Tax Rates & Table

Tax Rates Allowances, Reliefs and Credits

Income Tax – taxable bands 2021-22 2020-21
Starting rate for savings: 0% £0 -5,000 £0 -5,000
Basic rate: 20% £0 -37,700 £0 -37,500
Higher rate: 40% £37,701 -150,000 £37,501 -150,000
Additional Rate: 45% £150,000 + £150,000 +
Dividends (effective rate)
Personal dividend allowance – first £2,000 0% 0%
Basic rate taxpayers 7.5% 7.5%
Higher rate taxpayers 32.5% 32.5%
Additional rate taxpayers 45% 38.1% 38.1%
Discretionary and Relevant Property Trusts*
Standard rate band £1,000 £1,000
Dividends (rate applicable to trusts – RAT) 38.1% 38.1%
Other income (rate applicable to trusts – RAT) 45% 45%
Interest In Possession Trusts
UK Dividends 7.5% 7.5%
Savings, rent and trading 20% 20%
Income Tax Allowances, Reliefs and Credits
Personal allowance (minimum) £12,570 £12,500
Trading allowance£1,000£1,000
Property income allowance£1000£1,000
Personal saving allowance (interest) for BR tax payer£1,000£1,000
Personal saving allowance (interest) for HR tax payer £500£500
Personal saving allowance (interest) for AR tax payer NilNil
Personal dividend allowance £2,000£2,000
Rent-a-room tax free home income*
*restricted to £3,750 if letting jointly
£7,500£7,500
Transferable Tax Allowance for Married couples & Civil partners £1,260£1,250
Married couples/Civil partnerships allowance (age 75+)(max) £9,125£9,075
Married couples/Civil partnerships allowance (age 75+)(min)£3,530£3,510
Income limit£30,400£30,200
National Insurance Contributions
Class 1 NIC- Employee (2% NIC on earning over £50,000)12%12%
Class 1 NIC- Employer13.8%13.8%
LEL£6,240£6,240
PTH£9,568£9,500
STH£8,840£8,788
UEL£50,270£50,000
Self-Employed Class 2 Flat rate p/w£3.05£3.05
Small profit limit£6,515£6,475
Self-Employed Class 4 on profit £9500/£9,568-£50,270 (2% NIC on earning over £50,270)9%9%
Voluntary Class 3 Flat rate p/w£15.40£15.30
Employment allowance per employer £4,000£4,000
Limits for other reliefs
Enterprise Investment Scheme (EIS) 30%30%
Maximum Investment* £1million£1million
*Increased to 2,000,000 for investments in knowledge intensive businesses from 6 April 2018
EIS capital gains re-investment Unlimited Unlimited
Seed Enterprise Investment Scheme (SEIS) 50%50%
Maximum Investment £100,000 £100,000
SEIS re-investment exemption 50%50%
Venture Capital Trusts (VCT) 30%30%
Maximum Investment £200,000£200,000
Capital Gains Tax
Standard rate taxpayers 10% 10%
Additional rate taxpayers 20% 20%
Discretionary and Interest in Possession Trusts 20% 20%
Residential property gain
Standard rate individuals 18%18%
Higher rate taxpayers and trusts 28%28%
Annual Exemptions
Individuals £12,300 £12,300
Most trusts £6,150£6,150
Chattels (5/3 taxable on excess above) £6,000£6,000
Entrepreneurs’ & Investor Relief
Entrepreneurs relief (in lifetime) *ER- 2 years holding & 5% conditions need to be satisfy£1million£1million
Investor Relief£10m£10m
ER & IR rate 10%10%
Pensions
Lifetime allowance £1,073,100 £1,073,100
Lifetime allowance charge (Lump sum) 55% (Lump sum) 55%
Annual allowance £40,000 £40,000
Annual allowance minimum£10,000£4,000
Threshold income limit£110,000£200,000
Adjusted income limit£150,000£240,000
Maximum tax free cash 25% of pension benefit value 25% of pension benefit value
Tax Free Savings
ISA annual limit£20,000£20,000
Junior ISA annual limit£9,000£9,000
Lifetime ISA annual limit£4,000£4,000
Help to buy ISA monthly limit£200£200
Inheritance Tax
Nil rate band£325,000£325,000
Residence nil rate band£175,000£175,000
Annual exempt amount£3,000£3,000
Rate on death (on excess)40%40%
Lifetime transfer to trust20%20%
Corporation Tax
Company Profits including Gain (FY Beginning on 1 April) 19% 19%
Patent Box 10%10%
Value Added Tax
Standard rate 20% 20%
Reduced rate 5%5%
VAT fraction 1/6 1/6
Registration Limit £85,000 £85,000
De-registration Limit £83,000 £83,000
Flat rate scheme turnover limit£150,000£150,000
Cash and annual accounting turnover limit1,350,0001,350,000
Capital Allowances
Annual Investment allowance (AIA) max £1m. p.a (£200,000 p.a from 1 January 2021)100%100%
FYA (new zero emission vehicles and car with CO2 50g/km or less)100%100%
Main rate (P&M- annual reducing balance)18%18%
Special rate6%6%
Structures and buildings (SL)3%3%
Structures and buildings (SL)-in freeport tax site10%
Super deduction (company only)
-New main rate assets130%
-New special rate assets50%
Research and Development
R&D for SME230%230%
R&D- Capital expenditure100%100%