Resources
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 | 2021/20 and 2019/20 |
---|---|
Dividend allowance | £2,000 |
Dividend ordinary rate | 7.5% |
Dividend upper rate | 32.5% |
Dividend additional rate | 38.1% |
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 | £9,075 | £8,915 |
- minimum amount | £3,510 | £3,450 |
- income limit | £30,200 | £29,600 |
Blind person's allowance | £2,500 | £2,450 |
2020/21 | 2019/20 | |
---|---|---|
Lifetime Allowance limit | £1,073,100 | £1,055,000 |
Annual Allowance limit | £40,000 | £40,000 |
Money Purchase Annual Allowance | £4,000 | £4,000 |
Company cars 2020/2021 | ||
---|---|---|
2020/2021 | 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 | additional 1% | additional 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 1st September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%.
For emissions over 75g/km 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 |
2020/21 | 2019/20 | |
---|---|---|
Overall investment limit |
£20,000
|
£20,000 |
Junior account investment limit |
£9,000
|
£4,368
|
Rate % | Rate % | ||
---|---|---|---|
Year to 31.03.21 | 19 | Year to 31.03.20 | 19 |
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 qualifiying 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%
From 01.04.20 |
From 01.04.19
|
|
---|---|---|
Standard rate |
20%
|
20% |
Reduced rate |
5%
|
5%
|
Annual Registration Limit |
£85,000
|
£85,000
|
Annual Deregistration Limit |
£83,000
|
£83,000
|
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.
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.
Across the whole of the UK, residential rates may be increased by 3% (4% in Scotland) where further residential properties are acquired.
Stamp Duty Land Tax
Land and buildings in England and N. Ireland
Residential Band £ | Rate % | Non-residential Band £ | 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.
Land and Buildings Transaction Tax
Land and buildings in Scotland
Residential Band £ | Rate % | Non-residential Band £ | Rate% |
---|---|---|---|
0 - 145,000 | 0 | 0 -150,000 | 0 |
145,001 - 250,000 | 2 | 150,001 - 250,000 | 1 |
250,001 - 325,000 | 5 | Over 250,000 | 5 |
325,001 - 750,000 | 10 | ||
Over 750,000 | 12 |
First-time Buyer relief may apply to the first £175,000 of residential purchases.
Land Transaction Tax
Land and buildings in Wales.
Residential Band £ | Rate % | Non-residential Band £ | Rate% |
---|---|---|---|
0 - 180,000 | 0 | 0 -150,000 | 0 |
180,001 - 250,000 | 3.5 | 150,001 - 250,000 | 1 |
250,001 - 400,000 | 5 | 250,001 - 1,000,000 | 5 |
400,001 - 750,000 | 7.5 | Over 1,000,000 | 6 |
750,001 - 1,500,000 | 10 | ||
Over 1,500,000 | 12 |
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. |
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 |
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 1st 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 age 25 and over.
Enterprise Investment Scheme (EIS)
Relief on investments in certain unquoted trading companies up to £1m per annum (£2m for knowledge intensive companies):
Income tax relief at 30%
Capital gains exemption on disposal
Unlimited amonts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment.
Seed Enterprise Investment Scheme (SEIS)
Relief on investments in certain unquoted trading companies up to £100,000 per annum:
Income tax relief at 50%
Capital gains exemption on disposal
Capital gains from the disposal of other assets may be exempt up to £50,000 per annum by making an SEIS investment.
Venture Capital Trusts (VCTs)
Relief on investments in certain quoted companies up to £200,000 per annum.
Income tax relief at 30%
Capital gains exemption on disposal
Dividends received from VCTs may be exempt from income tax.
All reliefs subject to details conditions being met.
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 Armstrongs.
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