2019/20 2020/21
£ £
Income tax rates (non-dividend income)
0% starting rate for savings only (note 1) Up to 5,000 Up to 5,000
20% basic rate tax 12,501-50,000 12,501-50,000
40% higher rate tax 50,001-150,000 50,001-150,000
45% additional rate tax Above 150,000 Above 150,000
Income tax rates – Dividend income
Dividend allowance £2,000 £2,000
Dividend ordinary rate (for dividends within basic rate band) 7.50% 7.50%
Dividend upper rate (for dividends within higher rate band) 32.50% 32.50%
Dividend additional rate (for dividends above higher rate band) 38.10% 38.10%
Child benefit/guardian’s allowance rates
Higher rate (eldest or only child) (per week) £20.70 £21.05
Other children £13.70 £13.95
Guardian’s allowance per week £17.60 £17.90
1. An income tax charge will apply to taxpayers with ‘adjusted net income’ exceeding £50,000 in a tax year, when child benefit is also received by them or their partner. The charge will reduce the financial benefit of receiving child benefit for those with income between £50,000 and £60,000 and remove it completely for taxpayers with income above £60,000.
2. From January 2021, no child benefit payments are made in respect of children living overseas. This will apply to EEA migrants arriving in the UK under the new immigration system.
Personal allowances
Personal allowance (note 1) 12,500 12,500
Dividend allowance 2,000 2,000
Maximum married couple’s allowance for those born before 6 April 1935 (note 2) 8,915 8,915
Married couple’s allowance – minimum amount 3,450 3,450
Micro entrepreneur’s allowance: individuals making property or trading incomes below the level of the allowance will no longer need to declare or pay tax, while those whose income exceeds the allowance have the choice of simply deducting the allowance instead of calculating their exact expenses or calculating their profits in the normal manner Allowance:
Income limit (note 3) 100,000 100,000
Income limit for married couple’s allowance: born before 6 April 1935 29,600 29,600
Blind person’s allowance 2,450 2,450
Rent-a-room relief 7,500 7,500
Transferable/shareable tax allowance for married couples and civil partners (note 4) 1,250 1,250
Personal savings allowance for basic rate taxpayers (note 5) 1,000 1,000
Personal savings allowance for higher rate taxpayers 500 500
Personal savings allowance for additional rate taxpayers 0 0
Note 1: From 2016/17 onwards, all individuals are entitled to the same personal allowance, regardless of the individual’s date of birth. This allowance is subject to the £100,000 income limit which applies regardless of the individual’s date of birth.
Note 2: This allowance is reduced by £1 for every £2 of income in excess of the income limit, but married couple’s allowance will not reduce below £3,450.
Note 3: Personal allowances are subject to the £100,000 income limit, which applies regardless of the individual’s date of birth. 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, down to zero.
Note 4: This allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax, or not liable at the higher or additional rates, can transfer this amount of their unused personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rates.

If the couple marry or register a civil partnership, they will get the allowance on a pro-rata basis for the rest of that tax year. If one of them dies or there is a divorce or separation, the allowance continues until the end of the tax year.