Income tax and personal savings
The Chancellor announced the following income tax rates and allowances.
Income tax rates and bands
| 2020/21 | 2019/20 | ||
|---|---|---|---|
| Band £ | Rate % | Band £ | Rate % |
| 0 - 37,500 | 20 | 0 - 37,500 | 20 |
| 37,501 - 150,000 | 40 | 37,501 - 150,000 | 40 |
| Over 150,000 | 45 | Over 150,000 | 45 |
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
Savings income
| Savings Allowance | 2020/21 | 2019/20 |
|---|---|---|
| Basic rate | £1,000 | £1,000 |
| Higher rate | £500 | £500 |
A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.
Dividend income
| Allowance/Rate | 2020/21 | 2019/20 |
|---|---|---|
| Dividend allowance | £2,000 | £2,000 |
| Dividend ordinary rate | 7.5% | 7.5% |
| Dividend upper rate | 32.5% | 32.5% |
| Dividend additional rate | 38.1% | 38.1% |
Personal allowances
| 2020/21 | 2019/20 | |
|---|---|---|
| Personal allowance | £12,500 | £12,500 |
| Personal allowance income limit | £100,000 | £100,000 |
| Marriage allowance Transferable between certain spouses where neither pay tax above the basic rate | £1,250 | £1,250 |
| Married couple's allowance (MCA) (relief given at 10%) Either partner born before 6 April 1935 | £9,075 | £8,915 |
| - minimum amount | £3,510 | £3,450 |
| - income limit | £30,200 | £29,600 |
| Blind person's allowance | £2,500 | £2,450 |
Scottish income tax rates and bands
Savings and dividend income are taxed using UK rates and bands.
| 2020/21 | 2019/20 | ||
|---|---|---|---|
| Band £ | Rate % | Band £ | Rate % |
| 0 - 2,085 | 19 | 0 - 2,049 | 19 |
| 2,086 - 12,658 | 20 | 2,050 - 12,444 | 20 |
| 12,659 - 30,930 | 21 | 12,445 - 30,930 | 21 |
| 30,931 - 150,000 | 41 | 30,931 - 150,000 | 41 |
| Over 150,000 | 46 | Over 150,000 | 46 |
Welsh income tax rates
Although income tax for Wales has been devolved, Welsh resident taxpayers continue to pay the same overall rates as taxpayers in England and Northern Ireland.
The practices of Attwoods are carried on by Attwoods Accountants Limited, Attwoods Business Services Limited, Attwoods (Bromsgrove) Limited, Attwoods (London) Limited and Attwoods CCA Limited. Regulated for a range of investment business activities by the Association of Chartered Certified Accountants.