Tax Rates And Related Information

Corporation Tax

Financial year to 31 March 2022 31 March 2021
Tax Rate 19% 19%

Capital allowances

 2022/21 (£) 2021/20 (£)
Plant and machinery
– annual investment allowance £1m £1m
– main rate pool *18% *18%
– long life assets *6% *6%
– integral features *6% *6%
Cars – CO2 emissions 0g/km (zero emission) 100% 100%
Cars – CO2 emissions 1 – 50g/km (ULEV) *18% 100%
Cars – CO2 emissions 51 – 110g/km *6% *18%
Cars – CO2 emissions over 110g/km *6% *6%
Energy saving & environmentally beneficial assets 100% 100%

* Reducing balance.

Value added tax

Standard rate 20%
VAT fraction (where included cost) 1/6
Registration threshold £85,000
De-registration threshold £83,000
Optional flat-rate scheme for small businesses is available.

Research and development tax credits

Rates for reduction 2021/22 2020/21
SME rate 230% 230%
Large company (above line credit) 13% 13%
Rates for surrender of losses 2021/22 2020/21
SME rate 14.5% 14.5%
Large company (taxable) 13% 13%

Patent Box

 2022/21 2020/21
Effective tax rates on patent box profits 10% 10%

ISA limits

 2021/22 2020/21
Overall limits 20,000 20,000
Junior ISA limits 9,000 9,000
Lifetime ISA limits 4,000 4,000

Stamp duty land tax – England , Wales and Northern Ireland

Total consideration £ Residential Rates* – 1 July to 30 September 2021 Residential Rates* – from 1 October 2021 Non Residential Rates
1 – 125,000 NIL NIL NIL
125,001 – 150,000 NIL 2% NIL
150,001 – 250,000 NIL 2% 2%
250,001 – 925,000 5% 5% 5%
925,001 – 1,500,000 10% 10% 5%
over 1,500,000 12% 12% 5%
over 500,000 **15% **15% N/A

* Additional 3% rate applies to second and subsequent properties costing over £40,000.

** For purchases by companies and other certain non-natural persons, subject to certain exclusions.

Non-residents pay an additional 2% surcharge if buying a residential property in England or Northern Ireland on or after 1 April 2021.

First-time buyers do not pay SDLT on the first £300,000 of property purchases and 5% on the portion £300,001 – £500,000.

Land and buildings transaction tax – Scotland

Total consideration £ Additional dwelling supplement* Residential Rates** Non Residential Rates
1 – 145,000 4% NIL NIL
145,001 – 150,000 6% 2% NIL
150,001 – 250,000 6% 2% 1%
250,001 – 325,000 9% 5% 5%
325,001 – 350,000 14% 10% 5%
350,001 – 750,000 14% 10% 5%
over 750,000 16% 12% 5%

* Additional rates of +4% apply to second and subsequent dwelling costing over £40,000.

** Relief for first-time buyers is available, which increases the residential nil rate band of LBTT to £175,000.

Land transaction tax – Wales

Total consideration   – £ Residential Rates Residential Higher Rates* Non Residential Rates
1-150,000 0% 4% 0%
150,001 – 180,000 0% 4% 0%
180,001 – 225,000 3.5% 7.5% 0%
225,001 – 250,000 3.5% 7.5% 1%
250,001 – 400,000 5% 9% 5%
400,001 -750,000 7.5% 11.5% 5%
750,001 – 1,000,000 10% 14% 5%
1,000,000 – 1,500,000 10% 14% 6%
Over 1,5000,000 12% 16% 6%
* Additional rates apply to second and subsequent properties costing over £40,000

 

Income tax rates – England, Wales and Northern Ireland

Rate % Taxable income 2021/22 (£) Taxable income 2020/21 (£)
10* Up to 5,000 Up to 5,000
20** †Up to 37,700 †Up to 37,500
40*** †37,701 – 150,000 †37,501 – 150,000
45**** Over 150,000 Over 150,000

* Starting rate applies to savings income only and is only available if total of other income is no more than £17,570

** 7.5% for dividend income

*** 32.5% for dividend income

**** 38.1% for dividend income

Rate of income tax for discretionary trusts: 38.1% for dividend income, 45% for non-dividend income.

