National Insurance and Stamp Duty Land Tax Changes
2022/23 was quite a year for both Stamp Duty Land Tax (SDLT) and National Insurance contributions (NICs). For the latter, not only did we have the usual tax year changes from 6 April 2022, but we also had two further changes in July and November. In this article, we clarify which SDLT and NIC rates you should be using in your upcoming CII exam(s) – particularly relevant to R01, R03, AF1, R02, AF4, CF6, and R07.
This article is relevant to examinable tax years 2022/23 and 2023/24 and is correct as at 11 May 2023.
CII Exams Based on the 2022/23 Tax Year
If you’re sitting your CII exam on 31 August 2023 or before, then you will be examined on the rules in place in the 2022/23 tax year.
Stamp Duty Land Tax (SDLT)
For SDLT, this means you’ll be tested on the rates that came into effect on 23rd September 2022 as follows:
| Rate | Residential land/property - on or after 23 Sept 22 | Rate | Non-residential land/property | |
|---|---|---|---|---|
| 0% | £0 - £250,000 | 0% | £0 - £150,000 | |
| 5% | Above £250,000 to £925,000 | 2% | Above £150,000 to £250,000 | |
| 10% | Above £925,000 to £1.5m | 5% | Over £250,000 | |
| 12% | Over £1.5m | |||
National Insurance Contributions (NICs)
For NICs, this means you’ll be tested on the rates that came into effect on 6th November 2022 as follows:
| Employee Class 1 | First £242 per week = £0 Then to £967 per week = 12% (if director, rate is 12.73%) Above £967 per week = 2% (if director, rate is 2.73%) |
| Employer Class 1 | First £175 per week = £0 Over £175 per week = 13.8%, no ceiling (if director, rate is 14.53%) |
| Employer Class 1A | On taxable employee benefits = 14.53% |
| Class 2 | Weekly flat rate £3.15 |
| Class 4 | Main hybrid rate – 9.73% Lower annual limit £11,908 Upper annual limit £50,270 Hybrid additional rate on earnings above upper limit – 2.73% |
Exams Based on the 2023/24 Tax Year
If you’re sitting your exam on or after 1 September 2023, then you will be examined on the rules in place in the 2023/24 tax year.
Stamp Duty Land Tax (SDLT)
For SDLT, this means you’ll be tested on the rates that came into effect on 23rd September 2022 as above.
National Insurance Contributions (NICs)
For NICs, this means you’ll be tested on the rates that came into effect on 6th April 2023 as follows:
| Employee Class 1 | First £242 per week = £0 Then to £967 per week = 12% Above £967 per week = 2% |
| Employer Class 1 | First £175 per week = £0 Over £175 per week = 13.8%, no ceiling |
| Employer Class 1A | On taxable employee benefits = 13.8% |
| Class 2 | Weekly flat rate £3.45 |
| Class 4 | Main rate – 9% Lower annual limit £12,570 Upper annual limit £50,270 Additional rate on earnings above upper limit – 2% |
We do hope you’ve found this a useful summary to clear up any doubts as to which rates will be tested in your exam(s).
Don’t forget you’ll be able to access the CII’s tax tables during your exam, and these will show you the figures that are relevant to the tax year the exam is based on. The tax tables are available here to review before your exam. Note that they contain both SDLT and NIC rates, so taking time to familiarise yourself with the tables prior to your exam is time well spent.
Grab the resources you need!
If you’re studying for your CII R03 exam, and you’re aiming for a comfortable pass, you need to get all the practice you can. Grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R03 mock paper taster now!
Alternatively, you can try the taster for R01, AF1, R02, AF4, CF6, or R07 if you’re studying for any of those exams.
