Income tax rates and allowances
Income Tax Allowances
Income Tax Allowances table 2020-21 and 2021-22
Income Tax allowances |
2020-21 |
2021-22 |
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Personal Allowance for people born after 5 April 1948 |
£12,570 |
£12,570 |
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Income limit for Personal Allowance (1) |
£100,000 |
£100,000 |
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Transferable tax allowance for married couples and civil partners (2) |
£1,260 |
£1,260 |
- The Personal Allowance reduces where the income is above £100,000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age or date of birth.
- Available to spouses/civil partners born after 5 April 1938. This allowance is 10% of the personal allowance for those born after 5 April 1938. 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. The recipient is eligible to a tax reduction of 20% of the transferred amount. More information can be found here; https://www.gov.uk/marriage-allowance.
Income tax rates are different if you live in Scotland.
Income Tax Allowances in Scotland
Income Tax Allowances for Scottish tax year 2021-22
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 |
41% |
Top Rate |
over £150,000 |
46% |