Income tax rates – Scotland (apply to non-savings and non-dividend income only)

Band Taxable income Scottish tax rate
Personal Allowance Up to £12,570 0%
Starter rate £12,571 to £14,667 19%
Basic rate £14,668 to £25,296 20%
Intermediate rate £25,297 to £43,662 21%
Higher rate £43,663 to £150,000 40%
Top rate over £150,000 46%

Income tax allowances

Allowance 2021/22 £ 2020/21 £
Personal allowance*
Individuals 12,570 12,500
Marriage allowance 1,250 1,190
Married couples allowance**
Allowance 9,125 9,075
Minimum amount 3,530 3,510
Blind person’s allowance 2,520 2,500
Dividend allowance 2,000 2,000
Personal savings allowance basic rate payer 1,000 1,000
Personal savings allowance higher rate payer 500 500
Small profits/rental income disregard up to 1,000 1,000
‘Rent-a-room’ 7,500 7,500

* Personal allowance is reduced by £1 for every £2 exceeding £100,000 of income. This is irrespective of age of date of birth.**

**Either partner 75 or over or born before 6 April 1935. Relief is restricted to a 10% tax credit.

Inheritance tax

Transfers on or after 6 April 2018 (husband and wife treated separately)

Band £ Lifetime rate £ Death rate £
0 – 325,000* NIL NIL
Over 325,000 20% **40%

* A further nil rate band of £175,000(£175,000 for 2020/21) may be available in relation to current or former residences. Nil rate bands of surviving spouses/civil partners may be increased by unused nil rate bands of deceased spouses/civil partners.

**Where ‘adjusted net income’ is above the income limit the age-related allowance is reduced by £1 for every £2 of excess income, until it is reduced to the basic level (but also see * and “Income tax allowances” above).

** A reduced rate of 36% applies where a deceased individual has left 10% or more of their net estate to charity.

Inheritance tax reliefs

£
Annual exemption 3,000
Small gifts exemption 250
Wedding gifts exemption
Gifts made by
– parent 5,000
– more remote ancestor 2,500
– bride/groom 2,500
– other person 1,000

Inheritance tax tapering relief

Rates for transfers on death also apply to gifts within seven years of death subject to tapering relief.

Years between gift and death Reduction in charge
0 – 3 NIL
3 – 4 20%
4 – 5 40%
5 – 6 60%
6 – 7 80%

National insurance contributions

Employees’ class 1 contributions on 2021/22

Total weekly earnings £ Rate
Below 184* NIL
185 – 967 12%
Over 967 2%
Married women’s reduced rate 5.85% on earnings between £184 and £967 per week plus 2% on earnings above £967 per week

*Between £120 per week and £184 per week a zero rate applies to protect employees’ contributory benefit entitlement.
Employers’ class 1 contributions for 2021/22
Total weekly earnings £ Rate
Below 184 NIL
Above 184** 13.8%

**A rate of 0% is applied to Employees under 21 and Apprentices under 25 on earnings up to £892 per week.
Annual employment allowance for qualifying employers £3,000
Class 2 – self employed Flat rate £3.05 per week if earning exceed £6,515 per annum
Class 3 – voluntary Flat rate £15.40 per week
Class 4 – self employed 9% of profits between £9,568 and £50,270 per annum plus 2% on the excess

Car And Fuel Benefits

Cars
Minimum 16% of list price (emissions 1-50g/km CO2 (lower rates where emissions below this level)
Increments 1% for each additional 5g/km CO2 emissions over 95g/km CO2
Diesel cars 4% surcharge
Electric cars 13% of list price
Maximum 37%
Emissions levels for most cars can be found on www.vca.gov.uk CO2 level rounded down to nearest 5g.
Fuel
Private fuel provided with company car – percentages as above for cars x £24,600
Approved mileage rates for business mileage in own car
Cars and vans Per Mile
1 – 10,000 miles 45p
Over 10,000 miles 25p
Advisory mileage rates for business mileage in company car from 1 June 2018 (Pending 2021 update from the government)
Petrol/LPG Diesel
Petrol LPG
1400cc or less 11p 7p 1600cc or less 10p
1401 – 2000cc 14p 9p 1601cc – 2000cc 11p
2001cc or more 22p 14p 2001cc or more 13p
Petrol hybrid cars are treated as petrol cars for purpose.

Capital Gains Tax

 2021/22 £ 2020/21 £
Tax rates Individuals – basic rate 10%/18%* 10%/18%*
Individuals – higher/additional rate 20%/28%* 20%/28%*
Trusts and personal representatives 20%/28%* 20%/28%*
Companies see CT rates see CT rates
Annual exemptions
Individuals £12,300 £12,300
Trusts (maximum) £6,150 £6,150
Chattels proceeds exemption £6,000 £6,000
Capital gains tax entrepreneurs’ relief:
Lifetime limit £1,000,000 £1,000,000
Rate 10% 10%
*There is an 8% additional tax charge on the capital gains of a residential property.

High income child benefit charge

2021/22 Weekly £ Annual £
Benefit receivable for eldest/Only child 21.05 1,094.60
Benefit receivable for other children 14.00 728.00

For taxpayers with income between £50,000 and £60,000 a charge of 1% for every £100 of income over £50,000 and 100% where income exceeds £60,000 for each week they, or their partner, are in receipt of child benefit.