Tax Data Card 2021-22

A summary of key tax rates and allowances for 2021-22 and 2020-21.

Income Tax

Income Tax

Personal allowances	2021-22	2020-21
Personal allowance (PA)	£12,570	£12,500
PA restricted by £1 for every £2 of income over	£100,000	£100,000
Transferable tax allowance for certain married couples	£1,260	£1,250
Blind person's allowance	£2,520	£2,500
Married couples' allowance (at least one born pre 6 Apr 1935): Maximum (relief given at 10%) Minimum (relief given at 10%)	£9,125 £3,530	£9,075 £3,510

Other allowances	2021-22	2020-21
Personal savings allowance: Basic rate Higher rate Top rate	£1,000 £500 £0	£1,000 £500 £0
Maximum savings starting rate (non-savings income < PA) Reduces by £1 for every £1 of non-savings income > PA	£5,000	£5,000
Dividends allowance	£2,000	£2,000
Rent-a-room allowance	£7,500	£7,500
Trading allowance	£1,000	£1,000
Property allowance	£1,000	£1,000

Income tax bands and rates	2021-22	2020-21
Basic rate band: Savings Non-savings Dividends Gift aid and pension contributions can extend basic rate band	£37,700 20% 20% 7.5%	£37,500 20% 20% 7.5%
Higher rate band: Savings Non-savings Dividends	£37,701-£150,000 40% 40% 32.5%	£37,501-£150,000 40% 40% 32.5%
Higher rate band: Savings Non-savings Dividends	£150,000+ 45% 45% 38.1%	£150,000+ 45% 45% 38.1%
Rates applicable to trusts: Savings Non-savings Dividends	45% 45% 38.1%	45% 45% 38.1%

Non-domicile remittance basis charge (RBC)	2021-22	2020-21
De minimis unremitted foreign income and gains	£2,000	£2,000
UK resident 7 of last 9 tax years RBC	£30,000	£30,000
UK resident 12 of last 14 tax years RBC	£60,000	£60,000
UK resident 17 of last 20 tax years RBC	N/A	N/A
UK resident 15 of last 20 tax years RBC	Deemed domiciled	Deemed domiciled

Child benefit	2021-22	2020-21
One child (per week)	£21.15	£21.05
Additional children (per week)	£14.00	£13.95
Reduced by 1% for every £100 of income over	£50,000	£50,000
Child benefit fully repayable if income over	£60,000	£60,000

Savings & investments

CGT

IHT

VAT

Stamp Duties & ATED

Corporation Tax & Capital Allowances

National Insurance

Squirrel ad

Are you enjoying our content?

Thousands of accountants and advisers & their clients use rossmartin.co.uk as their primary TAX resource.

Register now to receive our FREE weekly SME Tax News update, discounts and briefings

ISA	2021-22	2020-21
ISA annual limit (cash and shares combined)	£20,000	£20,000
Lifetime ISA annual limit	£4,000	£4,000
Lifetime ISA withdrawal charge	20%	20%
Help to buy ISA limit per month, initial month extra £1,000	£200	£200
Junior ISA annual limit	£9,000	£9,000

Venture capital	2021-22	2020-21
Maximum individual investment: Enterprise Investment Scheme (EIS) EIS, where amounts over £1m invested in 'knowledge-intensive companies Seed EIS (SEIS) Venture Capital Trust (VCT) Social Investment Tax Relief (SITR)	£1,000,000 £2,000,000 £100,000 £200,000 £1,000,000	£1,000,000 £2,000,000 £100,000 £200,000 £1,000,000
Maximum income tax reduction: EIS SEIS VCT SITR test	30% 50% 30% 30%	30% 50% 30% 30%

Pensions	2021-22	2020-21
Lifetime allowance Excess taxed at: 55% for cash drawn 25% for income drawn	£1,073,100	£1,073,100
Annual allowance maximum	£40,000	£40,000
Annual allowance minimum	£4,000	£4,000
Maximum tax-relieved contributions with no relevant earnings	£3,600	£3,600
Money purchase annual allowance	£4,000	£4,000

