Income tax, personal and married allowances

£ per year (unless stated)2021-222020-21Change
Personal allowance*12,57012,50070
Married couples’/civil partners allowance (born on or before 6 April 1935)**Transfer of up to £1260Transfer of up to £125010
Minimum married/civil partners allowanceTransfer of up to £1250Transfer of up to £12500

*Reduced by £1 for each £2 of income in excess of £100,000. In some cases, non-residents may not be entitled to personal allowance.

**Relief limited to 10%. Reduced to minimum allowance by £1 for every £2 over income limit. Apply personal allowance reduction first.

National Insurance contributions

£ per year (unless stated)2021-222020-21Change
Lower Earnings Limit6,2406,2400
Primary Threshold (PT)9.5689,50068
Secondary Threshold (ST)8.8408,78852
Upper Earnings Limit (UEL)50,27050,000270

Capital gains tax

£ per year (unless stated)2021-222020-21Change
Annual Exemption From Capital Gains12,30012,3000
Basic Rate (Residential Property)18%18%0
Basic Rate (Other Chargable Assets)10%10%0
Higher Rate (Residential Property)28%28%0
Higher Rate (Other Chargable Assets)20%20%0
Entrepreneurs Relief10%10%0

Stamp duty land tax

£ per year (unless stated)2021-222020-21Change
Lower Earnings Limit (Non-Residential)150,000
Lower Earnings Limit (Residential)125,0000
Primary Threshold (Non-Residental)Current SDLT Holidays in place150,000
Primary Threshold(Residential)125,000

*Residential rates may be increased by 3% where further residential properties are acquired

Blind Persons Allowance

£ per year (unless stated)2021-222020-21Change
Blind Persons Allowance2,5202,50020

Income Tax Rates

£ per year (unless stated)2021-222020-21Change
Basic Rate Tax20% on income between £12,571 and £50,2701 (you pay tax on £37,700)20% on income between £12,501 and £50,000
Higher Rate Tax40% on income between £50,271 and £150,000140% on income between £50,001 and £150,000
Additional Rate Tax45% on income above £150,00145% on income above £150,000

Scottish Income Tax Rates

£ per year (unless stated)2021-222020-21Change
Starter Rate (19% Tax Rate)£12,571 – £14,667£12,501 – £14,585
Basic Rate (20% Tax Rate)£14,668 – £25,296£14,586 – £25,158
Intermediate (21% Tax Rate)£25,297 – £43,662£25,159 – £43,430
High Rate (41% Tax Rate)£43,663 – £150,000£43,431 – £150,000
Additional Rate (46% Tax Rate)Over £150,000Over £150,000

Corporation Tax Rates

£ per year (unless stated)2021-222020-21Change
Corporation Tax Rate19%19%0

VAT Registration

£ per year (unless stated)2021-222020-21Change
VAT Registration Threshold85,00085,0000

General VAT Rules

£ per year (unless stated)2021-222020-21Change
Standard Rate20%20%0
Reduced Rate5%5%0
Zero Rate0%0%0

Mileage Allowances

£ per year (unless stated)2021-222020-21Change
Car/ Van (First 10,000 Miles)0.450.450
Car /Van (Over 10,000 Miles)0.250.250
Motorcycle0.240.240
Bicycle0.200.200