Tax Data Guide 2020/21 (Income tax allowances,...

Income tax allowances  
Rates2020/212019/20
Personal allowance£12,500£12,500
Income limit£100,000£100,000
Transferable marriage allowance£1,250£1,250
Married couple’s allowance (relief at 10%)
Either partner born before 6.4.1935£9,075£8,915
Income limit£30,200£29,600
Minimum where income exceeds limit£3,510£3,450
Blind person’s allowance£2,500£2,450
Dividend allowance£2,000£2,000
Personal savings allowance
Basic rate taxpayers£1,000£1,000
Higher rate taxpayers£500£500

Income tax rates

Taxable income2020/212019/20Rate %Dividend rate %
£0 – £37,500£0 – £37,500207.5
£37,501 – £150,000£37,501 – £150,0004032.5
Over £150,000Over £150,0004538.1
Scottish taxpayers (non-savings, non-dividend income only)
Taxable income2020/212019/20Rate %
£0 - £2,085£0 - £2,04919
£2,085 - £12,658£2,049 - £12,44420
£12,658 - £30,930£12,444 - £30,93021
£30,930 - £150,000£30,930 - £150,00041
Over £150,000Over £150,00046

 

 

 

 

 

 

Welsh taxpayers. For 2020/21 and 2019/20, the Welsh rates and bands are the same as for the rest of the UK (except Scotland).
A 0% starting rate for savings income only applies to the extent that such income falls within the first £5,000 of taxable income. If taxable non-savings income exceeds the limit, the starting rate does not apply. 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.
A 0% rate applies to dividend income within the dividend allowance.
The trust rate of income tax is 45%. The dividend trust rate is 38.1%.

National Insurance Contributions

Class 1 (Earnings related)2020/21
Employees
Weekly earnings
First £183Nil
£183.01 – £96212%
Over £9622%
Employers
Weekly earnings
First £169Nil
Over £16913.8%

Employees’ rates are reduced to 5.85% for married women with valid certificates of election but the 2% rate above £962 still applies. Rates are nil for employees over state pensionable age. Normal employers’ contributions are still payable. Employers’ rates for employees under 21 and apprentices under 25 are nil on earnings up to £962 per week.
Employment allowance
(per employer) – £4,000 a year.
Available only where the employer’s NIC liability for the previous tax year was less than £100,000.
Class 1A and Class 1B – 13.8%
Class 2 (Self-employed) – Flat rate £3.05 a week.
Small profits threshold £6,475 a year.
Class 3 (Voluntary contributions) – £15.30 a week.
Class 4 (Self-employed) – 9% of profits between £9,500
and £50,000 a year. 2% of profits above £50,000 a year.

Inheritance Tax

2020/212019/20
Nil-rate band£325,000£325,000
Residence nil-rate band£175,000£150,000
Rate of tax on excess40%40%
Chargeable lifetime transfers20%20%
Annual gifts of up to £3,000 per donor are exempt.

Capital Gains Tax

Annual exempt amounts  2020/21Rates
Individuals, disabled trusts, personal representatives
for year of death and two years thereafter£12,300
Trusts generally£6,150
Rates 2020/21
Individuals: Standard rate10%
Higher rate20%
Trustees and personal representatives20%
Gains on residential property and carried interest18% / 28%
Gains to which entrepreneurs’ relief applies10%
Gains to which investors’ relief applies10%

Individual Savings Accounts

Limits2020/212019/20
Annual limit£20,000£20,000
Junior ISA annual limit£9,000£4,368
Lifetime ISA annual limit£4,000£4,000
Help to Buy ISA monthly limit£200£200

Tax-Free Mileage Allowances

Employee’s own vehicle
Motorcars and vans2020/21
Up to 10,000 business miles45p
Over 10,000 business miles25p
Each passenger making same trip5p
Motorcycles24p
Cycles20p
Advisory fuel rates for company car from 1 March 2020
Cylinder capacityPetrolDieselLPG
0-1,400 cc12p-8p
0-1,600 cc-9p-
1,401 cc - 2,000 cc14p-10p
1,601 cc - 2,000 cc-11p-
Over 2,000 cc20p13p14p

Fixed Rate Deductions:
Unincorporated Businesses

Vehicle expenditureAmount per mile 
Motorcars and goods vehicles
Up to 10,000 business miles45p
Over 10,000 business miles25p
Motorcycles24p
Business use of home
Hours worked per month
Amount per month
25 or more£10
51 or more£18
101 or more£26
Private use of business premisesDisallowable
Number of occupants amount per month
1£350
2£500
3 or more£650

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