TAXFAX 202122
Private ClientsAllowances amp Reliefs 4
Individuals - Income Tax Rates amp Bands 5
Trusts - Income Tax Rates 6
Pension Contribution Reliefs 6
Capital Gains Tax (CGT) 7
Inheritance Tax (IHT) 8
Individual Savings Accounts (ISAs) 10
Corporation Tax 11
Research amp Development (RampD) Tax Credits 11
Capital Allowances 12
Value Added Tax (VAT) 13
Stamp Duty Land Tax (SDLT) 14
Annual Tax on Enveloped Dwellings (ATED) 18
Tax Free Mileage Rates 19
COVID-19 Tax Reliefs 19
National Insurance Contributions (NICs) 20
Employer NICs amp Freeports 21
TAXFAX 202122
Corporate amp Business
Property
Employment
Allowances amp Reliefs
202122 202021 Notes
Personal allowance pound12570 pound12500 i ii iii
10 of the personal allowance can be
transferred between spousescivil partners where neither is a higher rate tax payer
ii
Blind personrsquos allowance pound2520 pound2500
Marriedcivil partnerrsquos allowance
At least one partner born before 6 April 1935 pound9125 pound9075 ii iv
Minimum marriedcivil partnerrsquos allowance pound3530 pound3510 ii iv
Savings allowance for basic rate taxpayer pound1000 pound1000
Savings allowance for higher rate taxpayer pound500 pound500
Dividend allowance pound2000 pound2000
Rent-a-room maximum pound7500 pound7500
High income child benefit charge threshold pound50000 pound50000 v
Micro-entrepreneurs allowances
Trading income pound1000 pound1000
Property income pound1000 pound1000
Notes i Reduced by pound1 for every pound2 of income over pound100000 ii Non-residents may not be entitled to personal allowances in certain circumstances iii The personal allowance will be frozen until 5 April 2026 iv Available to persons born before 6 April 1935 - Reliefs for this allowance given at 10 - Reduced to the minimum allowance by pound1 for every pound2 of income over pound30400 (pound30200 in 202021) v Charge of 1 of the benefit per pound100 of adjusted net income over pound50000 100 of the benefit withdrawn when adjusted net income reaches pound60000
4 TAXFAX 202122
Bands 202122 202021
Starting rate limit pound5000 pound5000
Basic rate band pound1 - pound37700 pound1 - pound37500
Higher rate band pound37701 - pound150000 pound37501 - pound150000
Additional rate band Over pound150000 Over pound150000
Individuals - Tax Rates amp Bands
Rates 202122 202021
Basic rate 20 20
Higher rate 40 40
Additional rate 45 45
Starting rate for savings income 0 0
Dividend ordinary rate 75 75
Dividend upper rate 325 325
Dividend additional rate 381 381
TAXFAX 202122 5
Applicable to savings
Trusts - Income Tax Rates amp Bands
202122 202021 Notes
Lifetime allowance pound1073100 pound1073100 i ii
Annual allowance pound40000 pound40000 iii ivv
Money purchase annual allowance pound4000 pound4000
Notes i Subject to any registration of protected pension funds aggregate retirement benefits in excess of the lifetime allowance may be subject to the lifetime allowance charge of 55 of the surplus benefit ii The lifetime allowance is frozen until 5 April 2026 iii Personal contributions cannot exceed 100 of earnings or when aggregated with employer contributions the annual allowance plus unused allowances carried forward from the previous three years iv Maximum annual allowance pound40000 reduced by pound1 for every pound2 of ldquoadjusted incomerdquo over pound240000 to a minimum of pound4000 v Up to pound3600 pa gross can be paid into pensions irrespective of earnings to age 75
Pension Contribution Reliefs
202122 202021
Dividends Other Dividends Other
Interest in possession trusts and up to pound1000 for discretionary and accumulation and maintenance trusts
75 20 75 20
On income for non-interest in possession trusts over pound1000
381 45 381 45
Notes Trusts where the settlor or spousecivil partner retains an interest are taxed as the income of the settlor Trusts for the vulnerable can be taxed at the beneficiarys rate of tax
6 TAXFAX 202122
Capital Gains Tax (CGT)
Rates for individuals and trusts 202122 202021 Notes
Basic and standard rate taxpayers 10 10
Higher and additional rate taxpayers 20 20
Trusts and personal representatives 20 20
Gains qualifying for Business Asset
Disposal Relief
10 10
Gains qualifying for Investorsrsquo Relief 10 10
Gains on residential property 28 28 i
Gains on carried interest 28 28 i
Exemptions and reliefs
Annual exemption
202122 202021 Notes
Individuals pound12300 pound12300 ii
Trusts pound6150 pound6150 ii
Business Asset Disposal Relief pound1m pound1m
Investors Relief pound10m pound10m
Non-UK resident individuals are subject to CGT on direct and indirect disposals of UK real estate
Notes i To the extent that the basic rate band is unused a CGT rate of 18 will apply ii The annual exemptions are frozen until 5 April 2026
TAXFAX 202122 7
Inheritance Tax (IHT)
Rates and bands
On death
202122 202021 Notes
