Armstrongs Chartered Accountants, Coventry, Nuneaton & Hinckley, UK

Income Tax Rates

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%

Income Tax Reliefs

	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

Pensions

	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

Car, Van and Fuel Benefits

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

Individual Savings Accounts

	2020/21	2019/20
Overall investment limit	£20,000	£20,000
Junior account investment limit	£9,000	£4,368

Corporation Tax

	Rate %		Rate %
Year to 31.03.21	19	Year to 31.03.20	19

Different rates apply for ring-fenced (broadly oil industry) profit.

Capital Allowances

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%

Structures and Buildings Allowance - 3%
From April 2020

Value Added Tax

	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

Capital Gains Tax

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.

Inheritance Tax

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.

Property Taxes

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

National Insurance

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. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 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

Selected Rates

	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.

Tax Relief for Individuals

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.