The Chancellor announced the following income tax rates and allowances.
Income tax rates and bands
2020/21 |
2019/20 |
||
|
Band £ |
Rate % |
Band £ |
Rate % |
|
0 - 37,500 |
20 |
0 - 37,500 |
20 |
|
37,501 - 150,000 |
40 |
37,501 - 150,000 |
40 |
|
Over 150,000 |
45 |
Over 150,000 |
45 |
Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.
Savings income
2020/21 |
2019/20 |
|
|
Savings allowance basic rate |
£1,000 |
£1,000 |
|
Savings allowance higher rate |
£500 |
£500 |
A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.
Dividend income
|
2020/21 |
2019/20 |
|
|
Dividend allowance |
£2,000 |
£2,000 |
|
Dividend ordinary rate |
7.5% |
7.5% |
|
Dividend upper rate |
32.5% |
32.5% |
|
Dividend additional rate |
38.1% |
38.1% |
Personal allowances
|
2020/21 |
2019/20 |
|
|
Personal allowance |
£12,500 |
£12,500 |
|
Personal allowance income limit |
£100,000 |
£100,000 |
|
Marriage allowance Transferable between certain spouses where neither pay tax above the basic rate |
£1,250 |
£1,250 |
|
Married couple's allowance (relief given at 10%) Either partner born before 6 April 1935
|
£9,075 £3,510 £30,200 |
£8,915 £3,450 £29,600 |
|
Blind person's allowance |
£2,500 |
£2,450 |
Scottish income tax rates and bands
Savings and dividend income are taxed using UK rates and bands.
|
2020/21 |
2019/20 |
||
|
Band £ |
Rate % |
Band £ |
Rate % |
|
0 - 2,085 |
19 |
0 - 2,049 |
19 |
|
2,086 - 12,658 |
20 |
2,050 - 12,444 |
20 |
|
12,659 - 30,930 |
21 |
12,445 - 30,930 |
21 |
|
30,931 - 150,000 |
41 |
30,931 - 150,000 |
41 |
|
Over 150,000 |
46 |
Over 150,000 |
46 |
Welsh income tax rates
Although income tax for Wales has been devolved, Welsh resident taxpayers continue to pay the same overall rates as taxpayers in England and Northern Ireland.