The Chancellor announced the following income tax rates and allowances.
Income tax rates and bands
2021/22 |
2020/21 |
||
Band £ |
Rate % |
Band £ |
Rate % |
| 0 – 37,700 | 20 | 0 – 37,500 | 20 |
| 37,701 – 150,000 | 40 | 37,501 – 150,000 | 40 |
| Over 150,000 | 45 | Over 150,000 | 45 |
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
Savings income |
2021/22 |
2020/21 |
|
| Savings allowance basic rate | £1,000 | £1,000 | |
| Savings allowance higher rate | £500 | £500 |
A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.
Dividend income |
2021/22 |
2020/21 |
| Dividend allowance | £2,000 | £2,000 |
| Dividend ordinary rate | 7.5% | 7.5% |
| Dividend upper rate | 32.5% | 32.5% |
| Dividend additional rate | 38.1% | 38.1% |
Personal allowances |
2021/22 |
2020/21 |
Personal allowance |
£12,570 |
£12,500 |
Personal allowance income limit |
£100,000 |
£100,000 |
| Marriage allowance
Transferable between certain spouses where neither pay tax above the basic rate |
£1,260 |
£1,250 |
Married couple’s allowance(relief given at 10%) Either partner born before 6 April 1935 minimum amount income limit |
£9,125 £3,530 £30,400 |
£9,075 £3,510 £30,200 |
| Blind person’s allowance | £2,520 | £2,500 |
