Income Tax Allowances (UK excluding Scottish taxpayers)

2020/21 2021/22


Personal Allowance £12,500 £12,570
Personal Savings Allowance for Basic Rate Taxpayers £1,000 £1,000
Personal Savings Allowance for Higher Rate Tax Payers £500 £500
Personal Savings Allowance for Aditional Rate Taxpayers Nil Nil
Dividend Allowance (at 0%) £2,000 £2,000
Income Limit For Personal Allowances £100,000 £100,000
Marrigae Allowance (for spouse/civil partners born on or after 6th April 1935) Up to £1,250 Up To £1,260

Married/Civil Partners (if born before 6 April 1935) (2)(3)

£9,075 £9,125
Income limit for the allowances for those born before 6 April 1948 £30,200 £30,400
Minimum amount of Married Couples Allowance (3) £3,510 £3,530
Blind Person's Allowance £2,500 £2,520
Basic Rate Income Tax 20% 20%
Higher Rate Income Tax 40% 40%
Additional Rate Income Tax 45% 45%
Basic Rate Dividend Tax 7.5% 7.5%
Higher Rate Dividend Tax 32.5% 32.5%
Additional Rate Dividend Tax 38.1% 38.1%
Threshold of Taxable Income Above Which Higher Rate Applies £37,500 £37,700
Threshold of Taxable Income Above Which Additional Rate Applies £150,000 £150,000
Rent-a-Room Tax-Free Income £7,500 £7,500
Trust Dividend Tax Rate 38.1% 38.1%
Trust 'Other' Income Tax Rate 45% 45%


(1) 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.


(2) Where at least one spouse was born before 6th April 1935


(3) Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.

The value of investments and pensions and the income they produce can fall as well as rise. You may get back less than you invested

Click here to visit our Auto Enrolment site for information on workplace pensions and corporate benefits

The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK

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Quilter Financial Planning Complaints Department

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The Waterfront
Newcastle upon Tyne
NE15 8NY

Tel: 0191 241 0700


If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service

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