Tax Tables 2021/22
Published: 06/04/21 By: Andrew Springthorpe
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% | ||
A Provides allowances of 130% on most new plant and machinery investments by companies that ordinarily qualify for 18% main rate writing down allowances.
B 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).
