Tax Data Card 2021-22

: Last Updated: 02 February 2022

A summary of key tax rates and allowances for 2021-22 and 2020-21.

Income Tax

Income Tax

Personal allowances	2021-22	2020-21
Personal allowance (PA)	£12,570	£12,500
PA restricted by £1 for every £2 of income over	£100,000	£100,000
Transferable tax allowance for certain married couples	£1,260	£1,250
Blind person's allowance	£2,520	£2,500
Married couples' allowance (at least one born pre 6 Apr 1935): Maximum (relief given at 10%) Minimum (relief given at 10%)	£9,125 £3,530	£9,075 £3,510

Other allowances	2021-22	2020-21
Personal savings allowance: Basic rate Higher rate Top rate	£1,000 £500 £0	£1,000 £500 £0
Maximum savings starting rate (non-savings income < PA) Reduces by £1 for every £1 of non-savings income > PA	£5,000	£5,000
Dividends allowance	£2,000	£2,000
Rent-a-room allowance	£7,500	£7,500
Trading allowance	£1,000	£1,000
Property allowance	£1,000	£1,000

Income tax bands and rates	2021-22	2020-21
Basic rate band: Savings Non-savings Dividends Gift aid and pension contributions can extend basic rate band	£37,700 20% 20% 7.5%	£37,500 20% 20% 7.5%
Higher rate band: Savings Non-savings Dividends	£37,701-£150,000 40% 40% 32.5%	£37,501-£150,000 40% 40% 32.5%
Higher rate band: Savings Non-savings Dividends	£150,000+ 45% 45% 38.1%	£150,000+ 45% 45% 38.1%
Rates applicable to trusts: Savings Non-savings Dividends	45% 45% 38.1%	45% 45% 38.1%

Non-domicile remittance basis charge (RBC)	2021-22	2020-21
De minimis unremitted foreign income and gains	£2,000	£2,000
UK resident 7 of last 9 tax years RBC	£30,000	£30,000
UK resident 12 of last 14 tax years RBC	£60,000	£60,000
UK resident 17 of last 20 tax years RBC	N/A	N/A
UK resident 15 of last 20 tax years RBC	Deemed domiciled	Deemed domiciled

Child benefit	2021-22	2020-21
One child (per week)	£21.15	£21.05
Additional children (per week)	£14.00	£13.95
Reduced by 1% for every £100 of income over	£50,000	£50,000
Child benefit fully repayable if income over	£60,000	£60,000

Savings & investments

ISA	2021-22	2020-21
ISA annual limit (cash and shares combined)	£20,000	£20,000
Lifetime ISA annual limit	£4,000	£4,000
Lifetime ISA withdrawal charge	20%	20%
Help to buy ISA limit per month, initial month extra £1,000	£200	£200
Junior ISA annual limit	£9,000	£9,000

Venture capital	2021-22	2020-21
Maximum individual investment: Enterprise Investment Scheme (EIS) EIS, where amounts over £1m invested in 'knowledge-intensive companies Seed EIS (SEIS) Venture Capital Trust (VCT) Social Investment Tax Relief (SITR)	£1,000,000 £2,000,000 £100,000 £200,000 £1,000,000	£1,000,000 £2,000,000 £100,000 £200,000 £1,000,000
Maximum income tax reduction: EIS SEIS VCT SITR test	30% 50% 30% 30%	30% 50% 30% 30%

Pensions	2021-22	2020-21
Lifetime allowance Excess taxed at: 55% for cash drawn 25% for income drawn	£1,073,100	£1,073,100
Annual allowance maximum	£40,000	£40,000
Annual allowance minimum	£4,000	£4,000
Maximum tax-relieved contributions with no relevant earnings	£3,600	£3,600
Money purchase annual allowance	£4,000	£4,000

CGT

Exemptions	2021-22	2020-21
Annual exemption for individuals	£12,300	£12,300
Annual exemption for trusts generally	£6,150	£6,150
Chattels max gain 5/3rds x proceeds less exempt amount of...	£6,000	£6,000