Nil rate band pound1 - pound325000 0 0 i
Over pound325000 40 40 ii
Residence nil rate band pound175000 pound175000 iiii
Main exemptionsreliefs
Spousecivil partner ndash both UK domiciled (or transferor non-domiciled) Unlimited
Gift from UK domiciled to non-UK domiciled spousecivil partner (An election is available for the non-UK domiciled spousecivil partner to be treated as UK domiciled for IHT purposes)
pound325000
Total annual gifts per donor pound3000
Small gifts per donee not exceeding pound250
Marriagecivil partnership gifts by - parent pound5000
- other relative pound2500
- other pound1000
Regular gifts out of surplus income Unlimited
UK charities plus those in the EU Norway and Iceland and unlimited political parties in the UK Unlimited
Business and agricultural property relief can be available at 50 or 100 on qualifying business or agricultural property
8 TAXFAX 202122
Notes i Nil rate band for estate of surviving spousecivil partner is increased by the percentage of the nil rate band unutilised by the predeceased spousecivil partner ii Tax rate reduces to 36 when at least 10 of net chargeable estate is left to charity iii Reduced by pound1 for every pound2 of the net value of the deceasedrsquos estate over pound2m iv The nil rate band and residence nil rate band will be frozen until 5 April 2026
Years 0-3 3-4 4-5 5-6 6-7 Over 7
Taper relief 0 20 40 60 80 100
Effective rate of IHT 40 32 24 16 8 0
TAXFAX 202122 9
Lifetime gifts to an individual are initially not chargeable and are fully exempt after seven years Gifts to relevant property trusts will be taxable at 20 on the excess over available nil rate band
Death within seven years of lifetime gifts ndash tax on value gifted is payable at death rates subject to taper relief
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Private ClientsAllowances amp Reliefs 4
Individuals - Income Tax Rates amp Bands 5
Trusts - Income Tax Rates 6
Pension Contribution Reliefs 6
Capital Gains Tax (CGT) 7
Inheritance Tax (IHT) 8
Individual Savings Accounts (ISAs) 10
Corporation Tax 11
Research amp Development (RampD) Tax Credits 11
Capital Allowances 12
Value Added Tax (VAT) 13
Stamp Duty Land Tax (SDLT) 14
Annual Tax on Enveloped Dwellings (ATED) 18
Tax Free Mileage Rates 19
COVID-19 Tax Reliefs 19
National Insurance Contributions (NICs) 20
Employer NICs amp Freeports 21
TAXFAX 202122
Corporate amp Business
Property
Employment
Allowances amp Reliefs
202122 202021 Notes
Personal allowance pound12570 pound12500 i ii iii
10 of the personal allowance can be
transferred between spousescivil partners where neither is a higher rate tax payer
ii
Blind personrsquos allowance pound2520 pound2500
Marriedcivil partnerrsquos allowance
At least one partner born before 6 April 1935 pound9125 pound9075 ii iv
Minimum marriedcivil partnerrsquos allowance pound3530 pound3510 ii iv
Savings allowance for basic rate taxpayer pound1000 pound1000
Savings allowance for higher rate taxpayer pound500 pound500
Dividend allowance pound2000 pound2000
Rent-a-room maximum pound7500 pound7500
High income child benefit charge threshold pound50000 pound50000 v
Micro-entrepreneurs allowances
Trading income pound1000 pound1000
Property income pound1000 pound1000
Notes i Reduced by pound1 for every pound2 of income over pound100000 ii Non-residents may not be entitled to personal allowances in certain circumstances iii The personal allowance will be frozen until 5 April 2026 iv Available to persons born before 6 April 1935 - Reliefs for this allowance given at 10 - Reduced to the minimum allowance by pound1 for every pound2 of income over pound30400 (pound30200 in 202021) v Charge of 1 of the benefit per pound100 of adjusted net income over pound50000 100 of the benefit withdrawn when adjusted net income reaches pound60000
4 TAXFAX 202122
Bands 202122 202021
Starting rate limit pound5000 pound5000
Basic rate band pound1 - pound37700 pound1 - pound37500
Higher rate band pound37701 - pound150000 pound37501 - pound150000
Additional rate band Over pound150000 Over pound150000
Individuals - Tax Rates amp Bands
Rates 202122 202021
Basic rate 20 20
Higher rate 40 40
Additional rate 45 45
Starting rate for savings income 0 0
Dividend ordinary rate 75 75
Dividend upper rate 325 325
Dividend additional rate 381 381
TAXFAX 202122 5
Applicable to savings
Trusts - Income Tax Rates amp Bands
202122 202021 Notes
Lifetime allowance pound1073100 pound1073100 i ii
Annual allowance pound40000 pound40000 iii ivv
Money purchase annual allowance pound4000 pound4000
