Tax Data Guide 2020/21 (Corporation tax, Stamp...

Corporation tax

Financial year to 31/03/2021 31/03/2020
Rate 19% 19%

Stamp taxes

Shares and marketable securities 0.5%³
Transfers of land and buildings₄
Residential (on band of consideration)₅,₆,₇
£0 – £125,000 0%
£125,001 – £250,000 2%
£250,001 – £925,000 5%
£925,001 – £1,500,000 10%
Over £1,500,000 12%
Non-residential (on band of consideration)
£0 – £150,000 0%
£150,001 – £250,000 2%
Over £250,000 5%
Leases (Rent – on band of net present value)₄
Residential Non-residential                  
£0 – £125,000 £0 – £150,000                            0%
Over £125,000 £150,001 – £5,000,000            1%
N/A Over £5,000,000                         2%
Premiums₄
Duty on premiums is the same as for transfers of land.

1 Subject to lifetime limit on gains of £1 million.
2 Subject to lifetime limit on gains of £10 million.
3 Rounded up to the nearest multiple of £5. Transactions of £1,000 or less exempt.
4 Transfers of land and leases in Scotland are chargeable to land and buildings transaction tax, and in Wales to land transaction tax. Different rates of tax may apply.
5 Where the consideration exceeds £500,000 and the purchase is by – or by a partnership including – a company or collective investment scheme enveloping the property, the rate is 15% of the total consideration.
6 Where the consideration is no more than £500,000 and the purchaser is a first-time buyer, the 0% band is increased to £300,000 (and the 5% rate applies to any consideration above £300,000). Includes qualifying shared ownership property.
7 Rates are increased by 3 percentage points for certain purchases, including purchases of additional residential properties by individuals. Transactions under £40,000 are excluded.

Car benefit

2020/21 – cars first registered after 5 April 2020
CO2 emissions 
g/km
 

Electric range (miles)

% of list price CO2 emissions g/km % of list price
0 N/A 0 100-104 23
1-50 >130 0 105-109 24
1-50 70-129 3 110-114 25
1-50 40-69 6 115-119 26
1-50 30-39 10 120-124 27
1-50 <30 12 125-129 28
51–54 13 130-134 29
55–59 14 135-139 30
60–64 15 140-144 31
65–69 16 145-149 32
70–74 17 150-154 33
75–79 18 155-159 34
80–84 19 160-164 35
85–89 20 165-169 36
90–94 21 170 or more 37
95–99 22

Rates are 2% higher (up to max 37%) for cars registered before 6 April 2020.
4% supplement (up to max 37%) applies to diesel cars which do not meet the RDE2 standard.

Car fuel benefit

For 2020/21, car fuel benefit is calculated by applying the above car benefit percentage to a figure of £24,500.

Capital allowances

Dredging Rate%
(straight-line basis)
Writing-down allowance 4
Know-how
(reducing balance basis)
Writing-down allowance 25
Mineral extraction
(reducing balance basis)
Writing-down allowances
General 25
Acquisition of mineral asset 10
Patent rights
(reducing balance basis)
Writing-down allowance 25
Plant and machinery
(reducing balance basis)
Annual investment allowance – max £1,000,000 pa
(max £200,000 pa from 1/1/2021) 100
First-year allowances
New cars with CO2 emissions 50 g/km or less 100
New gas refuelling stations 100
New zero-emission goods vehicles 100
New assets for use in designated
areas of enterprise zones (companies only) 100
New electric charge-point equipment 100
Writing-down allowances
General 18
Cars (other than low-emission cars) 6
Special rate expenditure
(including integral features and thermal insulation) 6
Long-life assets 6
Research and development
Allowance 100
Structures and buildings
(straight-line basis)
Writing-down allowance 3

Value added tax

Standard rate 20%
Reduced rate 5%
Registration threshold £85,000 pa
Deregistration limit £83,000 pa
Annual accounting scheme turnover limit £1,350,000 pa
Cash accounting scheme turnover limit £1,350,000 pa
Flat rate scheme turnover limit £150,000 pa

Investment reliefs

Investment limit Income tax relief rate
Enterprise investment scheme £1,000,000 30%
Venture capital trusts £200,000 30%
Seed enterprise investment scheme £100,000 50%
Social investment relief £1,000,000 30%

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