Rates	2021-22	2020-21
Individuals: Basic rate Above basic rate Additional surcharge applicable to residential property gains	10% 20% 8%	10% 20% 8%
Trusts Additional surcharge applicable to residential property gains	20% 8%	20% 8%
Companies	See corporation tax

Reliefs	2021-22	2020-21
Business Asset Disposal Relief - qualifying lifetime limit	£1,000,000	£1,000,000 (from 11/3/2020)
Investors' Relief - qualifying lifetime limit	£10,000,000	£10,000,000
Both reliefs result in CGT at 10% on qualifying gains

IHT

Exemptions and nil rates	2021-22	2020-21
Nil rate band	£325,000	£325,000
Residence nil rate band	£175,000	£175,000
Maximum at nil rate including nil rate band transfers from spouse	£1,000,000	£1,000,000

Rates	2021-22	2020-21
Chargeable lifetime transfers	20%	20%
Transfers on, or within seven years of, death (excess over nil rate band)	40%	40%
Transfers on death, where 10% or more left to charity	36%	36%
Taper relief on IHT payable for gifts made within seven years of death	0 - <3 years 3 - <4 years 4 - <5 years 5 - <6years 6 - <7 years More than 7 years	0% 20% 40% 60% 80% Exempt

Exemptions	2021-22	2020-21
Gifts to UK domiciled spouse (or non-dom with domicile election)	Unlimited	Unlimited
Gifts to non-domiciled spouse (additional to nil rate band)	£325,000	£325,000
Annual exemption (per donor): can be carried forward one year	£3,000	£3,000
Small gifts exemption (per donee)	£250	£250
Wedding gift from parent	£5,000	£5,000
Wedding gift from grandparent	£2,500	£2,500
Wedding gift from others	£1,000	£1,000
Regular gifts out of income	Unlimited	Unlimited
Business property relief: Controlling interest in listed company Personal assets used by partnership or company you control Interest in a trading business Shares in an unquoted trading company (including AIM-listed)	50% relief 50% relief 100% relief 100% relief	50% relief 50% relief 100% relief 100% relief
Agricultural property relief (applicable to agricultural value)	100% relief	100% relief

VAT

VAT	2021-22	2020-21
Registration threshold (taxable turnover, i.e. excl. exempt)	£85,000	£85,000
Deregistration threshold	£83,000	£83,000
Rates: Standard Reduced Zero	20% 5% 0%	20% 5% 0%
Fractions: Standard Reduced	1 / 6 1 / 21	1 / 6 1 / 21
Cash accounting & annual accounting: Taxable turnover upper limit for joining Taxable turnover upper limit for leaving	£1,350,000 £1,600,000	£1,350,000 £1,600,000
Flat rate scheme: Taxable turnover upper limit for joining Anniversary test: leave if total income (incl. exempt) greater than stay if total income in next 12 months will be less than	£150,000 £230,000 £191,500	£150,000 £230,000 £191,500
Flat rate scheme limited cost trader (LCT): LCT applies if spend on relevant goods in the quarter is: Less than total income (incl. exempt) x OR, less than LCT rate (reduce by 1% first 12 months of registration)	2% £250 16.5%	2% £250 16.5%
Partial exemption de-minimis: Recover VAT if input VAT attributable to exempt supplies is: on average less than and, as a proportion of total input VAT is no more than	£625 per month 50%	£625 per month 50%

Stamp Duties & ATED

Stamp Duty	2021-22	2020-21
Newly issued shares	0%	0%
Stocks and marketable securities with consideration over £1,000	0.5%	0.5%

Stamp Duty Land Tax - residential property	2021-22	2020-21
First time buyers where cost of property < £500,000: £0 - £300,000 £300,000 - £500,000 If the cost is more than £500,000 then the normal rates apply.	0% 5%	0% 5%
£0 - £125,000	0%	0%
£125,001 - £250,000	2%	2%
£250,001 - £925,000	5%	5%
£925,001 - £1,500,000	10%	10%
£1,500,001 +	12%	12%
Note: owing to Coronavirus, the nil rate of SDLT is extended to £500,000 from 8 July 2020 to 30 June 2021. The nil rate will then fall to £250,000 until 30 September 2021 before returning to £125,000 as above.
Supplement for second home/buy to let and companies Not applicable if consideration less than	3% £40,000	3% £40,000
Higher rate for non-natural person with non-qualifying activity (applies to companies, partnerships with a company partner and collective investment schemes)	15% if >£500,000	15% if >£500,000
Surcharge for non-UK residents	2%	N/A