Notes i Subject to any registration of protected pension funds aggregate retirement benefits in excess of the lifetime allowance may be subject to the lifetime allowance charge of 55 of the surplus benefit ii The lifetime allowance is frozen until 5 April 2026 iii Personal contributions cannot exceed 100 of earnings or when aggregated with employer contributions the annual allowance plus unused allowances carried forward from the previous three years iv Maximum annual allowance pound40000 reduced by pound1 for every pound2 of ldquoadjusted incomerdquo over pound240000 to a minimum of pound4000 v Up to pound3600 pa gross can be paid into pensions irrespective of earnings to age 75
Pension Contribution Reliefs
202122 202021
Dividends Other Dividends Other
Interest in possession trusts and up to pound1000 for discretionary and accumulation and maintenance trusts
75 20 75 20
On income for non-interest in possession trusts over pound1000
381 45 381 45
Notes Trusts where the settlor or spousecivil partner retains an interest are taxed as the income of the settlor Trusts for the vulnerable can be taxed at the beneficiarys rate of tax
6 TAXFAX 202122
Capital Gains Tax (CGT)
Rates for individuals and trusts 202122 202021 Notes
Basic and standard rate taxpayers 10 10
Higher and additional rate taxpayers 20 20
Trusts and personal representatives 20 20
Gains qualifying for Business Asset
Disposal Relief
10 10
Gains qualifying for Investorsrsquo Relief 10 10
Gains on residential property 28 28 i
Gains on carried interest 28 28 i
Exemptions and reliefs
Annual exemption
202122 202021 Notes
Individuals pound12300 pound12300 ii
Trusts pound6150 pound6150 ii
Business Asset Disposal Relief pound1m pound1m
Investors Relief pound10m pound10m
Non-UK resident individuals are subject to CGT on direct and indirect disposals of UK real estate
Notes i To the extent that the basic rate band is unused a CGT rate of 18 will apply ii The annual exemptions are frozen until 5 April 2026
TAXFAX 202122 7
Inheritance Tax (IHT)
Rates and bands
On death
202122 202021 Notes
Nil rate band pound1 - pound325000 0 0 i
Over pound325000 40 40 ii
Residence nil rate band pound175000 pound175000 iiii
Main exemptionsreliefs
Spousecivil partner ndash both UK domiciled (or transferor non-domiciled) Unlimited
Gift from UK domiciled to non-UK domiciled spousecivil partner (An election is available for the non-UK domiciled spousecivil partner to be treated as UK domiciled for IHT purposes)
pound325000
Total annual gifts per donor pound3000
Small gifts per donee not exceeding pound250
Marriagecivil partnership gifts by - parent pound5000
- other relative pound2500
- other pound1000
Regular gifts out of surplus income Unlimited
UK charities plus those in the EU Norway and Iceland and unlimited political parties in the UK Unlimited
Business and agricultural property relief can be available at 50 or 100 on qualifying business or agricultural property
8 TAXFAX 202122
Notes i Nil rate band for estate of surviving spousecivil partner is increased by the percentage of the nil rate band unutilised by the predeceased spousecivil partner ii Tax rate reduces to 36 when at least 10 of net chargeable estate is left to charity iii Reduced by pound1 for every pound2 of the net value of the deceasedrsquos estate over pound2m iv The nil rate band and residence nil rate band will be frozen until 5 April 2026
Years 0-3 3-4 4-5 5-6 6-7 Over 7
Taper relief 0 20 40 60 80 100
Effective rate of IHT 40 32 24 16 8 0
TAXFAX 202122 9
Lifetime gifts to an individual are initially not chargeable and are fully exempt after seven years Gifts to relevant property trusts will be taxable at 20 on the excess over available nil rate band
Death within seven years of lifetime gifts ndash tax on value gifted is payable at death rates subject to taper relief
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Allowances amp Reliefs
202122 202021 Notes
Personal allowance pound12570 pound12500 i ii iii
10 of the personal allowance can be
transferred between spousescivil partners where neither is a higher rate tax payer
ii
Blind personrsquos allowance pound2520 pound2500
Marriedcivil partnerrsquos allowance
At least one partner born before 6 April 1935 pound9125 pound9075 ii iv
Minimum marriedcivil partnerrsquos allowance pound3530 pound3510 ii iv
Savings allowance for basic rate taxpayer pound1000 pound1000
Savings allowance for higher rate taxpayer pound500 pound500
Dividend allowance pound2000 pound2000
Rent-a-room maximum pound7500 pound7500
High income child benefit charge threshold pound50000 pound50000 v
Micro-entrepreneurs allowances
Trading income pound1000 pound1000
Property income pound1000 pound1000
Notes i Reduced by pound1 for every pound2 of income over pound100000 ii Non-residents may not be entitled to personal allowances in certain circumstances iii The personal allowance will be frozen until 5 April 2026 iv Available to persons born before 6 April 1935 - Reliefs for this allowance given at 10 - Reduced to the minimum allowance by pound1 for every pound2 of income over pound30400 (pound30200 in 202021) v Charge of 1 of the benefit per pound100 of adjusted net income over pound50000 100 of the benefit withdrawn when adjusted net income reaches pound60000
