Individuals

Individuals

Personal Allowances

The standard personal allowance will rise to £12,500 from 6 April 2020. The age related allowances are gradually falling in line with age-related allowances given to taxpayers born since April 1948.

The transferrable allowance will apply from 6 April 2020 to couples (married or civil partners) where neither person pays tax at the 40% or 45% rates. The spouse who cannot use all their personal allowance against their own income will be able to opt to transfer 10% of their personal allowance to their spouse or civil partner.

The personal allowance is tapered away for individuals who have income over £100,000, at the rate of £1 for every £2 of income above that threshold.

The allowances have been announced as follows:

Band Rate Income after allowances 2020 to 2021 Income after allowances 2019 to 2020
Starting rate for savings 10% (0% from 2015 to 2016) Up to £5,000 Up to £5,000
Starter rate in Scotland 19% Up to £2,085 Up to £2,049
Basic rate in Scotland 20% £2,086 to £12,658 £2,050 to £12,444
Basic rate in England & Northern Ireland 20% Up to £37,500 Up to £37,500
Basic rate in Wales 20% Up to £37,500 Up to £37,500
Intermediate rate in Scotland 21% £12,659 to £30,930 £12,445 to £30,930
Higher rate in Scotland 40% £30,931 to £150,000 £30,931 to £150,000
Higher rate in England & Northern Ireland 40% £37,501 to £150,000 £37,501 to £150,000
Higher rate in Wales 40% £37,501 to £150,000 £37,501 to £150,000
Top rate in Scotland 46% Over £150,000 Over £150,000
England & Northern Ireland Additional rate 45% Over £150,000 Over £150,000
Wales Additional rate 45% Over £150,000 Over £150,000

* given as 10% reduction in tax liability, where one partner was born before 6 April 1935.

Other allowances
Allowances 2020 to 2021 2019 to 2020
Married Couple’s Allowance - maximum amount £9,075 £8,915
Married Couple’s Allowance - minimum amount £3,510 £3,450
Blind Person’s Allowance £2,500 £2,450

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Watford, WD18 9SB
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info@exelaccountancy.co.uk
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