Tax Rates 2020/2021
|Personal Savings Allowance (Basic Rate Taxpayers)||£1,000|
|Personal Savings Allowance (Higher Rate Taxpayers)||£500|
The Personal Allowance is the amount of income a person can get before they pay tax.
Income Limits For Tapering
The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.
|Income Limits For Tapering||£100,000|
|Income Limit (Born before 6 April 1948)*||£29,600|
Married Couples Allowance
Married Couple’s Allowance could reduce your tax bill each year if you’re married or in a civil partnership.
Married Couple’s Allowance could reduce your tax bill by between £351 and £907.50 a year.
You can claim Married Couple’s Allowance if all the following apply:
- you’re married or in a civil partnership
- you’re living with your spouse or civil partner
- one of you was born before 6 April 1935
If you marry or register a civil partnership, you’ll get the allowance on a pro-rata basis for the rest of that tax year.
If one of you dies or you divorce or separate, the allowance continues until the end of the tax year. You can transfer your Married Couple’s Allowance to your spouse or civil partner.
If you and your spouse or civil partner are separated through circumstance rather than through a decision to formally separate, you can still claim Married Couple’s Allowance.
|Married Couples Allowance||£9,075|
|Minimum Married Couples Allowance||£3,510|
Transferable Tax Allowance
Marriage Allowance lets you transfer £1,250 of your Personal Allowance to your husband, wife or civil partner – if they earn more than you.
|Blind Person’s Allowance||£2,500|
You can transfer the Blind Person’s Allowance, or the unused part of it, to your spouse or civil partner if you don’t pay tax or can’t use all of it. This can be done whether or not they are blind. If both you and your spouse or civil partner qualifies for Blind Person’s Allowance you can claim an allowance each.
Claims can be backdated by up to 4 years
Student Loans Thresholds and Repayment Rates
Thresholds and Rates for Plan 1 (pre-Sep 2012) and Plan 2 (post-Sep 2012).
Income Tax Bands and Percentages
Starting rate for savings
You may also get up to £5,000 of interest tax-free. This is your starting rate for savings.
The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be.
If your other income is £17,500 or more
You’re not eligible for the starting rate for savings if your other income is £17,500 or more.
If your other income is less than £17,500
Your starting rate for savings is a maximum of £5,000. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.
|Starting Rate (Savings only *)||£0 – £5,000||0%|
|Basic Rate||£0 – £37,500||20%|
|Higher Rate||£37,501 – £150,000||40%|
|Additional/Top Rate||Over £150,000||45%|
National Insurance Rates and Allowances
To find your classification look up your NIC letter on your payslip/return.
Shared Banding For All NICs
|Lower Earnings Limit (Weekly)||£120|
|Upper Earnings Limit (Weekly)||£962|
|Primary Threshold (Weekly)||£183|
|Secondary Threshold (Weekly)||£169|
Rates for Class 1 NICs
|Between Primary Threshold and Upper Earnings Limit||12%|
|Above Upper Earnings Limit||2%|
|Employers’ Rate Above Secondary Threshold||13.8%|
|Class 1A Rate On Employer Provided Benefits||13.8%|
Self Employed Class 2 and Class 4 NICs
|Class 4 Lower Profits Limit (Annual)||£9,500|
|Class 4 Upper Profits Limit (Annual)||£50,000|
|Class 4 Rate Between Lower and Upper Profits||9%|
|Class 4 Rate Above Upper Profits||2%|
|Class 2 Earnings Exception Limit||£6,365|
|Class 2 Weekly Amount||£3.05|
|Class 2 Weekly Amount (Share Fisherman)||£3.70|
|Class 2 Weekly Amount (Volunteer Development Workers)||£6.00|
Voluntary Class 3 NICs
Corporation Tax Rates and Limits
Marginal relief has been eliminated since 2015/16, Corporation Tax has been set at 19% for all company sizes.
Capital Gains Tax Rates and Annual Exempt Amounts
Annual Exempt Amount
|Individuals, Personal Reps and Trustees for Disable People||£12,300|
CGT Tax Rates
|Individuals – Basic Rate Taxpayer (Residential Property)||18%|
|Individuals – Higher Rate Taxpayer (Residential Property)||28%|
|Individuals – Basic Rate Taxpayer (Other Gains)||10%|
|Individuals – Higher Rate Taxpayer (Other Gains)||20%|
|Personal Representative of a Deceased Individual (Residential Property)||28%|
|Personal Representative of a Deceased Individual (Other Gains)||20%|
|Gains Qualifying for Entrepreneurs’ Relief||10%|