TG&Co

Chartered Accountants

Principals:
Stephen Grant BCom CA
Karen Szotek BSc ACCA
Joanna Grant BSc ACA

Phone: 01786 430830

Personal tax


Technical Reference

Income Tax Rates
19 / 20 19 / 20 20 / 21 20 / 21
Income Rate Income Rate
£0-5,000(savings) 10% £0-5,000(savings) 0%
0-2,049 19% 0-2,095 19%
2,050-12,444 20% 2,086-12,658 20%
12,445-30,930 21% 12,659-30,930 21%
30,931-150,000 40% 30,931-150,000 41%
>150,000 46% >150,000 46%
Income Tax Allowances
19 / 20 20 / 21
Single person <65 12,500 12,500
Personal allowance limit 100,000 100,000
Age allowance limit 29,600 30,200
Savings allowance (BR) 1,000 1,000
Savings allowance (HR) 500 500
Dividend Tax
19 / 20 20 / 21
Dividend allowance 2,000 2,000
Ordinary rate 7.5% 7.5%
Upper rate 32.5% 32.5%
Additional rate 38.1% 38.1%
Scottish Land and Buildings Transaction Tax (residential property)
% Proceeds
0 £0-145,000
2 >£145,001-250,000
5 >£250,001-325,000
10 >£325,001-750,000
12 >£750,000

LBTT has been temporarily suspended until 313/21 on proceeds up to £250,000

Inheritance Tax
19 / 20 19 / 20 20 / 21 20 / 21
Estate Rate Estate Rate
<=£325,000 nil <=£325,000 Nil
>325,000 40% >325,000 40%

Residence nil rate band £175,000 from 1 April 2020.

National Insurance Contributions - Class 1
Employees Not contracted out
LEL £120
<=£183 pw nil
183.01 to 962 12%
Over 962 2%
Employers
<=£169 nil
>169 13.8%
Class 2 Class 3
Weekly contribution £3.05 Weekly contribution £15.30
Small earnings exception £6,475
Class 4
£9,500-50,000 9% Over £50,000 2%

Capital Gains Tax
Capital gains are taxed at 10% (20% for higher rate taxpayers) after deduction of the annual exemption of £12,300. Residential property gains are taxed at 18% and 28%. Gains on business assets may be eligible for entrepreneurs relief which reduces the rate to 10% up to a lifetime limit of £10m.

HMRC

“No man in this country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or to his property as to enable the Inland Revenue to put the largest possible shovel into his stores” - Lord Clyde (1929)