4 TAXFAX 202122
Bands 202122 202021
Starting rate limit pound5000 pound5000
Basic rate band pound1 - pound37700 pound1 - pound37500
Higher rate band pound37701 - pound150000 pound37501 - pound150000
Additional rate band Over pound150000 Over pound150000
Individuals - Tax Rates amp Bands
Rates 202122 202021
Basic rate 20 20
Higher rate 40 40
Additional rate 45 45
Starting rate for savings income 0 0
Dividend ordinary rate 75 75
Dividend upper rate 325 325
Dividend additional rate 381 381
TAXFAX 202122 5
Applicable to savings
Trusts - Income Tax Rates amp Bands
202122 202021 Notes
Lifetime allowance pound1073100 pound1073100 i ii
Annual allowance pound40000 pound40000 iii ivv
Money purchase annual allowance pound4000 pound4000
Notes i Subject to any registration of protected pension funds aggregate retirement benefits in excess of the lifetime allowance may be subject to the lifetime allowance charge of 55 of the surplus benefit ii The lifetime allowance is frozen until 5 April 2026 iii Personal contributions cannot exceed 100 of earnings or when aggregated with employer contributions the annual allowance plus unused allowances carried forward from the previous three years iv Maximum annual allowance pound40000 reduced by pound1 for every pound2 of ldquoadjusted incomerdquo over pound240000 to a minimum of pound4000 v Up to pound3600 pa gross can be paid into pensions irrespective of earnings to age 75
Pension Contribution Reliefs
202122 202021
Dividends Other Dividends Other
Interest in possession trusts and up to pound1000 for discretionary and accumulation and maintenance trusts
75 20 75 20
On income for non-interest in possession trusts over pound1000
381 45 381 45
Notes Trusts where the settlor or spousecivil partner retains an interest are taxed as the income of the settlor Trusts for the vulnerable can be taxed at the beneficiarys rate of tax
6 TAXFAX 202122
Capital Gains Tax (CGT)
Rates for individuals and trusts 202122 202021 Notes
Basic and standard rate taxpayers 10 10
Higher and additional rate taxpayers 20 20
Trusts and personal representatives 20 20
Gains qualifying for Business Asset
Disposal Relief
10 10
Gains qualifying for Investorsrsquo Relief 10 10
Gains on residential property 28 28 i
Gains on carried interest 28 28 i
Exemptions and reliefs
Annual exemption
202122 202021 Notes
Individuals pound12300 pound12300 ii
Trusts pound6150 pound6150 ii
Business Asset Disposal Relief pound1m pound1m
Investors Relief pound10m pound10m
Non-UK resident individuals are subject to CGT on direct and indirect disposals of UK real estate
Notes i To the extent that the basic rate band is unused a CGT rate of 18 will apply ii The annual exemptions are frozen until 5 April 2026
TAXFAX 202122 7
Inheritance Tax (IHT)
Rates and bands
On death
202122 202021 Notes
Nil rate band pound1 - pound325000 0 0 i
Over pound325000 40 40 ii
Residence nil rate band pound175000 pound175000 iiii
Main exemptionsreliefs
Spousecivil partner ndash both UK domiciled (or transferor non-domiciled) Unlimited
Gift from UK domiciled to non-UK domiciled spousecivil partner (An election is available for the non-UK domiciled spousecivil partner to be treated as UK domiciled for IHT purposes)
pound325000
Total annual gifts per donor pound3000
Small gifts per donee not exceeding pound250
Marriagecivil partnership gifts by - parent pound5000
- other relative pound2500
- other pound1000
Regular gifts out of surplus income Unlimited
UK charities plus those in the EU Norway and Iceland and unlimited political parties in the UK Unlimited
Business and agricultural property relief can be available at 50 or 100 on qualifying business or agricultural property
8 TAXFAX 202122
Notes i Nil rate band for estate of surviving spousecivil partner is increased by the percentage of the nil rate band unutilised by the predeceased spousecivil partner ii Tax rate reduces to 36 when at least 10 of net chargeable estate is left to charity iii Reduced by pound1 for every pound2 of the net value of the deceasedrsquos estate over pound2m iv The nil rate band and residence nil rate band will be frozen until 5 April 2026
Years 0-3 3-4 4-5 5-6 6-7 Over 7
Taper relief 0 20 40 60 80 100
Effective rate of IHT 40 32 24 16 8 0
TAXFAX 202122 9
Lifetime gifts to an individual are initially not chargeable and are fully exempt after seven years Gifts to relevant property trusts will be taxable at 20 on the excess over available nil rate band
Death within seven years of lifetime gifts ndash tax on value gifted is payable at death rates subject to taper relief
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Bands 202122 202021
Starting rate limit pound5000 pound5000
Basic rate band pound1 - pound37700 pound1 - pound37500
Higher rate band pound37701 - pound150000 pound37501 - pound150000
Additional rate band Over pound150000 Over pound150000
Individuals - Tax Rates amp Bands
Rates 202122 202021
Basic rate 20 20
Higher rate 40 40
Additional rate 45 45
Starting rate for savings income 0 0
Dividend ordinary rate 75 75
Dividend upper rate 325 325
Dividend additional rate 381 381
TAXFAX 202122 5
Applicable to savings
Trusts - Income Tax Rates amp Bands
202122 202021 Notes
Lifetime allowance pound1073100 pound1073100 i ii
Annual allowance pound40000 pound40000 iii ivv
Money purchase annual allowance pound4000 pound4000
Notes i Subject to any registration of protected pension funds aggregate retirement benefits in excess of the lifetime allowance may be subject to the lifetime allowance charge of 55 of the surplus benefit ii The lifetime allowance is frozen until 5 April 2026 iii Personal contributions cannot exceed 100 of earnings or when aggregated with employer contributions the annual allowance plus unused allowances carried forward from the previous three years iv Maximum annual allowance pound40000 reduced by pound1 for every pound2 of ldquoadjusted incomerdquo over pound240000 to a minimum of pound4000 v Up to pound3600 pa gross can be paid into pensions irrespective of earnings to age 75
Pension Contribution Reliefs
202122 202021
Dividends Other Dividends Other
Interest in possession trusts and up to pound1000 for discretionary and accumulation and maintenance trusts
75 20 75 20
On income for non-interest in possession trusts over pound1000
381 45 381 45
Notes Trusts where the settlor or spousecivil partner retains an interest are taxed as the income of the settlor Trusts for the vulnerable can be taxed at the beneficiarys rate of tax
6 TAXFAX 202122
Capital Gains Tax (CGT)
Rates for individuals and trusts 202122 202021 Notes
Basic and standard rate taxpayers 10 10
Higher and additional rate taxpayers 20 20
Trusts and personal representatives 20 20
Gains qualifying for Business Asset
Disposal Relief
10 10
Gains qualifying for Investorsrsquo Relief 10 10
Gains on residential property 28 28 i
Gains on carried interest 28 28 i
Exemptions and reliefs
Annual exemption
202122 202021 Notes
Individuals pound12300 pound12300 ii
Trusts pound6150 pound6150 ii
Business Asset Disposal Relief pound1m pound1m
Investors Relief pound10m pound10m
Non-UK resident individuals are subject to CGT on direct and indirect disposals of UK real estate
Notes i To the extent that the basic rate band is unused a CGT rate of 18 will apply ii The annual exemptions are frozen until 5 April 2026
TAXFAX 202122 7
Inheritance Tax (IHT)
Rates and bands
On death
202122 202021 Notes
Nil rate band pound1 - pound325000 0 0 i
Over pound325000 40 40 ii
Residence nil rate band pound175000 pound175000 iiii
Main exemptionsreliefs
Spousecivil partner ndash both UK domiciled (or transferor non-domiciled) Unlimited
Gift from UK domiciled to non-UK domiciled spousecivil partner (An election is available for the non-UK domiciled spousecivil partner to be treated as UK domiciled for IHT purposes)
pound325000
Total annual gifts per donor pound3000
Small gifts per donee not exceeding pound250
Marriagecivil partnership gifts by - parent pound5000
- other relative pound2500
- other pound1000
Regular gifts out of surplus income Unlimited
UK charities plus those in the EU Norway and Iceland and unlimited political parties in the UK Unlimited
Business and agricultural property relief can be available at 50 or 100 on qualifying business or agricultural property
8 TAXFAX 202122
Notes i Nil rate band for estate of surviving spousecivil partner is increased by the percentage of the nil rate band unutilised by the predeceased spousecivil partner ii Tax rate reduces to 36 when at least 10 of net chargeable estate is left to charity iii Reduced by pound1 for every pound2 of the net value of the deceasedrsquos estate over pound2m iv The nil rate band and residence nil rate band will be frozen until 5 April 2026
Years 0-3 3-4 4-5 5-6 6-7 Over 7
Taper relief 0 20 40 60 80 100
Effective rate of IHT 40 32 24 16 8 0
TAXFAX 202122 9
Lifetime gifts to an individual are initially not chargeable and are fully exempt after seven years Gifts to relevant property trusts will be taxable at 20 on the excess over available nil rate band
Death within seven years of lifetime gifts ndash tax on value gifted is payable at death rates subject to taper relief
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Trusts - Income Tax Rates amp Bands
202122 202021 Notes
Lifetime allowance pound1073100 pound1073100 i ii
Annual allowance pound40000 pound40000 iii ivv
Money purchase annual allowance pound4000 pound4000
