Allowances and thresholds update for 2021/22
- Personal allowance £12,570
- Basic rate band £37,700
- Blind person’s allowance £2,520
- Married couple’s allowance (born before 6/04/35) £9,125
- Income limit for age-related allowances £30,400
- Dividend allowance £2,000
- Personal savings allowance (basic rate taxpayer) £1,000
- (higher rate tax payer) £500
Personal allowance will be withdrawn at £1 for every £2 by which ‘adjusted’ income exceeds £100,000. No allowance will be given if adjusted income is £125,000 or more.
Up to 10% of the personal allowance (2020/21 £1,250; 2021/22 £1,260) can be transferred to a spouse or civil partner who is no more than a basic rate taxpayer.
Married couple’s allowance is reduced by £1 to every £2 b which adjusted income exceeds the income limit, down to a minimum of £3,530 (2020/21 £3,510)
*personal allowance and tax bands frozen until 2026
No change to capital gains tax, IHT & pensions for now.
NIC thresholds:
- Class 1 primary threshold £9,570 (£184 pw)
- Class 1 secondary threshold £8,840 (£170 pw)
- Class 4 profit threshold £9,570 pa
- Class 1 primary and Class 4 limit £50,270
- Class 2 £3.05 pw, profit limit £6,515
- Class 3 voluntary contributions £15.40 pw