HMRC tax rates and allowances for 2021/22

Tax rates and allowances for 2021/2022

¹ The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.

² The marriage allowance cannot be transferred to a recipient spouse liable to income tax at the higher or additional rate.

³ If non-savings taxable income exceeds the starting rate limit, the starting savings rate will not apply to savings income.

⁴ From 01 April 2023, the main rate of corporation tax will increase to 25% for profits in excess of £250,000. From the same date, a ‘small profits rate’ of 19% will apply to profits up to £50,000. For businesses with profits between £50,000 and £250,000, corporation tax will be charged at the main rate, subject to marginal relief provisions which will provide a gradual increase in the effective corporation tax rate.

⁵ Stamp duty land tax is charged at a rate of 3% above the current stamp duty land tax residential rates from 01 April 2016 on purchases by individuals of additional residential properties (such as second homes and buy-to-let properties), and by non-natural persons (companies, partnerships including companies or collective investment schemes) of a residential property, even if they do not own another residential property.

⁶ For purchases by first-time buyers of property worth £500,000 or less from 22 November 2017, the stamp duty land tax rate for a property valued £0 – 300,000 is 0% and for a property valued £300,001 – 500,000 is 0% on the consideration up to £300,000 and 5% on the remainder.

⁷ The 15% rate applies to certain acquisitions of residential property by “non-natural persons” (a company, a partnership including a company or a collective investment scheme).

⁸ A 2% surcharge will take effect from 01 April 2021 on non-UK residents purchasing residential property in England and Northern Ireland.

⁹ A temporary reduction in SDLT applies to purchases of residential property between 8 July 2020 and 30 June 2021 pursuant to which a purchaser only pays SDLT on amounts above £500,000. Between 01 July 2021 and 30 September 2021, purchasers of residential property will only be required to pay SDLT on amounts above £250,000. SDLT will return to the above stated rates from 01 October 2021. This relief temporarily replaces the relief for first-time buyers (see note 6 above).