Registered office address: Rosemount House, Rosemount Avenue, West Byfleet, KT14 6LB

Company no:  09839023 

Vat no: 225408623

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Rates and Allowances 2020/21

INCOME TAX

Rates and bands (other than savings and dividend income)

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.

INCOME TAX RELIEFS

INDIVIDUAL SAVINGS ACCOUNTS

PENSIONS

However for those on higher incomes, the annual allowance is reduced accordingly, The minimum level to which the annual allowance can taper down will reduce from £10,000 to £4,000 from 6 April 2020

DEVOLVED INCOME TAX

Scotland rates and bands 

Wales rates and bands 

NATIONAL INSURANCE

2020/21 Class 1 (employed) rates

Entitlement to contribution-based benefits for employees retained for earnings between £120 and £183 per week.

The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 per week

Class 1A (employers)

13.8% on employee taxable benefits

Class 1B (employers)

13.8% on PAYE Settlement Agreements

Class 2 (self-employed)

flat rate per week £3.05

small profits threshold £6,475 per annum

Class 3 (voluntary)

flat rate per week £15.30

Class 4 (self-employed)

9% on profits between £9,500 and £50,000 plus 2% on profits over £50,000

INHERITANCE TAX

A further nil rate band of £175,000 (£150,000 for 2019/20) may be available in relation to current or former residences.

CAR, VAN AND FUEL BENEFITS

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions over 75g/km if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.

CAPITAL ALLOWANCES

First Year Allowance (FYA)

100%

on certain plant, machinery and cars up to 50g/km

Annual Investment Allowance (AIA)

Excludes cars and expenditure already qualifying for FYA

£1,000,000 (£200,000 from 1 January 2021)

Writing Down Allowance

Expenditure not qualifying for AIA or FYA:

Long-life assets, integral features of buildings, cars over 110g/km

Other plant and machinery

6%

18%

Structures and Buildings Allowance

From April 2020

3%

CORPORATION TAX

VAT

CAPITAL GAINS TAX

Higher rates (18/28%) may apply to the disposal of certain residential property and carried interest

Entrepreneurs’ Relief

The first £10m of lifetime qualifying gains were  charged at 10%. This was reduced to £1m for disposals on or after 11 March 2020 subject to certain transitional rules

PROPERTY TAXES

Across the whole of the UK, residential rates may be increased by 3% (4% in Scotland) where further residential properties are acquired.

Stamp Duty Land Tax

Land and buildings in England and N. Ireland

First-Time Buyer relief may apply to residential purchases up to £500,000.

Land and Buildings Transaction Tax

Land and buildings in Scotland

First-Time Buyer relief may apply on the first £175,000 of residential purchases.

Land Transaction Tax

Land and buildings in Wales

First-Time Buyer relief may apply to residential purchases up to £500,000.

For more information, speak to one of our team


This summary is published for the information of clients. It provides only an overview of the main points, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this summary can be accepted by the authors or the firm.