Starting April 2021, the allowance amount for personal income tax purposes is set to increase to £12,570 and will stay that way until April 2026. Effective for the entire UK.
Threshold for higher income tax of 40% will be £50,270 from April 2021 and will stay that way until April 2026. Effective for non-savings income in England, Wales and Northern Ireland and for the entire UK as regards savings income.
Pension Lifetime Allowance is frozen at the present level of £1.073 mil until April 2026.
Corporation Tax rate will rise from the current 19% to 25% in April 2023. The rate for profits up to £50K will stay at 19%, then a tapered rate for profits from £50K to £250K will apply, after which the 25% rate kicks in.
Capital Gains Tax Annual Exemption (£12,300), Inheritance Tax Nil Rate Band (£325K) and Inheritance Tax Main Residence Nil Rate Band (£175K) will stay as is until April 2026.
The threshold for employees after which National Insurance applies is raised to £9,568 starting April 2021 and will stay that way until April 2026.
Allowances for ISA (£20K) and Junior ISA (£9K) will stay as is.
This overview is prepared by JuRuss member Vladislav Zabrodin, Managing Partner at Capital Legal Services.