Individuals Exel Accountancy in Watford

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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