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Article ID: 2435
Last updated: 25 Jun, 2020
Please select from below:
Back to top
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Income tax
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Income Tax Allowances
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Personal Allowance (1)
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£12,500
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£12,500
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£11,850
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£11,500
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£11,000
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Personal Savings Allowance Basic Rate Taxpayers
Personal Savings Allowance Higher Rate Taxpayers
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£1,000
£500
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£1,000
£500
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£1,000
£500
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£1,000
£500
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£1,000
£500
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Income Limit for Personal Allowance(2)
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£100,000
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£100,000
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£100,000
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£100,000
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£100,000
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Income limit for age-related allowances (Married Couples Allowance from 2016/17) (3)
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£29,600
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£29,600
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£28,900
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£28,000
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£27,700
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Blind Person’s allowance
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£2,500
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£2,450
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£2,390
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£2,320
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£2,290
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Maximum amount of Married Couple’s allowance (2) (4)
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£9,075
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£8,915
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£8,695
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£8445
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£8,355
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Transferable Tax Allowance for married couples and civil partners (5)
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£1,250
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£1,250
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£1,190
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£1,150
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£1,100
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Dividend allowance (6)
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£2,000
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£2,000
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£2,000
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£5,000
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£5,000
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Rent a room limit
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£7,500
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£7,500
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£7,500
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£7.500
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£7,500
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- From 2017/18 onwards, all individuals will be entitled to the same personal allowance, regardless of the individuals' date of birth.
- The personal allowance is reduced by £1 for every £2 of income in excess of the £100,000 limit irrespective of date of birth.
- Married couples allowance reduces by £1 for every £2 of income in excess of the income limit, reducing to the minimum allowance (£3,510 2020/21). It can be reduced further under (2).
- The relief is limited to 10% and can only be claimed if at least one spouse was born before 6 April 1935. The allowance is reduced where income exceeds the age related income limit down to a minimum of £3,510 2020/2021.The allowance extends to Civil Partnerships.
- Available to those born after 5 April 1935. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/civil partner. The recipient must not be liable to tax above the basic rate.
- From April 2016, the Dividend Allowance means that individuals will not have to pay tax on the first £2,000 (2020/21) of dividend income they receive.
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Tax bands and corresponding tax rates
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Starting Rate for savings income
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0%
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0%
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0%
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0%
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0%
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Starter Rate
In Scotland
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19%
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19%
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19%
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N/A
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N/A
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Basic Rate in
England & Northern Ireland
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20%
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20%
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20%
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20%
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20%
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Basic Rate in
Scotland
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20%
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20%
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20%
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20%
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20%
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Basic Rate
In Wales
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20%
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20%
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20%
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20%
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20%
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Intermediate Rate in Scotland
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21%
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21%
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21%
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N/A
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N/A
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Higher Rate in England
& Northern Ireland
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40%
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40%
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40%
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40%
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40%
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Higher Rate in Scotland
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41%
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41%
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41%
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N/A
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N/A
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Higher Rate in Wales
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40%
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40%
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40%
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40%
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40%
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Additional Rate in England
& Northern Ireland
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45%
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45%
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45%
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45%
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45%
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Top Rate in Scotland
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46%
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46%
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46%
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45%
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45%
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Top Rate in Wales
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45%
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45%
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45%
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45%
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45%
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Dividend Basic Rate
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7.5%
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7.5%
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7.5%
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7.5%
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7.5%
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Dividend Higher Rate
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32.5%
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32.5%
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32.5%
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32.5%
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32.5%
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Dividend Additional Rate
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38.1%
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38.1%
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38.1%
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38.1%
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38.1%
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Starting Rate Limit
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£5,000
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£5,000
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£5,000
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£5,000
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£5,000
