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.
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.
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.
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Company address: Optimize Financial Solutions Limited, 43 Gauze Street, Paisley, Renfrewshire, PA1 1EX
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.