Notes i Subject to any registration of protected pension funds aggregate retirement benefits in excess of the lifetime allowance may be subject to the lifetime allowance charge of 55 of the surplus benefit ii The lifetime allowance is frozen until 5 April 2026 iii Personal contributions cannot exceed 100 of earnings or when aggregated with employer contributions the annual allowance plus unused allowances carried forward from the previous three years iv Maximum annual allowance pound40000 reduced by pound1 for every pound2 of ldquoadjusted incomerdquo over pound240000 to a minimum of pound4000 v Up to pound3600 pa gross can be paid into pensions irrespective of earnings to age 75
Pension Contribution Reliefs
202122 202021
Dividends Other Dividends Other
Interest in possession trusts and up to pound1000 for discretionary and accumulation and maintenance trusts
75 20 75 20
On income for non-interest in possession trusts over pound1000
381 45 381 45
Notes Trusts where the settlor or spousecivil partner retains an interest are taxed as the income of the settlor Trusts for the vulnerable can be taxed at the beneficiarys rate of tax
6 TAXFAX 202122
Capital Gains Tax (CGT)
Rates for individuals and trusts 202122 202021 Notes
Basic and standard rate taxpayers 10 10
Higher and additional rate taxpayers 20 20
Trusts and personal representatives 20 20
Gains qualifying for Business Asset
Disposal Relief
10 10
Gains qualifying for Investorsrsquo Relief 10 10
Gains on residential property 28 28 i
Gains on carried interest 28 28 i
Exemptions and reliefs
Annual exemption
202122 202021 Notes
Individuals pound12300 pound12300 ii
Trusts pound6150 pound6150 ii
Business Asset Disposal Relief pound1m pound1m
Investors Relief pound10m pound10m
Non-UK resident individuals are subject to CGT on direct and indirect disposals of UK real estate
Notes i To the extent that the basic rate band is unused a CGT rate of 18 will apply ii The annual exemptions are frozen until 5 April 2026
TAXFAX 202122 7
Inheritance Tax (IHT)
Rates and bands
On death
202122 202021 Notes
Nil rate band pound1 - pound325000 0 0 i
Over pound325000 40 40 ii
Residence nil rate band pound175000 pound175000 iiii
Main exemptionsreliefs
Spousecivil partner ndash both UK domiciled (or transferor non-domiciled) Unlimited
Gift from UK domiciled to non-UK domiciled spousecivil partner (An election is available for the non-UK domiciled spousecivil partner to be treated as UK domiciled for IHT purposes)
pound325000
Total annual gifts per donor pound3000
Small gifts per donee not exceeding pound250
Marriagecivil partnership gifts by - parent pound5000
- other relative pound2500
- other pound1000
Regular gifts out of surplus income Unlimited
UK charities plus those in the EU Norway and Iceland and unlimited political parties in the UK Unlimited
Business and agricultural property relief can be available at 50 or 100 on qualifying business or agricultural property
8 TAXFAX 202122
Notes i Nil rate band for estate of surviving spousecivil partner is increased by the percentage of the nil rate band unutilised by the predeceased spousecivil partner ii Tax rate reduces to 36 when at least 10 of net chargeable estate is left to charity iii Reduced by pound1 for every pound2 of the net value of the deceasedrsquos estate over pound2m iv The nil rate band and residence nil rate band will be frozen until 5 April 2026
Years 0-3 3-4 4-5 5-6 6-7 Over 7
Taper relief 0 20 40 60 80 100
Effective rate of IHT 40 32 24 16 8 0
TAXFAX 202122 9
Lifetime gifts to an individual are initially not chargeable and are fully exempt after seven years Gifts to relevant property trusts will be taxable at 20 on the excess over available nil rate band
Death within seven years of lifetime gifts ndash tax on value gifted is payable at death rates subject to taper relief
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Capital Gains Tax (CGT)
Rates for individuals and trusts 202122 202021 Notes
Basic and standard rate taxpayers 10 10
Higher and additional rate taxpayers 20 20
Trusts and personal representatives 20 20
Gains qualifying for Business Asset
Disposal Relief
10 10
Gains qualifying for Investorsrsquo Relief 10 10
Gains on residential property 28 28 i
Gains on carried interest 28 28 i
Exemptions and reliefs
Annual exemption
202122 202021 Notes
Individuals pound12300 pound12300 ii
Trusts pound6150 pound6150 ii
Business Asset Disposal Relief pound1m pound1m
Investors Relief pound10m pound10m
Non-UK resident individuals are subject to CGT on direct and indirect disposals of UK real estate
Notes i To the extent that the basic rate band is unused a CGT rate of 18 will apply ii The annual exemptions are frozen until 5 April 2026
TAXFAX 202122 7
Inheritance Tax (IHT)
Rates and bands
On death
202122 202021 Notes
Nil rate band pound1 - pound325000 0 0 i
