Tax Tables 2021-22 These Tax Tables contain details of the UK's tax rates and allowances in the following areas: Saffery Champness
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Tax Tables 2021-22 These Tax Tables contain details of the UK’s tax rates and allowances in the following areas: Income tax Personal allowances Capital gains tax (CGT) National Insurance contributions (NICs) Corporation tax Inheritance tax (IHT) Remittance Basis Charge (RBC) Pension schemes Stamp taxes Individual savings accounts (ISAs) VAT Annual Tax on Enveloped Dwellings (ATED) Enterprise Investment Scheme (EIS) & Seed EIS (SEIS) Venture Capital Trusts (VCTs) Capital allowances Apprenticeship Levy Car, van and fuel benefits Tax relief for qualifying research & development (R&D) Creative industries tax relief
Income tax Capital gains tax (CGT)
Individuals 2021-22 2020-21 Individuals 2021-22 2020-21
Non-savings Annual exemption £12,300 £12,300
Savings Dividends
(excluding Band of taxable income Band of taxable income Main rates
(all UK) (all UK)**
Scotland)*
Within basic rate band 10% 10%
- 0%*** - £1 - £5,000 £1 - £5,000 Above basic rate band 20% 20%
20% 20% 7.5% £1 - £37,700 £1 - £37,500 ains on residential property and
G
40% 40% 32.5% £37,701 - £150,000 £37,501 - £150,000 carried interest
Within basic rate band 18% 18%
45% 45% 38.1% Over £150,000 Over £150,000
Above basic rate band 28% 28%
Non-savings and non-dividend income above
personal allowance (Scotland only) Trustees
Exempt amount £6,150 £6,150
19% £1 - £2,097 £1 - £2,085
Main rate 20% 20%
20% £2,098 - £12,726 £2,086 - £12,658
Gains on residential property 28% 28%
21% £12,727 - £31,092 £12,659 - £30,930
Companies
41% £31,093 - £150,000 £30,931 - £150,000
NRCGT gains 20% 20%
46% Over £150,000 Over £150,000
Other chargeable gains 19% 19%
Trustees (all UK) 2021-22 and 2020-21
Business Asset Disposal Relief BADR
Life interest Discretionary
BADR may be available in respect of gains on the qualifying disposal or cessation of at least part of a business, including a disposal
Non-savings 20% 45% of shares in trading companies where inter alia the vendor is an employee of the company and holds at least 5% of the shares and
Savings 20% 45% voting rights, and is either beneficially entitled to at least 5% of the profits available for distribution and to at least 5% of the
assets on a winding up, or would be entitled to at least 5% of the proceeds in the event of a disposal of the whole share capital of
Dividends 7.5% 38.1% the company. Different rules apply where the shares were acquired under an Enterprise Management Incentive Scheme. A CGT
Standard rate band**** n/a £1,000 flat rate of 10% applies. Assets must have been owned for at least two years. The lifetime limit for gains qualifying for BADR is
£1 million.
* Taxpayers with a main residence in Wales will pay Welsh rates of Income Tax set by the Welsh government. For the tax year Investors' Relief (IR)
2021-22 the Welsh rates are set at the same level as in England and Northern Ireland IR may be available in respect of gains made by non-employee/director shareholders on the disposal of qualifying shares. A flat
** Applies to dividend income received above the Dividend Allowance. Dividends are taxed as the top slice of income, before rate of 10% applies. Assets must have been owned for at least three years to qualify for the relief and there is a lifetime limit of
capital gains £10 million on the gains for which relief can be claimed.
*** The 0% rate applies to savings income only, and is not available where taxable non-savings income is above £5,000
**** Income in the standard rate band is taxed at 7.5% or 20% as appropriate
National Insurance contributions (NICs)
From 6 April 2021
Personal allowances Class 1
Employee Employer*
2021-22 2020-21
Weekly earnings Rate Weekly earnings Rate
Personal allowance £12,570 £12,500
£1 - £184 nil £1 - £170 nil
Income limit for personal allowance* £100,000 £100,000
£184 - £967 12% Over £170 13.8%
Dividend allowance £2,000 £2,000
Over £967 2%
Personal savings allowance** £1,000 £1,000
Other classes of National Insurance
Marriage allowance (for those born after £1,260 £1,250
Class 1A/1B 13.8%
5/4/1935)***
Class 2 £3.05 weekly where profits exceed £6,515pa
Married couple’s allowance (for those £9,125 £9,075
born before 6/4/1935)**** Class 3 £15.40
Blind person’s allowance £2,520 £2,500 Class 4 9% on profits between £9,568 and £50,270, and 2% above £50,270
Employment allowance
* Personal allowance is reduced by £1 for every £2 over income limit, and exhausted where income exceeds £125,140
** Reduced to £500 for higher rate taxpayers Certain employers qualify for a £4,000 reduction in the amount of NICs they pay.
