TAX RATES, ALLOWANCES AND RELIEFS FOR 2021/2022
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£ (GBP) |
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Income limit for personal allowance |
£100,000 |
|
Personal allowance |
£12,570 |
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Married couple's allowance maximum amount (for those born before 6 April 1935) |
£9,125 |
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Married couple's allowance minimum amount (for those born before 6 April 1935) |
£3,530 |
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Transferable Tax Allowance for married couples and civil partners |
£1,260 |
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Blind person's allowance |
£2,520 |
Income Tax Rates
|
Rate on taxable income |
Band, £(GBP) |
Rate,% |
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Starting savings rate |
0 - £5,000 |
0* |
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Basic rate |
£0 - £37,700 |
20** |
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Higher rate |
£37,701 - £150,000 |
40*** |
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Additional rate |
over £150,000 |
45**** |
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* Starting savings rate is available for savings income only. The rate 0% is not available if taxable non-savings income exceeds £5,000. Dividend Allowance of £2,000 is tax free. |
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National Insurance Contributions
|
Weekly earnings £(GBP) |
Not contracted out |
|
Class I (employment) Employee’s rate |
|
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Up to £184 |
Nil |
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£184 to £967 |
12% |
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Over £967 |
2% |
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Employment allowance, per employer, per year* |
£4,000 |
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Employer’s rates |
|
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Up to £170 |
Nil |
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Above £170 |
13.8% |
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Class 2 Annual small earning exception is £6,515 per year Class 2 rate per week is £3.05 |
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Class 4 Lower annual earnings limit is £9,568 |
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Upper annual earnings limit is £50,270 |
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Class 4 rate below lower earnings limit |
0% |
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Class 4 rate between lower and upper earnings limit |
9% |
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Class 4 rate above upper earnings limit |
2% |
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* From 6 April 2020, the employment allowance will only apply to companies with an NIC bill of less than £100,000. No employers NIC for employees aged under 21 (and apprentices up to age 25) on earnings up to £967 per week (the upper earnings limit). |
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Capital Gains Tax
|
Standard rate taxpayers |
10% |
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Higher rate taxpayers |
20% |
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Rates for trustees and personal representatives |
20% |
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Individual annual exemption |
£12,300 |
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Trusts annual exemption |
£6,150 |
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Business asset disposal relief (Entrepreneurs’ relief) lifetime limit |
£1,000,000 |
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Entrepreneurs' relief rate |
10% |
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Residential property |
18% / 28% |
Individual Savings Accounts (ISAs) After 1 July 2014
|
Max annual contributions – Total overall annual investment limit a combination of amounts between a Cash and Stocks and Shares NISA, up to the overall annual limit of £20,000. |
£20,000 |
Stamp Duty (from 4 December 2014)
From 4 December 2014 the SDLT rates were changed by a new regime under which you will only pay the rate of tax on the part of the property price within each tax band.
3% surcharge in addition to the existing stamp duty land tax rates on additional or rental properties above £40,000 from 1 April 2016.
2% surcharge in addition to the existing stamp duty land tax rates if purchase is of residential property by certain non-UK residents on or after 1st April 2021.
5% surcharge in addition to the existing stamp duty land tax rates if purchase is of an additional residential property and by certain non-UK residents on or after 1st April 2021.
Stamp Duty (Initial Temporary Relief Period – 1 April 2021 to 30 June 2021)
|
Residential |
|
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£500,000 or less |
Nil |
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On the next £425,000* |
5% |
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On the next £575,000** |
10% / 15% |
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On the rest (above £1,500,000) |
12% / 15% |
Stamp Duty (Further Temporary Relief Period – 1st July 2021 to 30th September 2021)
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Residential |
|
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£250,000 or less |
Nil |
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On the next £625,000* |
5% |
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On the next £575,000 |
10% / 15% |
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On the rest (above £1,500,000) |
12% / 15% |
Stamp Duty (Standard rates from 1st October 2021 onwards)
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Residential |
|
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£125,000 or less |
Nil |
|
On the next £125,000* |
2% |
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On the next £675,000** |
5% / 15% |
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On the next £575,000 |
10% / 15% |
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On the rest (above £1,500,000) |
12% / 15% |
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Non-residential or mixed use |
|
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£150,000 or less - annual rent less than 1,000 |
Nil |
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£150,001 – £250,000 |
2% |
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Over £250,000 |
5% |
|
Shares and Securities |
Standard rate - 0.5%, higher rate - 1.5% |
Lease rentals (on grant): The net present value is charged at 1% on the excess over £125,000 for residential and 1% on the excess over £150,000 for non-residential or mixed use, land.
