PLEASE NOTE: the figures shown below apply to Scottish taxpayers. English taxpayers have different rates and bands. For more details, visit https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past
The income tax Personal Allowance for the year 2021/2022 is £12,570 (2020/2021 - £12,500). If your total income is less than this during the tax year, you have no tax to pay.
Tax rates 2020-21: Income Tax Personal Allowances
Your personal tax allowance is set by the UK government. You will also pay the same tax as the rest of the UK on dividends and savings interest.
2021 / 2022
2020 / 2021
Personal Allowance(1)
£12,570
£12,500
Income limit for Personal Allowance(1)
£100,000
£100,000
Income limit for married couple's allowance(2)
£30,400
£29,600
Maximum amount of Married Couple's allowance for people born before 6 April 1935(3)
£9,125
£9,075
Minimum amount of Married Couple's allowance for people born before 6 April 1935(4)
£3,530
£3,510
Blind person's allowance
£2,520
£2,500
Transferable Tax Allowance for married couples and civil partners(5)
£1,260
£1,250
Dividend allowance(6)
£2,000
£2,000
Personal savings allowance for basic rate taxpayers(7)
£1,000
£1,000
Personal savings allowance for higher rate taxpayers(7)
£500
£500
(1). This allowance is subject to the £100,000 income limit. The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.
(2).This age-related allowance is reduced by £1 for every £2 of income above this limit.
(3). This allowance is subject to the £30,400 income limit. The individual’s married couple’s allowance is reduced by £1 for every £2 above the limit. That reduction only applies after any reduction to their personal allowance (see note 1). The individual’s married couple’s allowance is never reduced below the minimum amount. Tax relief for the Married Couple's Allowance is given at the rate of 10%.
(4). This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.
(5). This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rate, can transfer this amount of their personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rate. The recipient is eligible to a tax reduction of 20% of the transferred amount.
(6). Individuals will not have to pay tax on the first £2,000 of dividend income they receive.
(7). Basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income.
Income tax bands and rates 2021-2022
Band Rate
Taxable income 2021/2022
Taxable income 2020/2021
Tax rate %
Personal Allowance
Up to £12,500
Up to £12,500
0
Starter rate
£12,501 to £14,667
£12,501 to £14,585
19
Basic rate
£14,668 to £25,296
£14,586 to £25,158
20
Intermediate rate
£25,297 to £43,662
£25,159 to £43,430
21
Higher rate
£43,663 to £150,000
£43,431 to £150,000
41
Top rate
over £150,000
over £150,000
46
Your income tax applies to your wages, pensions and most other forms of taxable income.
For further information about the 2021 Budget changes please click here.
PLEASE NOTE: the figures shown below apply to Scottish taxpayers. English taxpayers have different rates and bands. For more details, visit https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past
The income tax Personal Allowance for the year 2021/2022 is £12,570 (2020/2021 - £12,500). If your total income is less than this during the tax year, you have no tax to pay.
Tax rates 2020-21: Income Tax Personal Allowances
Your personal tax allowance is set by the UK government. You will also pay the same tax as the rest of the UK on dividends and savings interest.
2021 / 2022
2020 / 2021
Personal Allowance(1)
£12,570
£12,500
Income limit for Personal Allowance(1)
£100,000
£100,000
Income limit for married couple's allowance(2)
£30,400
£29,600
Maximum amount of Married Couple's allowance for people born before 6 April 1935(3)
£9,125
£9,075
Minimum amount of Married Couple's allowance for people born before 6 April 1935(4)
£3,530
£3,510
Blind person's allowance
£2,520
£2,500
Transferable Tax Allowance for married couples and civil partners(5)
£1,260
£1,250
Dividend allowance(6)
£2,000
£2,000
Personal savings allowance for basic rate taxpayers(7)
£1,000
£1,000
Personal savings allowance for higher rate taxpayers(7)
£500
£500
(1). This allowance is subject to the £100,000 income limit. The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.
(2).This age-related allowance is reduced by £1 for every £2 of income above this limit.
(3). This allowance is subject to the £30,400 income limit. The individual’s married couple’s allowance is reduced by £1 for every £2 above the limit. That reduction only applies after any reduction to their personal allowance (see note 1). The individual’s married couple’s allowance is never reduced below the minimum amount. Tax relief for the Married Couple's Allowance is given at the rate of 10%.
(4). This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935.
(5). This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rate, can transfer this amount of their personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rate. The recipient is eligible to a tax reduction of 20% of the transferred amount.
(6). Individuals will not have to pay tax on the first £2,000 of dividend income they receive.
(7). Basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income.
Income tax bands and rates 2021-2022
Band Rate
Taxable income 2021/2022
Taxable income 2020/2021
Tax rate %
Personal Allowance
Up to £12,500
Up to £12,500
0
Starter rate
£12,501 to £14,667
£12,501 to £14,585
19
Basic rate
£14,668 to £25,296
£14,586 to £25,158
20
Intermediate rate
£25,297 to £43,662
£25,159 to £43,430
21
Higher rate
£43,663 to £150,000
£43,431 to £150,000
41
Top rate
over £150,000
over £150,000
46
Your income tax applies to your wages, pensions and most other forms of taxable income.
For further information about the 2021 Budget changes please click here.
Optimize Financial Solutions Limited is an appointed representative of Quilter Financial Services Ltd and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority.
Optimize Financial Solutions Limited is registered in Scotland, Company No: SC236906. Registered Address 43 Gauze Street, Paisley, Renfrewshire, PA1 1EX.
The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.
