Current tax rates and allowances.
| UK excluding Scottish taxpayers’ non-dividend, non-savings income | 2021/22 | 2020/21 |
|---|---|---|
| 20% basic rate on first slice of taxable income up to: | £37,700 | £37,500 |
| 40% higher rate on next slice of taxable income over: | £37,700 | £37,500 |
| 45% additional rate on income over: | £150,000 | £150,000 |
| All UK taxpayers | 2021/22 | 2020/21 |
|---|---|---|
| Starting rate at 0% – on band of savings income up to** | £5,000 | £5,000 |
| Personal savings allowance at 0% tax rate: | ||
| - Basic rate taxpayers | £1,000 | £1,000 |
| - Higher rate taxpayers | £500 | £500 |
| - Additional rate taxpayers | £0 | £0 |
| Dividend allowance at 0% tax - all individuals | £2,000 | £2,000 |
| Tax rates on dividend income: | ||
| - Basic rate taxpayers | 7.5% | 7.5% |
| - Higher rate taxpayers | 32.5% | 32.5% |
| - Additional rate tax payers | 38.1% | 38.1% |
| Trusts | 2021/22 | 2020/21 |
|---|---|---|
| Standard rate band generally | £1,000 | £1,000 |
| Rate applicable to trusts: Dividends | 38.1% | 38.1% |
| Other income | 45% | 45% |
| Non-domicile remittance basis charge | 2021/22 | 2020/21 |
|---|---|---|
| After UK residence in at least 7 of the last 9 tax years | £30,000 | £30,000 |
| After UK residence in at least 12 of the last 14 tax years | £60,000 | £60,000 |
** Not available if taxable non-savings income exceeds the starting rate band.
Scottish income tax rates and bands
| Scottish taxpayers – non-dividend, non-savings income | 2021/22 | 2020/21 |
|---|---|---|
| 19% starter rate on income up to | £2,097 | £2,085 |
| 20% basic rate on slice of income up to | £12,726 | £12,658 |
| 21% intermediate rate on next slice up to | £31,092 | £30,930 |
| 41% higher rate on next slice up to | £150,000 | £150,000 |
| 46% top rate on income over | £150,000 | £150,000 |
Child Benefit Charge
| High Income Child Benefit Charge | 1% of benefit per £100 of adjusted net income between £50,000 and £60,000 |
Main Personal Allowances and Reliefs
| Personal Allowance (PA) | 2021/22 | 2020/21 |
|---|---|---|
| Personal (basic) * | £12,570 | £12,500 |
| Marriage / civil partner’s transferable allowance | £1,260 | £1,250 |
| Married couple’s / civil partner’s allowance at 10% (if at least one born before 6/4/35) ** | ||
| - maximum | £9,125 | £9,075 |
| - minimum | £3,530 | £3,510 |
| Blind person’s allowance | £2,520 | £2,500 |
| Rent-a-room relief tax-free income | £7,500 | £7,500 |
| Registered pension schemes | ||
| - Lifetime allowance | £1,073,100 | £1,073,100 |
| - Annual allowance3 | £40,000 | £40,000 |
| - Money purchase annual allowance | £4,000 | £4,000 |
* Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000.
** Reduced by £1 for every £2 of adjusted net income over £29,600 (£28,900 for 2018/19), until the minimum is reached.
Non-domicile remittance basis charge after UK residence in at least
| Non-domicile remittance basis charge | 2021/22 | 2020/21 |
|---|---|---|
| After UK residence in at least 7 of the last 9 tax years | £30,000 | £30,000 |
| After UK residence in at least 12 of the last 14 tax years | £60,000 | £60,000 |
