What are the current tax rates and allowances?
Income tax allowances
| Allowances | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 |
|---|---|---|---|---|---|
| Personal Allowances | |||||
| Those born after 5 April 1948 | 11,500 | 11,850 | 12,500 | 12,500 | 12,570 |
| Those born between 6 April 1938 and 5 April 1948 | 11,500 | 11,850 | 12,500 | 12,500 | 12,570 |
| Those born before 6 April 1938 (i) | 11,500 | 11,850 | 12,500 | 12,500 | 12,570 |
| Income limit for personal allowance for those born before 6 April 1938 (ii) | N/A | N/A | N/A | N/A | N/A |
| Income limit for personal allowance (iii) | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 |
| Married Couple's Allowance: (iv) | |||||
| Maximum amount | 8,445 | 8,695 | 8,915 | 9,075 | 9,125 |
| Minimum amount | 3,260 | 3,360 | 3,450 | 3,510 | 3,530 |
| Income limit for Married Couple's Allowance for those born before 6 April 1935 | 28,000 | 28,900 | 29,600 | 30,200 | 30,400 |
| Blind Person's Allowance | 2,320 | 2,390 | 2,450 | 2,500 | 2,520 |
| Marriage Allowance (v) | 1,150 | 1,190 | 1,250 | 1,250 | 1,260 |
| Trading Allowance | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
| Property Allowance | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
(i) In 2015/16 only people born before 6 April 1938 are entitled to the age-related personal allowance. Individuals born on or after 6 April 1938 are entitled to the basic personal allowance.
(ii) The age-related personal allowance reduces where the individual's income in the tax year is above the income limit by £1 for every £2 above the limit until the level of the basic personal allowance is reached.
(iii) The personal allowance reduces where the individual’s income in the tax year is above the income limit by £1 for every £2 above the limit, until the level of the basic personal allowance is reached.
(iv) Married Couple’s Allowance may apply if one of the couple was born before 6 April 1935, relief given at 10%
(v) The allowance is the transferable part of the personal allowance, which applies to transfers between spouses or civil partners who were both born after 6 April 1935. It can be transferred where neither the transferer nor transferee is liable to income tax above the basic rate.
Tax Bands for England, Scotland and Wales
| Band | Band name | Tax Rate | ||
|---|---|---|---|---|
| Scotland | Wales | Rest of UK | ||
| £12,571* - £14,667 | Starter Rate | 19% | ||
| £12,571 - £50,270 | Basic Rate | 20% | 20% | |
| £14,668* - £25,296 | Scottish Basic Rate | 20% | ||
| £25,297* - £43,662 | Intermediate Rate | 21% | ||
| £43,663 - £150,000 | Higher Rate | 41% | ||
| £50,271 - £150,000 | Higher Rate | 40% | 40% | |
| £150,001 and above | Top Rate | 46% | ||
| £150,001 and above | Additional Rate | 45% | 45% |
* This assumes you are entitled to the UK personal allowance.
Savings Allowances
| Allowances | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 |
|---|---|---|---|---|---|
| Dividend Allowance | 5,000 | 2,000 | 2,000 | 2,000 | 2,000 |
| Personal Savings Allowance | |||||
| Basic rate taxpayer | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 |
| Higher rate taxpayer | 500 | 500 | 500 | 500 | 500 |
| Additional rate taxpayer | nil | nil | nil | nil | nil |
Income Tax Rates (Personal and Savings)
| 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | |
|---|---|---|---|---|---|
| Basic rate of 20% up to income of | 33,500 | 34,500 | 37,500 | 37,500 | 37,700 |
| Higher rate of 40% on income of | 33,501-150,000 | 34,501-150,000 | 37,501-150,000 | 37,501-150,000 | 37,701-150,000 |
| Additional rate of 45% on income of | 150,000+ | 150,000+ | 150,000+ | 150,000+ | 150,000+ |
| Start up rate of 0% on savings up to (within limits) | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
| Dividends basic rate taxpayer | 7.5% | 7.5% | 7.5% | 7.5% | 7.5% |
| Higher rate taxpayer | 32.5% | 32.5% | 32.5% | 32.5% | 32.5% |
| Additional rate taxpayer | 38.1% | 38.1% | 38.1% | 38.1% | 38.1% |
Capital gains tax
| 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 | |
|---|---|---|---|---|---|
| Standard rate * | 10% | 10% | 10% * | 10% * | 10% * |
| Rate for higher and additional rate taxpayers * | 20% | 20% | 20% * | 20% * | 20% * |
| Annual exemption | 11,300 | 11,700 | 12,000 | 12,300 | 12,300 |
| Entrepreneurs' Relief rate | 10% | 10% | 10% | 10% | 10% |
| Entrepreneurs' Relief lifetime limit | 10M | 10M | 10M | 10M | 10M |
| Inventors' Relief rate | 10% | 10% | 10% | 10% | 10% |
| Inventors' Relief lifetime limit | 10M | 10M | 10M | 10M | 10M |
* 8% surcharge for gains on residential property and carried gains. This makes the rates 18% and 28% respectively.
Inheritance tax
| Nil Rate Band (NRB) | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 |
|---|---|---|---|---|---|
| Chargeable lifetime transfers (after exemptions) | 325,000 | 325,000 | 325,000 | 325,000 | 325,000 |
| IHT nil rate | |||||
| Lifetime rate | 20% | 20% | 20% | 20% | 20% |
| Death rate | 40% | 40% | 40% | 40% | 40% |
| Residential nil rate band (RNRB) | N/A | 100,000 | 125,000 | 175,000 | 175,000 |
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