Exemptions	2021-22	2020-21
Annual exemption for individuals	£12,300	£12,300
Annual exemption for trusts generally	£6,150	£6,150
Chattels max gain 5/3rds x proceeds less exempt amount of...	£6,000	£6,000

Rates	2021-22	2020-21
Individuals: Basic rate Above basic rate Additional surcharge applicable to residential property gains	10% 20% 8%	10% 20% 8%
Trusts Additional surcharge applicable to residential property gains	20% 8%	20% 8%
Companies	See corporation tax

Reliefs	2021-22	2020-21
Business Asset Disposal Relief - qualifying lifetime limit	£1,000,000	£1,000,000 (from 11/3/2020)
Investors' Relief - qualifying lifetime limit	£10,000,000	£10,000,000
Both reliefs result in CGT at 10% on qualifying gains

Exemptions and nil rates	2021-22	2020-21
Nil rate band	£325,000	£325,000
Residence nil rate band	£175,000	£175,000
Maximum at nil rate including nil rate band transfers from spouse	£1,000,000	£1,000,000

Rates	2021-22	2020-21
Chargeable lifetime transfers	20%	20%
Transfers on, or within seven years of, death (excess over nil rate band)	40%	40%
Transfers on death, where 10% or more left to charity	36%	36%
Taper relief on IHT payable for gifts made within seven years of death	0 - <3 years 3 - <4 years 4 - <5 years 5 - <6years 6 - <7 years More than 7 years	0% 20% 40% 60% 80% Exempt

Exemptions	2021-22	2020-21
Gifts to UK domiciled spouse (or non-dom with domicile election)	Unlimited	Unlimited
Gifts to non-domiciled spouse (additional to nil rate band)	£325,000	£325,000
Annual exemption (per donor): can be carried forward one year	£3,000	£3,000
Small gifts exemption (per donee)	£250	£250
Wedding gift from parent	£5,000	£5,000
Wedding gift from grandparent	£2,500	£2,500
Wedding gift from others	£1,000	£1,000
Regular gifts out of income	Unlimited	Unlimited
Business property relief: Controlling interest in listed company Personal assets used by partnership or company you control Interest in a trading business Shares in an unquoted trading company (including AIM-listed)	50% relief 50% relief 100% relief 100% relief	50% relief 50% relief 100% relief 100% relief
Agricultural property relief (applicable to agricultural value)	100% relief	100% relief

VAT	2021-22	2020-21
Registration threshold (taxable turnover, i.e. excl. exempt)	£85,000	£85,000
Deregistration threshold	£83,000	£83,000
Rates: Standard Reduced Zero	20% 5% 0%	20% 5% 0%
Fractions: Standard Reduced	1 / 6 1 / 21	1 / 6 1 / 21
Cash accounting & annual accounting: Taxable turnover upper limit for joining Taxable turnover upper limit for leaving	£1,350,000 £1,600,000	£1,350,000 £1,600,000
Flat rate scheme: Taxable turnover upper limit for joining Anniversary test: leave if total income (incl. exempt) greater than stay if total income in next 12 months will be less than	£150,000 £230,000 £191,500	£150,000 £230,000 £191,500
Flat rate scheme limited cost trader (LCT): LCT applies if spend on relevant goods in the quarter is: Less than total income (incl. exempt) x OR, less than LCT rate (reduce by 1% first 12 months of registration)	2% £250 16.5%	2% £250 16.5%
Partial exemption de-minimis: Recover VAT if input VAT attributable to exempt supplies is: on average less than and, as a proportion of total input VAT is no more than	£625 per month 50%	£625 per month 50%

Stamp Duty	2021-22	2020-21
Newly issued shares	0%	0%
Stocks and marketable securities with consideration over £1,000	0.5%	0.5%