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Basic Rate Band in England, Wales & Northern Ireland
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£0 - 37,500
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£0 - £37,500
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£0 - £34,500
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£0 - £33,500
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£0 - £32,000
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Higher Rate Band in England, Wales & Northern Ireland
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£33,500 - £150,000
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£33,500 - £150,000
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£33,500 - £150,000
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£33,500 - £150,000
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£32,001 - £150,000
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Additional Rate in England, Wales & Northern Ireland
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Over £150,000
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Over £150,000
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Over £150,000
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Over £150,000
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Over £150,000
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Tax bands for Scotland
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Starter Rate Band
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£0 - £2,085
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£0 - £2,049
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£0 - £2000
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N/A
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N/A
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Basic Rate Band
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£2,086 - £12,658
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£2,050 - £12,444
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£2,001 - £12,150
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£0 - £31,500
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£0 - £32,000
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Intermediate Rate Band
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£12,659 - £30,930
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£12,445 - £30,930
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£12,151 - £31,580
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N/A
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N/A
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Higher Rate Band
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£30,931 - £150,000
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£30,931 - £150,000
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£31,581 - £150,00
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£31,501 - £150,00
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£32,001 - £150,00
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Top Rate Band
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Over £150,000
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Over £150,000
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Over £150,000
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Over £150,000
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Over £150,000
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National Insurance Contributions
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Rates
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Class 1 (Earnings between Primary and Upper earnings limits)
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12%
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12%
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12%
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12%
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12%
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Class 1 (Earnings above Upper earnings limit)
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2%
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2%
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2%
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2%
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2%
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Class 1A (Employers NI earnings over Primary earnings limit)
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13.8%
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13.8%
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13.8%
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13.8%
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13.8%
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Class 1A (Employers NI on Benefits)
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13.8%
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13.8%
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13.8%
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13.8%
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13.8%
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Class 2 (Flat rate for self-employed)
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£3.05 pw
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£3 pw
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£2.95 pw
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£2.85 pw
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£2.80 pw
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Class 3 (Voluntary)
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£15.30 pw
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£15.00
pw
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£14.65 pw
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£14.25 pw
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£14.10 pw
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Class 4 (Self-Employed Profits between Lower and Upper earnings limits)
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9%
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9%
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9%
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9%
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9%
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Class 4 (Self-Employed profits above Upper earnings limit)
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2%
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2%
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2%
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2%
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2%
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National Insurance Contributions
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Weekly Lower Earnings Limit (LEL)
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£120 pw
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£118 pw
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£116 pw
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£113pw
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£112 pw
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Weekly Primary Threshold (PT)
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£183 pw
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£166 pw
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£162 pw
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£157 pw
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£155 pw
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Secondary Threshold (ST)
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£169 pw
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£166 pw
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£162 pw
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£157 pw
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£156 pw
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Upper Earnings (UEL)
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£962 pw
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£962 pw
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£892 pw
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£866 pw
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£827 pw
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Upper Profits Limit (UPL)
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£50,000
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£50,000
per year
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£46,350
per year
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£45,000
per year
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£43,000
per year
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Upper Secondary Thresholds for U21’s
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£962 pw
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£962 pw
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£892 pw
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£866 pw
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£827 pw
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Small Profits Threshold (SPT)
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£6475
per year
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£6,365
per year
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£6,205
per year
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£6,025
per year
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£5,965
per year
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Lower Profits Limit (LPL)
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£9,500
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£8,632
per year
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£8,424
per year
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£8,164
per year
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£8,060
per year
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Employment Allowance
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£4,000
per year
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£3,000
per year
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£3,000
per year
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£3,000
per year
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£3,000
per year
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Apprentice Upper Secondary Threshold (AUST) for under 25’s
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£962
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£962
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£892
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£866
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£827
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Working and Child Tax Credits
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Working Tax Credit and Child Tax Credit have been replaced by Universal Credit for most people.
