also required to comply with the capital gains tax return regime.

Author: Tax Team, Plus Accounting

Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.

Date Published: 30 May 2019

Last Updated: 8 August 2022

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