Stamp Duty Land Tax - non-residential or mixed property	2021-22	2020-21
£0 - £150,000	0%	0%
£150,001 - £250,000	2%	2%
£250,001 +	5%	5%

Annual Tax on Enveloped Dwellings	2021-22	2020-21
Applies if market value on valuation date exceeds	£500,000	£500,000
Valuation dates	1 April 2017	1 April 2017
Annual charge if taxable value is £500,001 - £1,000,000	£3,700	£3,700
£1,000,001 - £2,000,000	£7,500	£7,500
£2,000,001 - £5,000,000	£25,300	£25,200
£5,000,001 - £10,000,000	£59,100	£58,850
£10,000,001 - £20,000,000	£118,600	£118,050
£20,000,001 +	£237,400	£236,250

Corporation Tax & Capital Allowances

Corporation Tax	2021-22	2020-21
Rate	19%	19%
S455 tax on loans to participators	32.5%	32.5%

Patent box and R&D	2021-22	2020-21
Patent box effective rate	10%	10%
Research and development (R&D) capital expenditure relief	100%	100%
R&D total enhanced deduction for SMEs	230%	230%
R&D tax credit rate on surrendable loss for SMEs	14.5%	14.5%
R&D large company above the line credit	13%	13%

Capital allowances	2021-22	2020-21
Annual Investment Allowance (100%) up to	£1,000,000 to 31 December 2021, then £200,000	£1,000,000
Super deduction (expenditure between 1 April 2021 and 31 March 2023)	130%	N/A
Super deduction (special rate assets)	50%	N/A
Plant and machinery general pool writing down allowance (WDA)	18%	18%
Integral features and certain long-life assets WDA	6%	6%
Small pool WDA where balance <£1,000	100%	100%
FYA for electric charge-points	100%	100%
Structures and buildings allowance (SBA)	3%	3%

Capital allowance - cars	2021-22	2020-21
New and unused with CO2 emissions of 0g/km	100%	100%
New and unused with CO2 emissions of up to 50g/km	18%	100%
New and second hand up to 110g/km	6%	18%
New and second hand above 110g/km	6%	6%
Include cars used by sole traders or partnerships with private use in a single asset pool

National Insurance

National Insurance Contributions

Class 1 (Employers & Employees)

	2021-22		2020-21
	Employee	Employer	Employee	Employer
Main NIC rate	12%	13.8%	12%	13.8%
No NIC on first	£184 pw	£170 pw	£183 pw	£169 pw
Main rate charged up to	£967 pw	No limit	£962 pw	No limit
2% on earnings above	£967 pw	N/A	£962	N/A
Employment allowance per business*	N/A	£4,000	N/A	£4,000

* Certain businesses do not qualify e.g. sole director companies and employers with an employer’s Class 1 NIC liability of £100,000 or more.

Self-employed (TBA for 2021/22)

	2021-22	2020-21
Class 2 (Self employed)
Flat rate per week	£3.05	£3.05
Small profits threshold	£6,515	£6,475
Class 3 (Voluntary)
Flat rate per week	£15.40	£15.30
Class 4 (Self employed)
On profits £9,568 to £50,270	9.0%	9.0%
On profits over £50,270	2.0%	2.0%

Squirrel ad

Are you enjoying our content?

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our unique FREE Tax Planning Tips and Advice Guide & our FREE OMB Newsletter.

Enjoying the Practical Tax content on www.rossmartin.co.uk?

Main Menu

Income Tax

Savings & investments

CGT

IHT

VAT

Stamp Duties & ATED

Corporation Tax & Capital Allowances

National Insurance

What's new?