Tax Rates 2020-2021
Income Tax Rates and Allowances for 2020-2021For 2020-21, the main rates of income tax will be the 20 per cent basic rate, 40 per cent higher rate and the additional rate will be 45%.
For 2020-21 the personal allowance for those aged under 65 will be set at £12,500 and the basic rate limit at £37,500.
Income Tax Bands of Taxable Income (£ per year)
Basic rate £0 - 37,500
Higher rate £37,501 - 150,000
Additional rate Over £150,000
Married Couples Tax Break announced (from 6/4/2015)
From 6/4/2015, married couples or civil partners can take advantage of a new transferable tax allowance.
If one of the married couple etc is a basic rate taxpayer i.e. he or she earns below £42,285 in 2015/16, and the other partner has unused personal allowance.
One partner can elect to transfer up to £1,000 of his/her allowance to the other, thereby the other partner saves £200 (£1,000 @20%).