Income Tax Allowances

Like this page? Share it with your friends

Facebook
Twitter
LinkedIn
WhatsApp
Email
Print

If you are looking at Income Tax Allowances and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and look at tax efficient ways to legally minimise your income tax and optimise your tax relief.

Details2020-212021-222022-23
Personal Allowance for people born after 5 ApriI 1948 (1) (2)£12,500£12,570£12,570
Income limit for Personal Allowance (2)£100,000£100,000£100,000
Personal Allowance for people born between 6 April 1938 and 5 April 1948As aboveAs aboveAs above
Married Couple's Allowance (born before 6th April 1935 and aged 75 and over) (3) (4)£9,075£9,125£9,415
Income limit for the allowances for those born before 6 April 1948N/AN/AN/A
Income limit for the allowances for those born before 6 April 1938N/AN/AN/A
Minimum amount of Married Couple's Allowance£3,510£3,530£3,640
Blind Person's Allowance£2,500£2,520£2,600
Dividend Allowance£2,000£2,000£2,000
Personal savings allowance for basic rate tax payers (5)£1,000£1,000£1,000
Personal savings allowance for higher rate tax payers (5)£500£500£500
Total income limit for Married couples allowance£30,200£30,400£31,400
Transferable marriage allowance (6)£1,250£1,260£1,260
Trading allowance (7)£1,000£1,000£1,000
Property income allowance (8)£1,000£1,000£1,000

If you are looking at Income Ta Allowances and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and look at tax efficient ways to legally minimise your income tax and optimise your tax relief.

  1. From 6th April 2016 onwards, all individuals are entitled to the same personal allowance, regardless of date of birth.
  2. 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
  3. These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit.
  4. Tax relief for the Married Couple’s Allowance is given at the rate of 10 per cent.
  5. From 6th April 2016, the new Personal Savings Allowance results in basic rate taxpayers not paying tax on the first £1,000 of savings income they receive. Higher rate taxpayers do not pay tax on the first £500 of savings income.
  6. Introduced from 6 April 2015, 10% of the unused element of a personal allowance can be transferred between spouses, as long as the higher earning spouse does not pay income tax at above basic rate.
  7. The allowance was introduced from 6 April 2017. Where an individual’s trading income is lea than this allowance, full relief will be given so that the income is not charged to tax, unless the individual elects otherwise. If the individual’s trading income is more than this allowance, the individual may elect to deduct this allowance from the trading income instead of the usual method of deducting the actual expenses incurred. This allowance does not apply to partnership trading income.
  8. The allowance was introduced from 6 April 2017. Where an individual’s property income is less than this allowance, full relief will be given so that the income is not charged to tax, unless the individual elects otherwise. If the individual’s property income is more than this allowance, the individual may elect to deduct this allowance from the property income instead of the usual method of deducting the actual expenses incurred. This allowance does not apply to partnership property income nor income to which rent a room relief is given.

Please contact us for further information.

Disclaimer : This website and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the
authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or
guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information without this website.

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

Related pages:

Get further information from the following pages;

Income Tax Rates

National Insurance Contributions

Charitable giving

ISA

Related Blogs:

Get further information from the following blogs;


Facebook
Twitter
LinkedIn
WhatsApp
Email
Print

Subscribe to our newsletter

Get in touch

Book a free call at time of your convenience

Install Naail & Co app

Install Naail & Co App on your Smartphone or Tablet. Tax calculators, business mileage tracker, deadlines & thresholds, business & tax news and much more!