Rates - Individuals

RATES - INDIVIDUALS

We have pulled together rates and allowances for individuals including Income tax rates, National Insurance rates, Dividend Income rates and reliefs, personal reliefs, Capital Gains tax and Pension allowances which may be useful to you.

National insurance contributions and rates

Class of NIC	Threshold	2020/21	2019/20	2018/19	2017/18	2016/17
Class 1 - Employers and employees pay depending on how much employee earns	Lower earnings limit (per week)	£120	£118	£116	£113	£112
	Primary earnings threshold (per week) - employees	£183	£166	£162	£157	£155
	Secondary earnings threshold (per week) - employers	£169	£166	£162	£157	£156
	Upper secondary earnings threshold (per week)	£962	£962	£892	£866	£827
	Employee's rate between employee's earnings threshold and upper earnings limits	12%	12%	12%	12%	12%
	Employee's rate above the upper earnings limit	2%	2%	2%	2%	2%
	Employer's rate (on all earnings, including those above the upper earnings limit)	13.80%	13.80%	13.80%	13.80%	13.80%
Class 1A and 1B - Employers pay directly on employee’s expenses or benefits	Rate	13.80%	13.80%	13.80%	13.80%	13.80%
Class 2 - Type 1 National Insurance for self employed	Standard rate (per week)	£3.05	£3.00	£2.95	£2.85	£2.80
	Small profits threshold (per year) (since 2015/16)	£6,475	£6,365	£6,205	£6,025	£5,965
	(Formerly known as the small earnings exception)	£6,475	£6,365	£6,205	£6,025	£5,965
Class 3 - Voluntary to fill or avoid gaps in your record.	Rate (per week)	£15.30	£15.00	£14.65	£14.25	£14.10
Class 4 - Type 2 National Insurance for self employed	Lower profits limit (per year)	£9,500	£8,632	£8,424	£8,164	£8,060
	Upper profits limit (per year)	£50,000	£50,000	£46,350	£45,000	£43,000
	Rate between lower and upper profits limits	9%	9%	9%	9%	9%
	Rate above upper profits limits	2%	2%	2%	2%	2%

Income Tax Rates

Bands	2020/21	2019/20	2018/19
England, Wales and Northern Ireland income tax rates
Savings starting rate @ 0% (1)	0 - 5000	0 - 5000	0 - 5000
Basic rate @ 20%	0 - 37,500	0 - 37,500	0 - 34,500
Higher rate @ 40%	37,501 - 150,000	37,501 - 150,000	34,501 - 150,000
Additional rate at 45%	Over 150,000	Over 150,000	Over 150,000
Scottish income tax rates
Starter rate @ 19%	0 - 14,585	0 - 14,549	N/A
Basic rate @ 20%	14586 - 25,158	14550 - 29,944	N/A
Intermediate rate @ 21%	25,159 - 43,430	29,945 - 43,430	N/A
Higher rate @ 41%	43,431 - 150,000	43,431 - 150,000	N/A
Top rate at 46%	Over 150,000	Over 150,000	N/A

(1) A starting rate for savings income only also applies. This is reduced depending on non savings income.

Personal reliefs

Bands	2020/21	2019/20	2018/19
Personal allowance
Personal allowance (1)	12,500	12,500	11,850
Married couples allowance
Age 75 & over (born before 6 April 1935)	9,075	8,915	8,695
Minimum amount	3,510	3,450	3,360
Maximum income	30,200	29,600	28,900
Married couples allowance (2)	1,250	1,250	1,185
Other allowances
Blind person's allowance	2,500	2,450	2,390
Rent a room” limit (3)	7,500	7,500	7,500
Trading income allowance	1,000	1,000	1,000
Property income allowance	1,000	1,000	1,000

(1) The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000. You do not get a Personal Allowance on taxable income over £125,000.

(2) Limited to 10% of personal allowance.

(3) Rents from furnished letting of rooms in main residence exempt for owners up to limit.

Dividend rates and allowances

Bands	2020/21	2019/20	2018/19
Dividend allowance @ 0%	2,000	2,000	2,000
Basic rate	7.50%	7.50%	7.50%
Higher rate	32.50%	32.50%	32.50%
Additional rate	38.10%	38.10%	38.10%

Capital Gains Tax

Bands	2020/21	2019/20	2018/19
Annual exempt amount for individuals (1)	12,300	12,000	11,700
Annual exempt amount for other trusts	6,150	6,000	5,850
Normal rate for individuals
Standard rate	10%	10%	10%
Higher rate	20%	20%	20%
Rate on disposal of residential property not eligible for private residence relief
Standard rate	18%	18%	18%
Higher rate	28%	28%	28%
Entrepreneurs relief
Entrepreneurs relief rate	10%	10%	10%
Limit for gains subject to entrepreneurs' Relief	£1,000,000	£10,000,000 (2)	£10,000,000

(1) Includes personal representatives for year of death and next 2 years and trusts for mentally disabled.

(2) Relief was reduced from 11 March 2020.

Pension allowance

Period	Annual allowance
2020/21	40,000
2019/20	40,000
2018/19	40,000
2017/18	40,000

From 2016/17 the allowance for individual with taxable income (including pension contributions) in excess of £150,000 is reduced / tapered by £1 for every £2 of income above that limit. Income (excluding pension contributions) must be in excess of £110,000 for this to apply.

Amounts are restricted if pensions have been flexibly accessed.

Rates - Individuals