Income Tax & Personal Savings

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

 

 

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

 

 

Income Tax & Personal Savings

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