Tax Tables for the 2020/21 and 2021/22 tax years
We are delighted to attach our Tax Tables for the 2020/21 and 2021/22 tax years, updated for announcements made in the Budget on 3 March 2021.
Despite the many rumours beforehand, the Chancellor still managed to produce some surprises on Budget Day. He chose to spend big initially, with major investment incentives for companies in the next two years. However, the widely anticipated corporation tax rise then kicks in with a vengeance – a one-off jump from 19% to 25%. Individual taxpayers did not escape paying their share either, with Mr Sunak reaching for the old stealth tax favourite of freezing bands, thresholds and allowances.
Key changes for the forthcoming 2021/22 tax year include:
- The personal allowance will rise to £12,570 and the higher rate threshold will be £50,270 for 2021/22
- In Scotland, the higher rate threshold for non-savings, non-dividend income will rise to £43,662 in 2021/22 as announced in the Scottish Budget.
- The NICs upper earnings limit and upper profits limit will remain aligned to the higher rate threshold at £50,270 for 2021/22
- The exemption from stamp duty land tax on the first £500,000 of residential property value will be extended to 30 June 2021 and then replaced by a £250,000 exemption until 30 September 2021.
- The capital gains tax annual exemption, inheritance tax rate nil rate bands and pensions lifetime allowance have been frozen.
- The ISA annual subscription limit for 2021/22 will remain at £20,000 and the corresponding limit for junior ISAs (JISAs) and child trust funds (CTFs) will stay at £9,000.
- For the two years from April 2021, companies investing in qualifying new plant and machinery will benefit from a 130% first-year super-deduction.
If you have any questions about the contents of your Tax Tables or how any aspects of your tax and financial planning may be affected by the Budget, please call us to discuss them.
