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

 


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