Chartered Management Accountants

Tax Rates & Allowances

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

Edinburgh Office:

Phone: 0131 516 3885
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Bonnington Bond,
2 Anderson Place,
Edinburgh,
EH6 5NP
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
info@stuartfergusonaccountants.co.uk

Falkirk Office:

Phone: 01324 632500
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Office 10,
16 Melville Street
Falkirk
FK1 1 HZ
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
info@stuartfergusonaccountants.co.uk