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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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