*** Spouses/civil partners may transfer up to this amount of their personal allowance between them, provided you do not pay
income tax or your income is below your personal allowance and your partner is liable to income tax at the basic rate * Different limits may apply to under 21s and apprentices under 25
**** Reduced by £1 for every £2 of income above £30,400 (2020-21 £30,200). Minimum allowance £3,530. Relief is given at 10%
Corporation tax
2021-22 2020-21
Profits and gains 19% 19%
Restitution interest payments 45% 45%
Diverted profits 25% 25%Inheritance tax (IHT) Stamp taxes
2021-22 2020-21 Stamp Duty
Nil rate band* £325,000 £325,000 Stamp Duty is charged at 0.5% where consideration for the transfer exceeds £1,000.
Additional residence nil rate band* £175,000 £175,000
Stamp Duty Land Tax (SDLT)
Tax rate above nil rate band 40%** 40%**
SDLT is charged on a progressive basis on the transfer of UK property (excluding Scotland and Wales), and on most lease
(on death)
premiums according to the value of the consideration and the use.
Lifetime gifts
1 April 2021 to 30 June 2021
Lifetime gifts to individuals are exempt from IHT if the donor survives seven years. Tax charges on gifts within seven years of death
are as follows: Rate* Residential bands Rate** Non-residential bands
0% £0 - £500,000 0% £0 - £150,000
Years before death 0-3 3-4 4-5 5-6 6-7
% of death rates 100 80 60 40 20 5%*** £500,001 - £925,000 2% £150,001 - £250,000
10%*** £925,001 - £1,500,000 5% Over £250,000
Chargeable lifetime gifts above the available nil rate band are taxed at 20%.
12%*** Over £1,500,000
Other exemptions 1 July 2021 to 30 September 2021
Transfers to spouses/civil partners where both are UK domiciled. Certain gifts out of income. Small gifts: £250 per donee. Annual Rate* Residential bands Rate** Non-residential bands
gifts £3,000 per donor. In consideration of marriage: parent £5,000; grandparent, remoter ancestor or party to marriage £2,500;
other £1,000. 0% £0 - £250,000 0% £0 - £150,000
Individuals not domiciled in the UK 5%*** £250,001 - £925,000 2% £150,001 - £250,000
Spousal exemption is limited to £325,000 where the transfer is to a non-UK domiciled spouse who does not elect to be treated as 10%*** £925,001 - £1,500,000 5% Over £250,000
UK domiciled. 12%*** Over £1,500,000
An individual will become deemed domiciled in the UK where they have been resident for 15 of the last 20 years (eg from 1 October 2021
2006-07). Professional advice should be sought where there has been a break in UK residency or where an election to be UK Rate* Residential bands Rate** Non-residential bands
domiciled is to be made.
0% £0 - £125,000 0% £0 - £150,000
* A surviving spouse/civil partner is entitled to any unused nil rate band/additional residence nil rate band of their deceased
spouse/civil partner. There is a tapered reduction in the RNRB for estates with a value in excess of £2 million, of £1 for every £2 2% £125,001 - £250,000 2% £150,001 - £250,000
over the £2 million limit 5%*** £250,001 - £925,000 5% Over £250,000
** 36% where 10% or more of the deceased’s net estate is left to charity
10%*** £925,001 - £1,500,000
12%*** Over £1,500,000
Scotland – Land and Buildings Transaction Tax (LBTT)
Remittance Basis Charge (RBC) LBTT has replaced SDLT for properties in Scotland. It is charged on the transfer of Scottish property and on most lease premiums
and, like SDLT, applies on a progressive basis. Rates and thresholds differ from SDLT, and specialist advice should be sought when
An individual who is not domiciled in the UK may be eligible to make a claim to be taxed on the remittance basis in the UK for a tax buying a property in Scotland.