1.* The threshold for properties in disadvantaged areas is £150,000
2.** The 15% rate applies to properties over £500,000 purchased on or after 20 March 2014 by ‘non-natural persons’, such as a company
3. Special rules apply to stamp duty land tax on premiums where the annual rent exceeds £1,000
4. 2% surcharge on stamp duty and tax rates on commercial property with a net present value over £5 million
Capital Allowances
|
Annual investment allowance on new purchase of plant and machinery |
£200,000 |
|
First year allowance (FYA) for business expenditure on new low rate (0g/km) emission vehicles |
100% |
|
Writing-down allowances |
% |
|
Integral features, long Life plant and machinery and certain cars |
6 |
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Structures and buildings |
3 |
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Other plant and machinery (main writing down allowance rate) |
18 |
|
Vehicles with emissions less than or equal to 50g/km |
18 |
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Vehicles with emissions between 50g/km and 110g/km |
6 |
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Vehicles with emissions over 110g/km |
6 |
Annual Tax on Enveloped Dwellings
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Property value is from £500,000 to £1m |
£3,700 |
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Property value is from £1 million to £2 million |
£7,500 |
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Property value is from £2 million to £5 million |
£25,300 |
|
Property value is from £5 million to £10 million |
£59,100 |
|
Property value is from £10 million to £20 million |
£118,600 |
|
Property value is above £20 million |
£237,400 |
|
Disposal of ATED property gains are subject to capital gain tax |
28% |
Corporation Tax
|
Taxable profit £ (GBP)s |
|
|
Taxable profits (FY 1/04/2021-01/04/2022) |
19% |
VAT
|
Standard Rate |
20% |
|
Reduced Rate |
5% |
|
Zero Rate |
0% |
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Annual Turnover Limits for registration - last 12 months or if turnover is going to exceed within the next 30 days |
£ 85,000 |
|
Annual Turnover Limits for de-registration |
£ 83,000 |
Digital services tax
From 1 April 2020, a 2% tax on the UK related revenues of certain digital businesses with global in scope revenues exceeding £500m per annum applies to activities comprising search engines, social media platforms and online market places. The first £25m of in scope UK related revenues per annum is not subject to this charge.
Inheritance tax
|
IHT nil rate |
£325,000* |
|
Residence nil rate band (RNRB) |
£175,000** |
|
Over £325,000 |
40% |
|
Lower rate, when 10% or more of estate is left to a charity |
36% |
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Annual Exemption |
|
|
Annual gifts per donor per year |
£3,000 |
|
Small gifts per donee per year |
£250 |
|
Wedding gifts to each of your children |
£5,000 |
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Wedding gifts to each grandchild |
£2,500 |
|
Wedding gifts to others |
£1,000 |
*If someone’s estate is less than the Inheritance Tax threshold of £325,000, the remaining threshold can be transferred to their husband, wife or civil partner’s estate when they die.
** The RNRB is tapered by 1 for every £2 that the estate exceeds £2m.
Non-Domiciled Remittance Basis Charges (RBC)
|
Unremitted income less than 2,000 |
0% |
|
Resident in the UK at least 7 of previous 9 tax years |
£30,000 |
|
Resident in the UK at least 12 of previous 14 tax years |
£60,000 |
|
Resident in the UK at least 17 of the previous 20 tax years, if you’re reporting income you earned before 6 April 2017* |
£90,000* |
|
Personal allowance |
0 |
|
Capital Gains Tax Annual Exemption |
0 |
*Cancelled from 5th April 2017, once non-domiciled individuals were resident in the UK for at least 15 of the 20 tax years, they will be deemed UK domiciled for all tax purposes.
Pension Schemes Allowance
|
Annual Allowance |
£40,000 |
|
Lifetime Allowance |
£1,073,100 |
Tax efficient Savings and Investment
|
Venture Capital Trust up to |
£200,000 |
|
Seed Enterprise Investment Scheme up to |
£100,000 |
|
Enterprise Investment Scheme |
£1,000,000* |
|
Social Investment Tax Relief |
£1,000,000 |
*£2,000,000 for knowledge intensive companies
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