Income tax rates and allowances
| 2019-20 | 2020-21 | |
| Personal allowance for people born after 5 April 1948 | £12,500 | £12,500 |
| Income limit for personal allowance (1) | £100,000 | £100,000 |
| Maximum married couples allowance born before 5 April 1935 | £8,915 | £8,915 |
| Minimum married couples allowance | £3,450 | £3,450 |
| Blind person allowance | £2,450 | £2,500 |
| Transferable tax allowance for married couples and civil partners (2) | £1,060 | £1,060 |
| Rent-A-Room limit | £7,500 | £7,500 |
CAPITAL GAINS TAX
2020-21 (per person) First £12,300 – exempt Tax at 10/20% (see notes 1 & 2)
- CGT at lower rate where total taxable gains and income are less than the upper limit of income tax basic rate.
- 8% surcharge for carried interest and gains on residential property, excluding main residence.
- 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 1935. 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 2020/21
Band | Taxable Income | Scottish Tax Rate |
Personal Allowance | Up to £12,500 | 0% |
Starter Rate | £12,501-£14,585 | 19% |
Basic Rate | £14,586-£25,158 | 20% |
Intermediate Rate | £25,159-£43,430 | 21% |
Higher Rate | £43,431 to £150,000 | 41% |
Top Rate | over £150,000 | 46% |
From 6th April 2019, the rates will also differ if you live in Wales.