year. Those who have been resident in the UK for more than seven years may need to pay an RBC if a claim is made, as follows:
Wales – Land Transaction Tax (LTT)
For the year ended 5 April 2022
LTT has replaced SDLT for properties in Wales. It is charged on the transfer of Welsh property and on most lease premiums and,
Need to pay RBC if became (and remained) resident like SDLT, applies on a progressive basis. Rates and thresholds differ from SDLT, and specialist advice should be sought when
Amount
in the year ended: buying a property in Wales.
5/4/2015 £30,000
* From 1 July 2021, no SDLT is payable on the first £300,000 of certain purchases of up to £500,000 by first time buyers
5/4/2010 £60,000 buying their main residence. SDLT is payable at 5% on the remainder up to £500,000. If the purchase price is more than
Individuals who have been UK resident for at least 15 of the previous 20 tax years, or who are UK resident and were born in the £500,000, relief cannot be claimed and the standard rates apply on the total purchase price.
UK with a UK domicile of origin, will be deemed domiciled for Income Tax, CGT and IHT purposes. Such individuals cannot claim An additional 3% supplement applies to all rates where an additional property is purchased which does not replace a main
the remittance basis. residence, and for which consideration exceeds £40,000.
With effect from 1 April 2021, non-residents purchasing UK residential property in England and Northern Ireland are subject
to an additional 2% surcharge. If they are also subject to the additional property surcharge this will result in a 5% charge on the
value of the nil-rate band
** Lower rates apply to leasehold interests in non-residential property. Non-residential properties purchased in a designated
Pension schemes freeport are eligible for a 100% SDLT relief
*** 15% where residential property is purchased by certain non-natural persons and consideration exceeds £500,000. Relief may
From 6 April 2021
be claimed in limited circumstances
Stakeholder limit* £3,600
Annual allowance** £40,000
Lifetime allowance*** £1,073,100 Individual savings accounts (ISAs)
* Contributions up to this level benefit from tax relief regardless of income 2021-22 2020-21
** Reduced by £1 for every £2 of adjusted income over £240,000 (2020-21 - £240,000). A minimum annual allowance of £4,000 ISA subscription limit £20,000 £20,000
(2020-21 - £4,000) applies. An allowance of £4,000 applies if certain pension drawings have been made. It may be possible to
carry forward unused allowances from previous years Junior ISA/Child Trust Fund subscription limit £9,000 £9,000
*** The maximum amount of pension savings that can benefit from tax relief during an individual’s lifetime (subject to pension Within these overall limits, individuals can contribute to Help to Buy or Lifetime ISAs, which provide a government bonus for
protections) savings used for particular purposes. Conditions apply.VAT Capital allowances
Standard rate – 20% 2021-22 2020-21
Reduced rate (applying to specific categories of goods) – 5%
15 July 2020 to 30 September 2021 From 1 October 2021 to 31 March 2022 Annual Investment Allowance* £1,000,000/£200,000 £1,000,000
Reduced rate on hospitality, holiday 5% 12.5%
accommodation and attractions
Structures and Buildings Allowance ** 3% 3%
Turnover thresholds From 1 April 2021 From 1 April 2020
Registration £85,000 £85,000 Plant and machinery***
De-registration £83,000 £83,000 Main rate pool 18% 18%
Cash accounting £1,350,000 £1,350,000 Super deduction**** 130% 0%
Annual accounting £1,350,000 £1,350,000 Special rate first year allowances**** 50% 0%
Flat rate scheme £150,000 £150,000
Short life assets 18% 18%
Special rate pool 6% 6%
100% initial allowances are available for assets purchased for use in a designated freeport, certain low CO2 emission cars, and
Annual Tax on Enveloped Dwellings (ATED) research and development. Loss-making companies may be able to surrender losses for a PAYE tax credit. Conditions apply.