Stamp Duty Land Tax - residential property	2021-22	2020-21
First time buyers where cost of property < £500,000: £0 - £300,000 £300,000 - £500,000 If the cost is more than £500,000 then the normal rates apply.	0% 5%	0% 5%
£0 - £125,000	0%	0%
£125,001 - £250,000	2%	2%
£250,001 - £925,000	5%	5%
£925,001 - £1,500,000	10%	10%
£1,500,001 +	12%	12%
Note: owing to Coronavirus, the nil rate of SDLT is extended to £500,000 from 8 July 2020 to 30 June 2021. The nil rate will then fall to £250,000 until 30 September 2021 before returning to £125,000 as above.
Supplement for second home/buy to let and companies Not applicable if consideration less than	3% £40,000	3% £40,000
Higher rate for non-natural person with non-qualifying activity (applies to companies, partnerships with a company partner and collective investment schemes)	15% if >£500,000	15% if >£500,000
Surcharge for non-UK residents	2%	N/A

Stamp Duty Land Tax - non-residential or mixed property	2021-22	2020-21
£0 - £150,000	0%	0%
£150,001 - £250,000	2%	2%
£250,001 +	5%	5%

Annual Tax on Enveloped Dwellings	2021-22	2020-21
Applies if market value on valuation date exceeds	£500,000	£500,000
Valuation dates	1 April 2017	1 April 2017
Annual charge if taxable value is £500,001 - £1,000,000	£3,700	£3,700
£1,000,001 - £2,000,000	£7,500	£7,500
£2,000,001 - £5,000,000	£25,300	£25,200
£5,000,001 - £10,000,000	£59,100	£58,850
£10,000,001 - £20,000,000	£118,600	£118,050
£20,000,001 +	£237,400	£236,250

Corporation Tax	2021-22	2020-21
Rate	19%	19%
S455 tax on loans to participators	32.5%	32.5%

Patent box and R&D	2021-22	2020-21
Patent box effective rate	10%	10%
Research and development (R&D) capital expenditure relief	100%	100%
R&D total enhanced deduction for SMEs	230%	230%
R&D tax credit rate on surrendable loss for SMEs	14.5%	14.5%
R&D large company above the line credit	13%	13%

Capital allowances	2021-22	2020-21
Annual Investment Allowance (100%) up to	£1,000,000 to 31 December 2021, then £200,000	£1,000,000
Super deduction (expenditure between 1 April 2021 and 31 March 2023)	130%	N/A
Super deduction (special rate assets)	50%	N/A
Plant and machinery general pool writing down allowance (WDA)	18%	18%
Integral features and certain long-life assets WDA	6%	6%
Small pool WDA where balance <£1,000	100%	100%
FYA for electric charge-points	100%	100%
Structures and buildings allowance (SBA)	3%	3%

Capital allowance - cars	2021-22	2020-21
New and unused with CO2 emissions of 0g/km	100%	100%
New and unused with CO2 emissions of up to 50g/km	18%	100%
New and second hand up to 110g/km	6%	18%
New and second hand above 110g/km	6%	6%
Include cars used by sole traders or partnerships with private use in a single asset pool

	2021-22		2020-21
	Employee	Employer	Employee	Employer
Main NIC rate	12%	13.8%	12%	13.8%
No NIC on first	£184 pw	£170 pw	£183 pw	£169 pw
Main rate charged up to	£967 pw	No limit	£962 pw	No limit
2% on earnings above	£967 pw	N/A	£962	N/A
Employment allowance per business*	N/A	£4,000	N/A	£4,000

	2021-22	2020-21
Class 2 (Self employed)
Flat rate per week	£3.05	£3.05
Small profits threshold	£6,515	£6,475
Class 3 (Voluntary)
Flat rate per week	£15.40	£15.30
Class 4 (Self employed)
On profits £9,568 to £50,270	9.0%	9.0%
On profits over £50,270	2.0%	2.0%

Popular