
Tax Rates and Allowances
Below are various tables to help you work out your tax rates and allowances.
Tax Rates 2020/21 and 2019/20
Income Tax | 2020/21 | 2019/20 | |
Starting savings rate | 0% | £0 -£5,000 | £0 – £5,000 |
Basic Rate | 20% | £0 -£37,500 | £0 – £37,500 |
Higher Rate | 40% | £37,501 – £150,000 | £37,500 – £150,000 |
Additional Rate | 45% | Over £150,000 | Over £150,000 |
Dividends Received | 2020/21 | 2019/20 | |
Dividend Allowance | £2,000 | £2,000 | |
Basic Rate | 7.5% | 7.5% | |
Higher Rate | 32.5% | 32.5% | |
Additional Rate | 38.1% | 38.1% | |
Main Personal Allowanced | 2020/21 | 2019/20 | |
Trading and Property Income | £1,000 | £1,000 | |
Personal Savings Allowance (PSA) | £1,000 | £1,000 | |
PSA Higher Rate Taxpayers | £500 | £500 | |
Personal Allowance | £12,500 | £12,500 | |
Income limit for Personal All. | £100,000 | £100,000 | |
Transferable Married Allowance | £1,250 | £1,250 | |
Rent a Room Relief | £7,500 | £7,500 | |
CGT Allowance | £12,300 | £12,000 | |
CGT Allowance Trusts & Estates | £6,150 | £6,000 | |
Capital Gains Tax | Residential | Other | 2019/20 |
Up to Basic Rate | 18% | 10% | 10% |
Over Basic Rate | 28% | 20% | 20% |
Trusts & Estates | 28% | 20% | 20% |
Entrepreneurs £10m | 10% | 10% | |
Corporation Tax | 2020/21 | 2019/20 | |
Corporation Tax Rate | 19% | 19% | |
SME R&D Relief | 130% | 130% | |
Large Co R&D Credit (RDEC) | 13% | 12% | |
VAT 20% | 2020/21 | 2019/20 | |
Threshold | £85,000 | £85,000 | |
Deregistration | £83,000 | £83,000 | |
National Insurance | 2020/21 | 2019/20 | |
Class 1 | |||
Lower Earnings limit | £120 | £118 | |
Primary threshold | £183 | £166 | |
Employee | 12% | £183.01 – £962 | £166.01 – £962 |
Employee higher rate | 2% | Over £962 | Over £962 |
Employer & Class 1A | 13.8% | Over £169 | Over £166 |
Class 2 – Self Employed | |||
Flat rate per week | £3.05 | £3.00 | |
Annual Profit Threshold | £6,475 | £6,365 | |
Class 3 – Voluntary | |||
Flat rate per week | £15.30 | £15.00 | |
Class 4 – Self Employed | |||
Profits | 9% | £9,500 – £50,000 | £8,632 – £50,000 |
Profits | 2% | Over £50,000 | Over £50,000 |
Minimum Wages | April 2020 | April 2019 | |
Workers 25 and over | £8.75 | £8.21 | |
Workers 21 to 24 | £8.20 | £7.70 | |
Workers 18 to 20 | £6.45 | £6.15 | |
Workers 16 to 17 | £4.55 | £4.35 | |
Apprentices 16 to 18 | £4.15 | £3.90 | |
Inheritance Tax | 2020/21 | 2019/20 | |
Nil rate band | £325,000 | £325,000 | |
Rate on excess | 40% | 40% | |
Capital Allowances excl Cars | 2020/21 | 2019/20 | |
Annual Investment Allowance | £1,000,000 | £1,000,000 | |
P&M | 18% | 18% | |
Long-life assets | 6% | 8% | |
Official Interest Rate | 2.5% | 2.5% | |
Pension Schemes | 2020/21 | 2019/20 | |
Lifetime Allowance | £1,073,100 | £1m | |
Annual Allowance | £40,000 | £40,000 |