2020/21 TAX RATES
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
A starting rate of 0% may be available unless taxable non-savings income exceeds £5,000.
pre 6.4.20
after 5.4.20
CO2 emissions (g/km)
taxed
taxed
For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.
small profits threshold £6,475 per annum
£50,000 plus 2% on profits over £50,000
Residential rates may be increased by 3% where further residential properties are acquired.
£
£
£
£
First-Time Buyer relief may apply to residential purchases up to £500,000.
2020/21 and 2019/20
Different rates apply for ring-fenced (broadly oil industry) profit.
First Year Allowance (FYA) on certain energy-efficient
Annual Investment Allowance (AIA) from 1 January 2021
Excludes cars and expenditure already qualifying for FYA
Writing Down Allowance
Expenditure not qualifying for AIA or FYA:
From April 2020
Disclaimer: Rates are for guidance only. No responsibility for loss occasioned by any person acting/ refraining from action as a result of this information can be accepted by the authors or firm.
Applies to apprentices under 19, or 19 and over in the first year of apprenticeship. NLW applies to those aged 25 and over.
2020/2021 and 2019/20
• Income tax relief at 30% • Capital gains exemption on disposal
Unlimited amounts of capital gains from the disposal of other assets may be able to be deferred by making an EIS investment.
• Income tax relief at 50% • Capital gains exemption on disposal
Capital gains from the disposal of other assets may be exempt up to £50,000 per annum by making an SEIS investment.
• Income tax relief at 30% • Capital gains exemption on disposal
Dividends received from VCTs may be exempt from income tax.
All reliefs subject to detailed conditions being met.