Goodman Jones Autumn Budget Summary 2021

27 October 2021 l BUDGET 3 PERSONAL TAXATION Main personal allowances and reliefs 2022/23 2021/22 Personal allowance 1 £12,570 £12,570 Married couple’s / civil partner’s transferable allowance £1,260 £1,260 Married couple’s / civil partner’s allowance at 10% 2 (if at least one born before 6/4/35) maximum £9,415 £9,125 minimum £3,640 £3,530 Blind person’s allowance £2,600 £2,520 Rent-a-room relief £7,500 £7,500 Registered pension schemes • Lifetime allowance £1,073,100 £1,073,100 • Annual allowance 3 £40,000 £40,000 • Money purchase annual allowance £4,000 £4,000 1. Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000. 2. Reduced by £1 for every £2 of adjusted net income over £31,400 (£31,400 for 2021/22), until the minimum is reached. 3. Reduced by £1 for every £2 of adjusted income over £240,000 to a minimum of £4,000, subject to threshold income being over £200,000. Income tax rates and bands 2022/23 2021/22 UK taxpayers excluding Scottish taxpayers’ non-dividend, non-savings income 20% basic rate on first slice of taxable income up to £37,700 £37,700 40% higher rate on next slice of taxable income over £37,700 £37,700 45% additional rate on taxable income over £150,000 £150,000 All UK taxpayers Starting rate at 0% – on band of savings income up to 4 £5,000 £5,000 Personal savings allowance at 0%: basic rate taxpayers £1,000 £1,000 higher rate taxpayers £500 £500 additional rate taxpayers £0 £0 Dividend allowance at 0% tax – all individuals £2,000 £2,000 Tax rates on dividend income: basic rate taxpayers 8.75% 7.5% higher rate taxpayers 33.75% 32.5% additional rate taxpayers 39.35% 38.1% 4. Not available if taxable non-savings income exceeds the starting rate band. Scottish taxpayers’ non-dividend, non-savings income 2022/23 2021/22 19% starter rate on taxable income up to £tbc £2,097 20% basic rate on next slice up to £tbc £12,726 21% intermediate rate on next slice up to £tbc £31,092 41% higher rate on next slice up to £tbc £150,000 46% top rate on income over £tbc £150,000 Trusts 2022/23 2021/22 Standard rate band generally £1,000 £1,000 Dividends (rate applicable to trusts) 39.35% 38.1% Other income (rate applicable to trusts) 45% 45% High income child benefit charge: 1% of benefit per £100 adjusted net income of £50,000 — £60,000.