Over pound325000 40 40 ii
Residence nil rate band pound175000 pound175000 iiii
Main exemptionsreliefs
Spousecivil partner ndash both UK domiciled (or transferor non-domiciled) Unlimited
Gift from UK domiciled to non-UK domiciled spousecivil partner (An election is available for the non-UK domiciled spousecivil partner to be treated as UK domiciled for IHT purposes)
pound325000
Total annual gifts per donor pound3000
Small gifts per donee not exceeding pound250
Marriagecivil partnership gifts by - parent pound5000
- other relative pound2500
- other pound1000
Regular gifts out of surplus income Unlimited
UK charities plus those in the EU Norway and Iceland and unlimited political parties in the UK Unlimited
Business and agricultural property relief can be available at 50 or 100 on qualifying business or agricultural property
8 TAXFAX 202122
Notes i Nil rate band for estate of surviving spousecivil partner is increased by the percentage of the nil rate band unutilised by the predeceased spousecivil partner ii Tax rate reduces to 36 when at least 10 of net chargeable estate is left to charity iii Reduced by pound1 for every pound2 of the net value of the deceasedrsquos estate over pound2m iv The nil rate band and residence nil rate band will be frozen until 5 April 2026
Years 0-3 3-4 4-5 5-6 6-7 Over 7
Taper relief 0 20 40 60 80 100
Effective rate of IHT 40 32 24 16 8 0
TAXFAX 202122 9
Lifetime gifts to an individual are initially not chargeable and are fully exempt after seven years Gifts to relevant property trusts will be taxable at 20 on the excess over available nil rate band
Death within seven years of lifetime gifts ndash tax on value gifted is payable at death rates subject to taper relief
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Inheritance Tax (IHT)
Rates and bands
On death
202122 202021 Notes
Nil rate band pound1 - pound325000 0 0 i
Over pound325000 40 40 ii
Residence nil rate band pound175000 pound175000 iiii
Main exemptionsreliefs
Spousecivil partner ndash both UK domiciled (or transferor non-domiciled) Unlimited
Gift from UK domiciled to non-UK domiciled spousecivil partner (An election is available for the non-UK domiciled spousecivil partner to be treated as UK domiciled for IHT purposes)
pound325000
Total annual gifts per donor pound3000
Small gifts per donee not exceeding pound250
Marriagecivil partnership gifts by - parent pound5000
- other relative pound2500
- other pound1000
Regular gifts out of surplus income Unlimited
UK charities plus those in the EU Norway and Iceland and unlimited political parties in the UK Unlimited
Business and agricultural property relief can be available at 50 or 100 on qualifying business or agricultural property
8 TAXFAX 202122
Notes i Nil rate band for estate of surviving spousecivil partner is increased by the percentage of the nil rate band unutilised by the predeceased spousecivil partner ii Tax rate reduces to 36 when at least 10 of net chargeable estate is left to charity iii Reduced by pound1 for every pound2 of the net value of the deceasedrsquos estate over pound2m iv The nil rate band and residence nil rate band will be frozen until 5 April 2026
Years 0-3 3-4 4-5 5-6 6-7 Over 7
Taper relief 0 20 40 60 80 100
Effective rate of IHT 40 32 24 16 8 0
TAXFAX 202122 9
Lifetime gifts to an individual are initially not chargeable and are fully exempt after seven years Gifts to relevant property trusts will be taxable at 20 on the excess over available nil rate band
Death within seven years of lifetime gifts ndash tax on value gifted is payable at death rates subject to taper relief
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Years 0-3 3-4 4-5 5-6 6-7 Over 7
Taper relief 0 20 40 60 80 100
Effective rate of IHT 40 32 24 16 8 0
TAXFAX 202122 9
Lifetime gifts to an individual are initially not chargeable and are fully exempt after seven years Gifts to relevant property trusts will be taxable at 20 on the excess over available nil rate band
Death within seven years of lifetime gifts ndash tax on value gifted is payable at death rates subject to taper relief
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
10 TAXFAX 202122
202122 202021 Notes
Cash shares and innovative finance combined limit
pound20000 pound20000
Junior ISA pound9000 pound9000 i
Help to buy ISA pound2400 pound2400 iiiii
Lifetime ISA pound4000 pound4000 iiiiv
Notes i Available to children not entitled to a Child Trust Fund ii First time buyers over 16 iii A 25 bonus from the Government is available iv Available to individuals over 18 but under 40 to save for their first home or retirement but counts as part of the pound20000 ISA limit
Individual Savings Accounts (ISAs)
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
202122 202021 Notes
Corporation Tax - all profits and gains 19 19 i
