Tax rates and allowances
With changes in the tax system now an ever-present feature, our up-to-date experience is available to ensure clients'' tax liabilities are planned to be at a minimum.
The main changes announced for 2020/21 are:
- personal allowance remains the same at £12,500
- basic-rate band is £37,500
- higher-rate threshold remains the same at £50,000
- car fuel benefit multiplier increases to £24,500
- a reduction to 0% benefit in kind for fully electric company car
- van benefit is £3,490
- van fuel benefit is £666
- the lifetime limit for entrepreneurs' relief was reduced from £10m to £1m, for disposals on or after 11 March 2020
- capital gains tax annual allowance increases to £12,300
- residence nil-rate band is £175,000
- national living wage increases from £8.21 per hour to £8.72
- junior ISA allowance and child trust fund limits increase to £9,000
- the adjusted net income limit for the tapering of the annual allowance for pensions increased from £150,000 to £240,000
- the tapered minimum annual allowance for pensions decreased from £10,000 to £4,000
- lifetime pension allowance increases from £1,055,000 to £1,073,100
As a consequence of devolution, several rates may differ between the four countries that make up the UK. Where applicable these rates are shown in each section of these tax rates and allowances.
Resources
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- Spring Budget 2021
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