Working Tax Credit (per year unless stated otherwise)
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Basic Element
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£3,040
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£1,960 £1,960
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£1,960
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£1,960
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Couple and lone parent element
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£2,045
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£2,010
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£2,010
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£2,010
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£2,010
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30 hour element
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£825
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£810
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£810
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£810
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£810
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Disabled worker element
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£3,220
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£3,165
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£3,090
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£3,000
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£2,970
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Severe disability element
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£1,390
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£1,365
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£1,330
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£1,290
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£1,275
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CHILDCARE ELEMENT
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Maximum eligible cost for one child
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£175 pw
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£175 pw
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£175 pw
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£175 pw
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£175 pw
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Maximum eligible cost for two or more children
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£300 pw
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£300 pw
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£300 pw
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£300 pw
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£300 pw
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Percent of eligible costs covered
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70%
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70%
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70%
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70%
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70%
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Child Tax Credit (per year)
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Family element
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£545
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£545 £545
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£545
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£545
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Child element
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£2,830
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£2,780
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£2,780
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£2,780
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£2,780
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Disabled child element
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£3,415
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£3,355
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£3,275
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£3,175
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£3,140
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Severely disabled child element
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£1,385
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£1,360
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£1,325
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£1,290
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£1,275
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Child Benefit and Guardian's Allowance
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Per Week
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Child Benefit – First Child
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£21.05
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£20.70
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£20.70
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£20.70
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£20.70
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Child Benefit – Second and subsequent children
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£13.95
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£13.70
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£13.70
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£13.70
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£13.70
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Guardian’s Allowance
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£17.90
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£17.60
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£17.20
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£16.70
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£16.55
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Tax Free Savings Accounts
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Individual Savings Account (ISA) subscription limit
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£20,000
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£20,000
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£20,000
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£20,000
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£15,240
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Junior ISA subscription limit
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£9,000
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£4,368
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£4,260
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£4,128
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£4,080
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Child Trust Fund (CTF) subscription limit
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£9,000
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£4,368
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£4,260
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£4,128
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£4,080
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Help to Buy ISA – Government Bonus up to
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£3,000
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£3000
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£3000
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£3,000
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£3,000
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Fuel Benefit Charge
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Car fuel benefit charge multiplier
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£24,500
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£24,100
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£23,400
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£22,600
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£22,200
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Van fuel benefit charge
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£666
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£655
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£633
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£610
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£598
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Van Benefit Charge
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Van benefit charge
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£3,490
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£3,430
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£3,350
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£3,230
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£3,170
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Authorised Mileage Rates
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Per mile
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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CARS
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First 10,000 miles
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45p
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45p
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45p
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45p
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45p
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Additional miles
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25p
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25p
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25p
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25p
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25p
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Each qualifying passenger
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5p
|
5p
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5p
|
5p
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5p
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OTHER VEHICLES
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|
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Motorcycles
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24p
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24p
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24p
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24p
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24p
|
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Bikes
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20p
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20p
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20p
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20p
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20p
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Capital Gains Tax
|
|
2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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For taxpayers gains falling in the basic rate tax band (residential property and carried interest)
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10%
(18%)
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10%
(18%)
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10%
(18%)
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10%
(18%)
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10%
(18%)
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For trustees and taxpayers gains falling into higher/additional rate tax bands (residential property and carried interest)