Annual tax payable by companies or collective investment vehicles (and partnerships where a partner is a company) on high value * The increased limit of £1,000,000 applies to investments made from 1 January 2019 to 1 January 2022
residential property. Reliefs may be claimed in certain circumstances. ** Structures and Buildings Allowance is available on new qualifying non-residential structures and buildings on a straight-
line basis. An enhanced SBA of 10% is available for expenditure on non-residential structures and buildings in a designated
Property value* 2021-22 2020-21
freeport
£500,001 to £1,000,000 £3,700 £3,700 *** On reducing balance
£1,000,001 to £2,000,000 £7,500 £7,500 **** These allowances are only available for entities within the charge to corporation tax
£2,000,001 to £5,000,000 £25,300 £25,200
£5,000,001 to £10,000,000 £59,100 £58,850 Apprenticeship Levy
£10,000,001 to £20,000,000 £118,600 £118,050 2021-22 and 2020-21
Over £20,000,000 £237,400 £236,250 Levy rate (on total pay bill) 0.5%
* As at 1 April 2017, or at acquisition if later Annual allowance £15,000
Levy-paying employers may transfer up to 25% of their annual Apprenticeship Levy funds to other employers.
Enterprise Investment Scheme (EIS) & Seed EIS (SEIS)
Car, van and fuel benefits
From 6 April 2021
Benefits in kind for company cars and fuel vary depending on their CO 2 emissions. Flat-rate charges apply in respect of vans.
Cash subscriptions for newly issued ordinary shares of unquoted (including AIM) trading companies satisfying certain conditions. HMRC also provide advisory fuel rates for employees using their own vehicle, or one provided by their employer. These are
Investors must also satisfy certain conditions. regularly updated, and can be found on the Gov.uk website.
Income tax relief – individuals only
EIS SEIS
Tax relief for qualifying research & development (R&D)
Maximum investment – general £1,000,000* £100,000
2021-22 and 2020-21
Income tax relief 30% 50%
EIS and SEIS shares which attract income tax relief will be exempt from CGT on disposal (conditions apply). There is a facility to Small and medium-sized enterprises may be eligible for 230% tax relief on qualifying R&D expenditure. Loss-making companies may
carry-back 100% of the investment for one year (subject to usual limits). be entitled to a tax credit, subject to detailed conditions. Large companies do not qualify for this relief, but may instead be eligible
for the Research & Development Expenditure Credit at 13%.
EIS deferral relief – individuals and certain trusts
No minimum or maximum subscription. CGT deferral on gains realised one year before and three years after subscription.
Creative industries tax relief
SEIS CGT reinvestment relief
Enhanced corporation tax deductions are available to support companies operating in certain creative industries. Reliefs currently
50% exemption from CGT for gains made in the tax year which are reinvested in an SEIS company, subject to certain time limits. available are:
* £2 million if the excess over £1 million is invested in knowledge-intensive companies • Film Tax Relief
• Animation Tax Relief
• High End Television Tax Relief
Venture Capital Trusts (VCTs) • Video Games Tax Relief
• Children’s Television Tax Relief
2021-22 and 2020-21 • Theatre Tax Relief
• Orchestra Tax Relief
• Museums and Galleries Tax Relief
Investments into VCTs attract income tax relief at 30% on up to £200,000 per year, and dividends and capital gains in respect of
the VCT shares are tax free. The shares must be held for five years or more to retain income tax relief. Detailed conditions apply.
Detailed conditions apply. In certain circumstances relief may be available in the form of a payable tax credit.Contact us
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Saffery Champness’ Tax Tables is published on a general basis for information only. It does not constitute, and should not be construed as, investment advice nor a recommendation to subscribe to, purchase,
sell or otherwise transact in any security or financial instrument. No liability is accepted for errors of fact or opinion it may contain. Professional advice should always be obtained before applying the
information to particular circumstances. Views expressed by external parties in this document are their own, and do not necessarily reflect those of Saffery Champness LLP. J8918.
© Saffery Champness LLP April 2021.
Saffery Champness LLP is a limited liability partnership registered in England and Wales under number OC415438 with its registered office at 71 Queen Victoria Street, London EC4V 4BE. The term “partner”
is used to refer to a member of Saffery Champness LLP. Saffery Champness LLP is regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
Saffery Champness LLP is a member of Nexia International, a leading, global network of independent accounting and consulting firms that are members of Nexia International Limited. Nexia International
Limited, a company registered in the Isle of Man, does not provide services to clients. Please see the “Member firm disclaimer” for further details.You can also read
