UK Tax Rates 2020/21: Thresholds, Allowances, Tax Rates, Bands

Income Tax Rates and Bands for 2020/21

Income Tax Rates and Bands for 2020/21 (other than savings and dividend income) are as follows –

2020/21
Band £	Rate %
0 - 37,500	20
37,501 - 150,000	40
Over 150,000	45

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

Saving Income Rates for 2020/21

Savings Income	2020/21
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.

Dividend Income Rates for 2020/21

Dividend Income	2020/21
Dividend allowance	£2,000
Dividend ordinary rate	7.5%
Dividend upper rate	32.5%
Dividend additional rate	38.1%

Income Tax Reliefs for 2020/21

	2020/21
Personal allowance	£12,500
Personal allowance income limit	£100,000
Marriage allowance	£1,250
Married couple’s allowance	£8,915
- minimum amount	£3,450
- income limit	£29,600
Blind person’s allowance	£2,450

Individual Savings Accounts Limit for 2020/21

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

Devolved Income Tax Rates and Bands for 2020/21

Scotland Devolved Income Tax Rates and Bands for 2020/21

2020/21
Band £	Rate %
0 - 2,049	19
2,050 - 12,444	20
12,445 - 30,930	21
30,931 - 150,000	41
Over 150,000	46

Wales Devolved Income Tax Rates and Bands for 2020/21

2020/21
Band £	Rate %
0 - 37,500	20
37,501 - 150,000	40
Over 150,000	45

Capital Gains Tax Rates for Individuals and Trusts for 2020/21

Individuals	2020/21
Exemption	£12,000
Standard rate	10%
Higher/additional rate	20%
Trusts	2020/21
Exemption	£6,000
Rate	20%

Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest.

Entrepreneurs’ Relief and Investors’ Relief

The first £10m of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.

Inheritance Tax Rates for 2020/21

Chargeable transfers 2020/21	Death rate	Lifetime rate
0 - £325,000 (nil rate band)	Nil	Nil
Over £325,000	40%	20%

Car, Van and Fuel Benefits 2020/21

Company Cars 2020/21		For diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions over 94g/km if the CO2figure does not end in a 5 or 0 round down to the nearest 5 or 0.
CO2 emissions g/km	Percentage of car’s list price taxed
0-50	16
51-75	19
76-94	22
for every additional 5	additional 1%
165 and above	37% (maximum)

Car fuel benefit	£24,100
Van benefit	£3,430
Van fuel benefit	£655
Cars and vans mileage allowance	Rate per mile
Up to 10,000 miles	45p
Over 10,000 miles	25p

National Insurance Rates for 2020/21

2020/21 Class 1 (employed) rates
Employee		Employer
Earnings per week	%	Earnings per week	%
Up to £166	Nil	Up to £166	Nil
£166.01 - £962	12	Over £166	13.8
Over £962	2

Entitlement to contribution-based benefits for employees retained for earnings between £118 and £166 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 £3.00 small profits threshold £6,365 per annum
Class 3 (voluntary)	flat rate per week £15.00
Class 4 (self-employed)	9% on profits between £8,632 and £50,000 plus 2% on profits over £50,000

Selected Rates for 2020/21

	2020/21
Weekly benefit	£
Basic State Pension	129.20
New State Pension	168.60
Statutory pay standard rates	- average weekly earnings £118 (£116) or over
Sick Pay	£95.85 p.w. from 6th April 2020
Maternity/Adoption Pay	£151.20 p.w. from 6th April 2020
Shared Parental Pay	£151.20 p.w. from 6th April 2020
Paternity Pay	£151.20 p.w. from 6th April 2020

National Living Wage and National Minimum Wage

Age	NLW	21-24	18-20	16-17	Apprentices
From 1 April 2019	£8.21	£7.70	£6.15	£4.35	£3.90

Applies to apprentices under 19, or 19 and over in the first year of apprenticeship.
NLW applies to those aged 25 and over.

Tax Reliefs for Individuals: 2020/21

Enterprise Investment Scheme (EIS)	Seed Enterprise Investment Scheme (SEIS)	Venture Capital Trusts (VCTs)
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	Relief on investments in certain unquoted trading companies up to £100,000 per annum: Income tax relief at 50% Capital gains exemption on disposal	Relief on investments in certain quoted companies up to £200,000 per annum: Income tax relief at 30% Capital gains exemption on disposal
Unlimited amounts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment.	Capital gains from the disposal of other assets may be exempt up to £50,000 per annum by making an SEIS investment.	Dividends received from VCTs may be exempt from income tax. All reliefs subject to detailed conditions being met.

Corporation Tax Rates for 2020/21

	Rate %
Year to 31.3.21	19
Year to 31.3.20	19

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

Capital Allowances for 2020/21

First Year Allowance (FYA) On certain energy-efficient plant, machinery and cars up to 50g/km	100%
Annual Investment Allowance (AIA)	£1,000,000 (£200,000)
Writing Down Allowance Expenditure not qualifying for AIA or FYA:
Long-life assets, integral features of buildings, cars over 110g/km.	6% (8%)
Other plant and machinery	18%
Structures and Buildings Allowance From 29 October 2018 straight-line basis	2%

Pensions Limit: 2020/21

	2020/21
Lifetime Allowance limit	£1,055,000
Annual Allowance limit	£40,000
Money Purchase Annual Allowance	£4,000

Value Added Tax (VAT) Rates and Limit: 2020/21

	From 1^st April 2020
Standard rate	20%
Reduced rate	5%
Annual Registration Limit	£85,000
Annual Deregistration Limit	£83,000

Property Tax Rates: 2020/21

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
125,001 - 250,000	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 on 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