UK* TAX RATES AND BANDS
INCOME TAX ALLOWANCES |
2019/2020 |
2020/2021 |
Personal allowance (1) |
12,500 |
12,500 |
Income limit for personal allowance (1) |
100,000 |
100,000 |
Income limit for married couples allowance (2) |
29,600 |
30,200 |
Married couple’s allowance (2): |
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Maximum amount of married couple’s allowance (people born before 6 April 1935) |
8,915 |
9,075 |
Minimum amount of married couple’s allowance |
3,450 |
3,510 |
Marriage allowance (3) |
1,250 |
1,250 |
Blind person’s allowance |
2,450 |
2,500 |
Dividend allowance (4) |
2,000 |
2,000 |
Personal savings allowance (5): |
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Basic rate taxpayers |
1,000 |
1,000 |
Higher rate taxpayers |
500 |
500 |
Property allowance (6) |
1,000 |
1,000 |
Trading allowance (6) |
1,000 |
1,000 |
INCOME TAX RATES AND TAXABLE BANDS |
2019/2020 |
2020/2021 |
Starting rate for savings: 0%* |
0–5,000 |
0–5,000 |
Basic rate: 20% |
0–37,500 |
0–37,500 |
Higher rate: 40% |
37,501–150,000 |
37,501–150,000 |
Additional rate: 45% |
Over 150,000 |
Over 150,000 |
* There is a starting rate for savings income only. If non-savings income is above this limit then the starting rate for savings will not apply. |
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The dividend rate is the 7.5% ordinary rate (2019–20: 7.5%) and the 32.5% dividend upper rate (2019–20: 32.5%). In addition to these rates, there is a dividend additional rate of 38.1% (2019–20: 38.1%). |
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INHERITANCE TAX THRESHOLDS |
2019/2020 |
2020/2021 |
Nil rate band |
£325,000 |
£325,000 |
Residence nil rate band |
£150,000 |
£175,000 |
*Scotland and Wales may diverge from the remainder of the UK in some respects. |