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CLIENTS page
CLIENTS page
Income Tax Rates
|
INCOME TAX RATES - ENGLAND, WALES & NI - non-dividend income |
Tax rate |
2021/22 |
2020/21 |
Notes |
|
Savings starting rate |
0% |
£0-£5,000 |
£0-£5,000 |
Only available if non-savings income is less than this amount. |
|
Basic rate |
20% |
£0-£37,700 |
£0-£37,500 |
The rates of tax are after your Personal Allowances - so in 2021/22, you start paying the 40% higher rate of tax when your income exceeds £37,700 + £12,570 = £50,270 (2020/21 - £50,000). The tax bands are increased by gross pension and gift aid payments, thus giving you tax relief at higher rates. |
|
Higher rate |
40% |
£37,701-£150,000 |
£37,501- £150,000 | |
|
Additional rate |
45% |
> £150,000 |
> £150,000 |
|
INCOME TAX RATES - dividend income new rules from 6.4.2016 |
2021/22 |
2020/21 |
Notes |
|
Starting rate |
0% (to £2,000) |
0% (to £2,000) |
From 6.4.2016 the notional tax credit was abolished and new dividend tax rates announced. Any dividend income over the allowance is treated as the highest part of a taxpayer’s income to determine which tax band it falls into for the purpose of calculating the tax on dividends. |
|
Dividends within basic rate band |
7.5% |
7.5% | |
|
Dividends at higher rate band |
32.5% |
32.5% | |
|
Dividend at additional rate band |
38.1% |
38.1% |
|
SCOTTISH INCOME TAX RATES non-dividend income |
Tax rate |
2021/22 |
2020/21 |
Notes |
|
Starter rate |
19% |
£1-£2,097 |
£0-£2,085 |
The rates of tax are after personal allowances. You pay Scottish rates of income tax if you live in Scotland. Scottish taxpayers pay the same tax on dividends and savings interest as the rest of the UK. |
|
Basic rate |
20% |
£2,098-£12,726 |
£2,086-£12,658 | |
|
Intermediate rate |
21% |
£12,727-£31,092 |
£12,659-£30,930 | |
|
Higher rate |
41% |
£31,093-£150,000 |
£30,931- £150,000 | |
|
Additional rate band |
46% |
> £150,000 |
> £150,000 |
|
REMITTANCE BASIS CHARGE - for non UK domiciled persons resident in the UK |
2021/22 |
2020/21 |
Notes |
|
For 7 of the preceding 9 tax years |
£30,000 |
£30,000 |
If a person is not UK domiciled their income/capital gains arising outside the UK will be taxed in the UK on an arising basis. If you want to be taxed on the remittance basis, then you pay the RBC based on the number of years resident in the UK. |
|
For 12 of the preceding 14 tax years |
£60,000 |
£60,000 | |
|
For 15 of the preceding 20 tax years |
Deemed UK domiciled |
Deemed UK domiciled |