September 18

What are the personal tax allowance rates for 2020/21?



What are the personal tax allowance rates for 2020/21?

You are here:
< All Topics

Here are a few figures worth knowing in 2020/21 to help maximise your tax allowances and exemptions:

Personal taxation: the National Insurance threshold is £9,500 and the Personal Allowance remains the same as last year, at £12,500.


  • The Annual Allowance for pensions is £40,000 and begins to taper (to a minimum of £4,000) for those who have an income above £240,000.
  • The Lifetime Allowance – the maximum amount you can have in a pension over a lifetime – has increased to £1,073,100.
  • From April, the new single-tier State Pension has risen to £175.20 per week and the older basic State Pension increased to £134.25 per week.

Savings: the annual amount you can save into a JISA (Junior Individual Savings Account) or Child Trust Fund has increased substantially, from £4,368 to £9,000. The ISA (Individual Savings Account) allowance, including the Lifetime ISA allowance if used, is £20,000.

Inheritance Tax (IHT): the current IHT nil-rate threshold is £325,000 for individuals and £650,000 for a married couple or civil partners. Beyond these thresholds, IHT is usually payable at a rate of 40%. The main residence nil-rate band, which may apply if you leave your main residence to a direct descendant, is £175,000.

Table of Contents


You may also like

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Use this Bottom Section to Promote Your Offer

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim