Income tax
- No change to income tax rates.
- Personal allowance increased to £12,570 from 6 April 2021 and then frozen until 5 April 2026.
- Higher rate threshold increased to £50,270 from 6 April 2021 and then frozen until 5 April 2026.
- Additional rate threshold remains at £150,000.
National Insurance contributions (NICs)
Earnings threshold remains at £9,500 for the 2021/2022 tax year.
Capital gains tax
- No change to capital gains tax rates.
- Personal allowance remains at £12,300 and frozen until 5 April 2026.
Interest rate
The official rate of interest is reduced from 2.25% to 2% from 6 April 2021. This rate is relevant, amongst other things, to determine the benefit in kind charge arising on certain employee loans.
Corporation tax
- For the 2021/2022 tax year, the corporation tax remains 19%.
- The rate of corporation tax for larger companies will increase to 25% by 6 April 2023 with a new small company rate of 19% applying to smaller businesses.
Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.