Tax rates and reliefs
| 2020/21 | Taxable Income |
Income Rate |
Dividend Rate |
| Starting Savings Rate * | 0-5,000 | 0% | 0% |
| Basic Rate | 0-37,500 | 20% | 7.5% |
| Higher Rate | 37,501-150,000 | 40% | 32.5% |
| Additional Rate | >150,000 | 45% | 38.1% |
Child Benefit charge is applied at 1% of benefit for each £100 of income for the tax year between £50,000-£60,000
* A 0% rate applies to savings income falling within the personal savings allowance. Income taxable at the starting rate for savings does not fall within the personal savings allowance.
| 2019/20 | Taxable Income |
Income Rate |
Dividend Rate |
| Starting Savings Rate ** | 0-5,000 | 0% | 0% |
| Basic Rate | 0-37,500 | 20% | 10% |
| Higher Rate | 37,501-150,000 | 40% | 32.5% |
| Additional Rate | >150,000 | 45% | 38.1% |
** The starting savings rate only applies to savings income. If an individual’s taxable non-savings income is above the starting rate limit the 0% starting rate will not apply.
| Income Tax Reliefs | 2020/21 | 2019/20 |
| Personal Allowance – general | 12,500 | 12,500 |
| Dividend Allowance | 2,000 | 2,000 |
|
Personal Savings Allowance – Basic Rate taxpayers – Higher Rate taxpayers |
1,000 500 |
1,000 500 |
| (For 2019/20 and 2020/21 reduce PA by £1 for every £2 adjusted net income over £100,000) | ||
| Married Couple’s Allowance (relief 10%) 75+ | 9,075 | 8,915 |
| Married Couple’s Allowance (relief 10%) minimum amount | 3,510 | 3,450 |
| Age Allowance Income Limit – (reduce allowance by £1 for every £2 of adjusted net income over threshold) | N/A | N/A |
Further Tax Rates
| Corporation Tax Rates | Year to 31.3.21 | Year to 31.3.20 |
| Small Company rate (£0 – £300,000) | 19% | 19% |
| Main rate (> £1,500,000) | 19% | 19% |
| Effective marginal rate (£300,001-£1,500,000) | 19% | 19% |
| Capital Gains Tax | 2020/21 | 2019/20 |
| Annual exemption | 12,300 | 12,000 |
| Value Added Tax | 2020/21 | 2019/20 |
| VAT Registration Threshold | 85,000 | 85,000 |
| Inheritance Tax | 2020/21 | 2019/20 |
| Rate | 40% | 40% |
| Nil Rate Band/Residential NRB | 325,000/125,000 | 325,000/100,000 |
| 2020/21 | 2019/20 | |
| Max Personal Pension Contribution | 40,000 | 40,000 |