With the majority of tax rates and bands for 2022/23 already announced in the Spring Budget, the Chancellor’s focus turned to away from further tax raising measures and on to spending to boost economic growth.

Read our summary of the key points from today's Budget and a reminder of the announcements in the March Budget.

Pensions and savings

• Pension top-ups for low earners -  Low earners with earning less than their personal allowance can miss out on tax relief if they are members of schemes where employee contributions are collected from gross pay before tax. HMRC will identify these individuals and each will become entitled to a top-up from 2025/26, averaging £53 a year.
• Pension tax relief - There were no changes to pension tax relief in the Chancellor’s Budget.
• ISAs - The 2022/23 annual subscription limits for adult and junior ISAs will remain at £20,000 and £9,000 respectively.

Income tax

• Dividends - It was confirmed that the rate of tax for dividends will increase by 1.25%. This will mean the new dividends rates for individuals will be 8.75% (basic), 33.75% (higher) and 39.35% (additional). The rate for trustees will be 39.35% on amounts in excess of the trust’s standard rate band.
• Allowances and thresholds - The personal allowance will remain frozen at £12,570 with the basic rate band also remaining frozen at £37,700, meaning that the higher rate tax threshold remains at £50,270. The personal allowance and higher rate threshold will remain fixed until 2025/26. 
• Scotland - The Scottish Budget will take place on 9 December when we  can expect to hear of any changes to the rates and bands for Scottish taxpayers. Of course, the Scottish rates of tax only apply to non-savings income. So Scottish will continue to pay tax on savings and dividend income in line with the rest of the UK.  
• Wales - Income tax rates, bands and allowances for Welsh taxpayers remain fully aligned with the rest of the UK.

Capital Gains Tax

• No further changes announced.

Inheritance tax

• No further changes announced.

Corporation tax

• No further changes announced.

National insurance

The Budget confirmed that an extra 1.25% will be added to the rates of National Insurance for 2022/23 for employees, employers and the self-employed to help pay the reforms to social care. It's intended that the 1.25% rise will become a separate standalone levy from 2023/24.