Tax Data
Income Tax
Rates and bands (other than savings and dividend income)
| 2020/21 | 2019/20 | ||
|---|---|---|---|
| Band £ | Rate % | Band £ | Rate % |
| 0 - 37,500 | 20 | 0 - 37,500 | 20 |
| 37,501 - 150,000 | 40 | 37,501 - 150,000 | 40 |
| Over 150,000 | 45 | Over 150,000 | 45 |
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
| Savings income | 2020/21 and 2019/20 |
|---|---|
| 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 | 2020/21 and 2019/20 |
|---|---|
| Dividend allowance | £2,000 |
| Dividend ordinary rate | 7.5% |
| Dividend upper rate | 32.5% |
| Dividend additional rate | 38.1% |
| Reliefs | 2020/21 | 2019/20 |
|---|---|---|
| Personal allowance | £12,500 | £12,500 |
| Personal allowance income limit | £100,000 | £100,000 |
| Marriage allowance | £1,250 | £1,250 |
| Married couple’s allowance - minimum amount - income limit |
£9,075 £3,510 £3,450 |
£8,915 £30,200 £29,600 |
| Blind person’s allowance | £2,500 | £2,450 |
Capital Gains Tax
| Individuals | 2020/21 | 2019/20 |
|---|---|---|
| Exemption | £12,300 | £12,000 |
| Standard rate | 10% | 10% |
| Higher/additional rate | 20% | 20% |
| Trusts | ||
| Exemption | £6,150 | £6,000 |
| Rate | 20% | 20% |
Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.
Entrepreneurs’ Relief The first £10m of qualifying gains are charged at 10%. This is reduced to £1m for disposals on or after 11 March 2020 subject to certain transitional rules.
National Insurance
| 2020/21 Class 1 (employed) rates | |||
|---|---|---|---|
| Employee | Employer | ||
| Earnings per week | % | Earnings per week | % |
| Up to £183 | Nil | Up to £169 | Nil |
| £183.01 - £962 | 12 | Over £169 | 13.8 |
| Over £962 | 2 | ||
Entitlement to contribution-based benefits for employees retained for earnings between £120 and £183 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 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 £6,475 per annum. Class 3 (voluntary) flat rate per week £15.30. Class 4 (self-employed) 9% on profits between £9,500 and £50,000 plus 2% on profits over £50,000.
Car, Van and Fuel Benefits
| 2020/21 | Cars registered pre 6.4.20 | Cars registered after 5.4.20 |
|---|---|---|
| CO2 emissions g/km | % of list price taxed | % of list price taxed |
| 0 | 0 | 0 |
| 1-50 | ||
| Electric range - 130 or more | 2 | 0 |
| 70 - 129 | 5 | 3 |
| 40 - 69 | 8 | 6 |
| 30 - 39 | 12 | 10 |
| under 30 | 14 | 12 |
| 51-54 | 15 | 13 |
| For every extra 5 | +1 | +1 |
| 160 and above | 37 | n/a |
| 170 and above | n/a | 37 |
For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.
| 2020/21 | |
|---|---|
| Car fuel benefit | £24,500 |
| Van benefit | £3,490 |
| Van fuel benefit | £666 |
Inheritance Tax
| Death rate | Lifetime rate | Chargeable transfers 2020/21 and 2019/20 |
|---|---|---|
| Nil | Nil | 0 - £325,000 (nil rate band) |
| 40% | 20% | Over £325,000 |
A further nil rate band of £175,000 (£150,000 for 2019/20) may be available in relation to current or former residences.
Corporation Tax
| Rate % | Rate % | ||
|---|---|---|---|
| Year to 31.3.21 | 19 | Year to 31.3.20 | 19 |
Different rates apply for ring-fenced (broadly oil industry) profit.
Capital Allowances
| First Year allowance (FYA) on certain plant, machinery and cars up to 50g/km | 100% |
| Annual Investment Allowance (AIA) £1,000,000 (£200,000 from 1 January 2021) Excludes cars and expenditure already qualifying for FYA | |
| Writing Down Allowance Expenditure not qualifying for AIA or FYA: | |
| Long-life assets, integral features of buildings, cars over 110g/km | 6% |
| Other plant and machinery | 18% |
| Structures and Buildings Allowance From April 2020 | 3% |
Value Added Tax
| From 1.4.20 | From 1.4.19 | |
|---|---|---|
| Standard rate | 20% | 20% |
| Reduced rate | 5% | 5% |
| Annual Registration Limit | £85,000 | £85,000 |
| Annual Deregistration Limit | £83,000 | £83,000 |
Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting/refraining from action as a result of this information can be accepted by the authors or firm.
Selected Rates
| 2020/21 | 2019/20 | ||||
|---|---|---|---|---|---|
| Weekly benefit | £ | £ | |||
| Basic State Pension | 134.25 | 129.20 | |||
| New State Pension | 175.20 | 168.60 | |||
| Statutory pay standard rates - average weekly earnings £120 (£118) or over | |||||
| Sick Pay | 95.85 | 94.25 | |||
| Maternity/Adoption Pay | 151.20 | 148.68 | |||
| Shared Parental Pay | 151.20 | 148.68 | |||
| Paternity Pay | 151.20 | 148.68 | |||
| National Living Wage and National Minimum Wage | |||||
| Age | NLW | 21-24 | 18-20 | 16-17 | Apprentices |
| From 1 April 2020 | £8.72 | £8.20 | £6.45 | £4.55 | £4.15 |
Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 25 and over.
Stamp Duty Land Tax
Land and buildings in England and N. Ireland. Residential rates may be increased by 3% where further residential properties are acquired.
| Residential (£) | Rate (%) | Non-residential (£) | Rate (%) |
|---|---|---|---|
| 0 - 125,000 | 0 | 0 - 150,000 | 0 |
| 125,001 - 250,000 | 2 | 150,001 - 250,000 | 2 |
| 250,001 - 925,000 | 5 | Over 250,000 | 5 |
| 925,001 - 1,500,000 | 10 | ||
| Over 1,500,000 | 12 |
First-Time Buyer relief may apply to residential purchases up to £500,000.
Copyright © 2013 - Oury Clark.