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20%
(28%)
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20%
(28%)
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20%
(28%)
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20%
(28%)
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20%
(28%)
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Annual Exempt Amount – Individuals
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£12,300
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£12,000
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£11,700
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£11,300
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£11,100
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Annual Exempt Amount – Trusts
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£6,150
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£6,000
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£5,850
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£5,650
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£5,550
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Entrepreneurs relief lifetime limit
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£1m
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£10m
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£10m
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£10m
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£10m
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Entrepreneurs rate
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10%
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10%
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10%
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10%
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10%
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VAT
|
|
VAT Rates
|
|
2020/21
|
2019/20
|
2018/19
|
2017/18
|
2016/17
|
|
Standard rate
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20%
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20%
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20%
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20%
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20%
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Reduced rate
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5%
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5%
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5%
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5%
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5%
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VAT Registration Thresholds
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Registration threshold
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£85,000
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£85,000
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£85,000
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£85,000
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£83,000
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De-registration threshold
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£83,000
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£83,000
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£83,000
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£83,000
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£81,000
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Capital Allowances
|
|
Expenditure on:
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Plant & Machinery
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18%
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18%
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18%
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18%
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18%
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Plant & Machinery in certain enterprise zones
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100%
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100%
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100%
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100%
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100%
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|
Cars bought from April 2018:
|
|
|
|
|
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<50g/km
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100%
|
100%
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100%
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N/A
|
N/A
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>51g/km – 110g/km
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18%
|
18%
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18%
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N/A
|
N/A
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>110g/km
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6%
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8%
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8%
|
N/A
|
N/A
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Cars bought between April 2015 and April 2018:
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|
|
|
|
|
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<75g/km
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N/A
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N/A
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N/A
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100%
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100%
|
|
>76g/km – 130g/km (1)
|
N/A
|
N/A
|
N/A
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18%
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18%
|
|
>130g/km (1)
|
N/A
|
N/A
|
N/A
|
8%
|
8%
|
|
New and unused zero emission goods vehicles
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100%
|
100%
|
100%
|
100%
|
100%
|
|
Long life assets / integral features in buildings
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6%
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8%
|
8%
|
8%
|
8%
|
|
Research and Development
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100%
|
100%
|
100%
|
100%
|
100%
|
|
Energy saving and water efficient plant and machinery
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N/A
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100%
|
100%
|
100%
|
100%
|
|
Renovation of business premises (disadvantaged areas)
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N/A
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N/A
|
N/A
|
N/A
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100%
|
|
Structures and buildings allowance(straight line)
|
3%
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2%
|
2%
(from 29/10/18)
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N/A
|
N/A
|
|
|
|
Annual Investment Allowance
|
|
1 Jan 2019
to
31 Dec 2020
|
1 Jan 2016
to
31 Dec 2018
|
1 Apr 2014
to
31 Dec 2015
|
1 Jan 2013
to
31 Mar 2014
|
|
100% allowance up to
|
£1,000,000
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£200,000
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£500,000
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£250,000
|
|
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Corporation Tax
|
|
Corporation Tax
|
|
2020/21
|
2019/20
|
2018/19
|
2017/18
|
2016/17
|
|
Main rate
(all profits except ring fence)
|
19%
|
19%
|
19%
|
19%
|
20%
|
|
Special rate for unit trusts and open-ended investment companies
|
20%
|
20%
|
20%
|
20%
|
20%
|
|
|
|
|
|
|
|
|
|
|
Pension Contributions
|
|
|
2020/21
|
2019/20
|
2018/19
|
2017/18
|
2016/17
|
|
Annual Allowance (see notes)
|
£40,000
|
£40,000
|
£40,000
|
£40,000
|
£40,000
|
|
Lifetime Allowance
|
£1.07m
|
£1.05m
|
£1.03m
|
£1.03m
|
£1.0m
|
|
Money Purchase Annual Allowance
|
£4,000
|
£4,000
|
£4,000
|
£4,000
|
£4,000
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- Tax relief is given for pension contributions up to the lower of 100% of earnings or the maximum contribution. The maximum contribution is the annual allowance plus unutilised annual allowances from the three previous years. Up to £3,600 may be contributed to a pension irrespective of earnings.
- From 2016/17 the annual allowance is reduced by £1 for every £2 of adjusted income over £150,000, (and threshold income exceeds £110,000) to a minimum of £10,000.
- From 2020/21 the annual allowance is reduced by £1 for every £2 of adjusted income over £240,000 (and threshold income exceeds £200,000) to a minimum £4,000.
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Inheritance Tax
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2020/21
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2019/20
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2018/19
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2017/18
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2016/17
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Nil Rate Band
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£325,000
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£325,000
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£325,000
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£325,000
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£325,000
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Main residence nil rate band
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£175,000
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£150,000
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£125,000
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£100,000
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N/A
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Rate over nil band
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40%
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40%
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40%
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40%
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40%
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Stamp Duty
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INCREMENTAL RATES AS OF 4/12/14*
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Primary Property
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Additional Properties
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£1 - £125,000
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Nil
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3% (1)
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£125,001 - £250,000
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2%
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5%
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£250,001 - £925,000
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5%
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8%
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£925,001 - £1,500,000
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10%
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13%
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Above £1,500,000
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12%
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15%
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*There are different rules for the buying of a first home when the purchase price is less than
£500,000
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Article ID: 2435
Last updated: 25 Jun, 2020
Revision: 59
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Views: 18151
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