Tax Tables 2021/22

See our handy tax tables for the 2021/22 tax year below. These tables have been prepared based on the Budget announcements made on 3 March 2021.

INCOME TAX RATES
  2021/22 Rate 2020/21 Rate Notes
Individuals – UK          
Starting rate £1 – £5,000 20% £1 – £5,000 20% A
Basic rate £5,001 – £37,700 20% £5,001 – £37,500 20% B, C
Higher rate £37,701 – £150,000 40% £37,501 – £150,000 40% B
Additional rate Over £150,000 45% Over £150,000 45% B
Trusts          
Standard rate £1 – £1,000 20% £1 – £1,000 20% B
Trust rate Over £1,000 45% Over £1,000 45% B

 

A Rate on non dividend savings income up to £5,000 is 0%, where taxable non savings income does not exceed £5,000.
B A dividend allowance taxes the first £2,000 dividends received at 0%. Dividends above this limit are taxed at 7.5% for basic and standard rate taxpayers, 32.5% for higher rate taxpayers and 38.1% for additional and trust rate taxpayers.
C Basic rate band increased by gross Gift Aid donations and most personal pension contributions.

 

 

INCOME TAX ALLOWANCES
  2021/22 2020/21 Notes
Basic personal allowance £12,570 £12,500 A, B
Married/civil partners allowance £9,125 £9,075 B, C
Minimum married/civil partners allowance £3,530 £3,510 B, C
Income limit for married/civil partners allowance £30,400 £30,200  
Blind persons allowance £2,520 £2,500  
Rent a room relief limit £7,500 £7,500  
Savings allowance £1,000 £1,000 D
Trading income allowance £1,000 £1,000 E
Property income allowance £1,000 £1,000 E

 

A Reduced by £1 for every £2 of income over £100,000.
B Non residents may not be entitled to personal allowances, in certain circumstances.
C Available to persons born before 6 April 1935. Relief limited to 10%. Reduced to minimum allowance by £1 for every £2 over income limit. Minimum allowance reduced by £1 for every £2 income over £100,000 after applying personal allowance reduction.
D £500 for higher rate and £nil for additional rate taxpayers.
E If gross income in excess of £1,000, a deduction of £1,000 instead of actual expenses is permitted.

 

 

PENSION CONTRIBUTIONS
  2021/22 2020/21 Notes
Annual allowance £40,000 £40,000 A
Lifetime allowance £1,073,100 £1,073,100  

 

A Up to the lower of 100% of earnings or the maximum contribution. Maximum contribution is the annual allowance, plus unutilised allowances from the three previous tax years. Up to £3,600 may be contributed irrespective of earnings. Annual allowance reduced by £1 for every £2 income over £240,000.

 

 

CAPITAL GAINS TAX
  2021/22 2020/21 Notes  
Annual exemption        
Individuals £12,300 £12,300    
Trust £6,150 £6,150    
Business asset disposal relief (lifetime allowance) £1,000,000 £1,000,000    
Investors’ relief (lifetime allowance) £10,000,000 £10,000,000    
Individuals and trusts        
Basic and starting rate taxpayers 10% 10% A  
Higher and additional rate taxpayers 20% 20% A  
Trusts and personal representatives 20% 20% A  
Rate where business asset disposal/investors’ relief applies 10% 10%    

 

A Gains on chargeable residential property taxed at 28%.

 

 

INHERITANCE TAX
  2021/22 2020/21 Notes
Nil rate band (NRB) 0% 0% A
Over £325,000 40% 40% B, C

 

A Additional residence nil rate band (RNRB) of £175,000 for transfers of a main residence to direct descendants.
B Some lifetime gifts are taxed at 20%.
C Tax rate reduced to 36% where 10% or more of net chargeable estate is left to charity.

 

 

NATIONAL INSURANCE CONTRIBUTIONS
Class 1        
Employer   Employee    
Earnings per week Rate Earnings per week Rate  
£0.01 – £170.00 Nil £0.01 – £184.00 Nil  
Over £170.00 13.8% £184.01 – £967.00 12%  
    Over £967.00 2%  
Class 1A and 1B (employers only) 13.8%      
Class 2 (self employed) £3.05 per week (small profits threshold £6,515)
Class 3 (voluntary) £15.40 per week
Class 4 (self employed) Profits up to £9,568 0%  
  Profits from £9,569 to £50,270 9%  
  Profits above £50,270 2%  

 

The first £4,000 of employer’s liability relieved by the employment allowance for employers with an NIC bill of less than £100,000.

No employers NIC for employees aged under 21 (and apprentices up to age 25) on earnings up to £967 per week (the upper earnings limit).

 

 

CORPORATION TAX
  2021/22 2020/21
Corporation tax 19% 19%
Loans to participators 32.5% 32.5%

 

 

CAPITAL ALLOWANCES
  2021/22 2020/21 Notes  
Plant and machinery        
Full expensing: super deduction 130% N/A A  
Full expensing: special rate first year allowances 50% N/A B  
Annual investment allowance 100% 100% C  
Long life assets and integral features 6% 6%    
Other assets 18% 18%    
First year allowances 100% 100%    
Cars: CO2 emissions (g/km)        
0 100% 100%    
1 to 50 18% 18%    
Over 50 6% 6%    

 

Provides allowances of 130% on most new plant and machinery investments by companies that ordinarily qualify for 18% main rate writing down allowances.
Allowance of 50% on most new plant and machinery investments by companies that ordinarily qualify for 6% special rate writing down allowances.
C
 Maximum annual investment allowance £1m per annum from 1 January 2019 to 31 December 2021 (£200,000 per annum to 31 December 2018 and from 1 January 2022).

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