2020 2021 income tax brackets4/7/2024 ![]() Personal Savings Allowance for higher rate taxpayersįrom April 2016, the new Personal Savings Allowance means that basic rate taxpayers do not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers do not have tax to pay on their first £500 of savings income. Personal Savings Allowance for basic rate taxpayers The relief for this allowance is given at 10%. Minimum amount of Married Couple’s Allowance ![]() Maximum amount of Married Couple’s Allowance Married Couple’s Allowance for those born before 6 April 1935 The recipient must not be liable to Income Tax at the higher or additional rates. A spouse or civil partner who is not liable to income tax or not liable at the higher or additional rates, can transfer this amount of their unused Personal Allowance to their spouse or civil partner. This transferable allowance is available to married couples and civil partners who are not in receipt of Married Couple’s Allowance. It is reduced by £1 for every £2 of income over this limit. The income limit for Married Couple’s Allowance is an age-related allowance. This reduction applies irrespective of date of birth. The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. ![]() Income limit for Married Couple’s Allowance Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trustees Special rates for trustees’ income Special rates for trustees’ income Starting rates for savings income Starting rates for savings income Default rates Default ratesĪpply to non-savings and non-dividend income of any taxpayer that is not subject to either the main rates or the Scottish rates of Income Tax. Dividend rates Dividend ratesĭividend ordinary rate – for dividends otherwise taxable at the basic rateĭividend upper rate – for dividends otherwise taxable at the higher rateĭividend additional rate – for dividends otherwise taxable at the additional rateĪpply to dividend income received above the £2,000 tax-free dividend allowance. From tax year 2017 to 2018, the main rates were separated into the main rates, the savings rates and the default rates. These figures apply to non-dividend income, including income from savings, employment, property or pensions. Personal tax and benefits Income Tax bands of taxable income (£ per year) It also covers all announcements made at Budget 2020 and subsequently. This annex includes Spring Budget 2021 announcements of the main rates and allowances.
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