
Personal Income Tax Rates and Bands
Income Tax Rates and Bands
2021/22 | 2020/21 | ||
Band | Rate | Band | Rate |
£0 - £37,700 | 20% | £0 - £37,500 | 20% |
£37,701 - £150,000 | 40% | £37,501 - £150,000 | 40% |
Over £150,000 | 45% | Over £150,000 | 45% |
Savings income (2021/22 and 2020/21)
Savings allowance basic rate | £1,000 |
Savings allowance higher rate | £500 |
A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.
Dividend income (2021/22 and 2020/21)
Dividend allowance | £2,000 |
Dividend ordinary rate | 7.5% |
Dividend upper rate | 32.5% |
Dividend additional rate | 38.1% |
Income Tax Allowances
2021/22 | 2020/21 | |
Personal allowance | £12,570 | £12,500 |
Personal allowance income limit | £100,000 | £100,000 |
Marriage allowance | £1,260 | £1,250 |
Married couple’s allowance | £9,125 | £9,075 |
- minimum amount | £3,530 | £3,510 |
- income limit | £30,400 | £30,200 |
Blind person’s allowance | £2,520 | £2,500 |
Individual Savings Accounts
2021/22 | 2020/21 | |
Overall investment limit | £20,000 | £20,000 |
Junior account investment limit | £9,000 | £9,000 |
Capital Gains Tax
Individuals | 2021/22 | 2020/21 |
Exemption | £12,300 | £12,300 |
Standard rate | 10% | 10% |
Higher/additional rate | 20% | 20% |
Trusts Exemption | £6,150 | £6,150 |
Rate | 20% | 20% |
Higher rates (18/28%) may apply to the disposal of certain residential property interest.
Capital gains tax due from the disposal of UK residential property must be paid to HMRC within 30 days of date of disposal.
Business Asset Disposal Relief
The first £1m of qualifying gains are charged at 10%.Inheritance Tax
Death rate | Lifetime rate | Chargeable transfers 2021/22 and 2020/21 |
Nil | Nil | 0 - £325,000 (nil rate band) |
40% | 20% | Over £325,000 |
A further nil rate band of £175,000 may be available in relation to current or former residences.
National Insurance - 2021/22 Class 1 (employed) rates
Employee EmployerEarnings per week % Earnings per week %
Up to £184 Nil Up to £170 Nil
£184.01 - £967 12 Over £170 13.8
Over £967 2
Entitlement to contribution-based benefits for employees retained for earnings between £120 and £184 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £967 per week.
Class 1A (employers) 13.8% on employee taxable benefits
Class 1B (employers) 13.8% on PAYE Settlement Agreements
Class 2 (self-employed) flat rate per week £3.05 - small profits threshold £6,515 per annum
Class 3 (voluntary) flat rate per week £15.40
Class 4 (self-employed) 9% on profits between £9,568 and £50,270 plus 2% on profits over £50,270
Selected Rates
Weekly benefit | 2021/22 £ | 2020/21 £ |
Basic State Pension | 137.60 | 134.25 |
New State Pension | 179.60 | 175.20 |
Statutory pay standard rates | ||
- average weekly earnings £120 (£120) or over | ||
Sick Pay | 96.35 | 95.85 |
Maternity/Adoption Pay | 151.97 | 151.20 |
Shared Parental Pay | 151.97 | 151.20 |
Paternity Pay | 151.97 | 151.20 |
National Living Wage and National Minimum Wage
Age NLW 21-22 18-20 16-17 ApprenticesFrom 1 April 2021 £8.91 £8.36 £6.56 £4.62 £4.30
Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 23 and over.
Tax Reliefs For Individuals
Enterprise Investment Scheme (EIS)Relief on investments in certain unquoted trading companies up to £1m per annum (£2m for knowledge intensive companies):
- Income tax relief at 30% • Capital gains exemption on disposal
Seed Enterprise Investment Scheme (SEIS)
Relief on investments in certain unquoted trading companies up to £100,000 per annum:
- Income tax relief at 50% • Capital gains exemption on disposal
Venture Capital Trusts (VCTs)
Relief on investments in certain quoted companies up to £200,000 per annum:
- Income tax relief at 30% • Capital gains exemption on disposal
Pensions
2021/22 | 2020/21 | |
Lifetime Allowance limit | £1,073,100 | £1,073,100 |
Annual Allowance limit | £40,000 | £40,000 |
Money Purchase Annual Allowance | £4,000 | £4,000 |