Patent box effective rate 10 10 ii
Notes i Includes gains on UK property and profits from UK property businesses realised by non-UK resident companies ii Applies to profits from qualifying patents derived from qualifying activities of the company iii From 202324 the main rate will be 25 A small profits rate of 19 will apply to profits up to pound50000 The effective rate will increase from 19 to 25 on profits between pound50000 and pound250000
202122 202021
SME enhanced deduction 130 130
SME cash credit for surrendered RampD losses 145 145
Large company above the line credit 13 13
TAXFAX 202122 11
Corporation Tax
Research amp Development (RampD) Tax Credits
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Plant and machinery 202122 202021 Notes
Annual investment allowance 100 100 i
Structures and buildings 3 3 ii
Long life assets (at least 25 years) and integral features 6 6
Other plant and machinery assets 18 18
First year allowances - plant and machinery 130 na iii
First year allowances - long life assets and integral features
50 na iii
First year allowances - RampD designated Freeport sites zero-emission goods vehicles
100 100 iv
Intangible assets
Goodwill and customer related intangibles 65 65
Other intangible assets 4 4 v
Notes i Allowance of pound1m pa for expenditure incurred on or before 31 December 2021 allowance will then reduce to pound200000 pa ii Flat rate allowance applicable to non-residential structures and buildings Where building located within a Freeport site 10 rate will apply iii First year allowances available for expenditure incurred during 202122 and 202223 tax years only iv FYAs for expenditure incurred in Enterprise Zones abolished from 2021 22 onwards v Excludes purchased goodwill and customer related intangible assets acquired after 8 July 2015 Tax deductions for accounting depreciation may be claimed instead
Capital Allowances
12 TAXFAX 202122
Cars CO2 emissions (gkm)
202122 202021
50 or less 100 100
51-110 18 18
Over 110 8 8
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
202122 202021
Standard rate 20 20
Reduced rate 5 5
VAT registration thresholds
Registration required If UK taxable turnover is
UK established businesses More than pound85000 pa
Non-UK established businesses Any amount
Deregistration is possible Less than pound83000 pa
Other VAT schemes
Eligible to use Cash Accounting Scheme Less than pound1350000 pa
Eligible to use Annual Accounting Scheme Less than pound1350000 pa
Eligible to use Flat Rate Scheme Less than pound150000 pa
Value Added Tax (VAT)
TAXFAX 202122 13
Temporary reduced rate for hospitality and tourism sector
from 15 July 2020 to 30 September
2021
5
from 1 October 2021 to 31 March
2022
125
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
SDLT chargeable on purchase of land and property in England and Northern Ireland 202122 and 202021 - different rules apply to purchases of land and property in Scotland and Wales Tax rates below charged on part of purchase price within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Residential (purchase pricepremium payable)
Rate
0 Up to pound500000
5 pound500001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
14 TAXFAX 202122
Stamp Duty Land Tax (SDLT)
Tax rates below charged on part of purchase price within each band during the second Stamp Duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 (inclusive)
Residential (purchase pricepremium payable)
Rate
0 Up to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
TAXFAX 202122 15
Tax rates below charged on part of purchase price within each band after the end of the second Stamp Duty Holiday
Residential (purchase pricepremium payable)
Rate
0 Up to pound125000
2 pound125001 to pound250000
5 pound250001 to pound925000
10 pound925001 to pound1500000
12 Over pound1500000
15 Enveloped properties over pound500000
There is a 3 supplement to residential rates for second residential property and buy-to-let property subject to exceptions From April 2021 an additional 2 supplement on non-UK residents purchasing residential property will apply subject to exceptions
Non-residentialmixed-use (purchase pricepremium payable)
Rate
0 Up to pound150000
2 pound150001 to pound250000
5 over pound250000
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Lease grants (net present value of rent)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound500000 0 Up to pound150000
1 Over pound500000 1 pound150001 to pound5000000
2 over pound5000000
16 TAXFAX 202122
Tax rates below charged on part of net present value of rent within each band during the first Stamp Duty holiday (ie for transactions completing before 1 July 2021)
Tax rates below charged on part of net present value of rent within each band after the second Stamp Duty holiday
Residential Non-residentialmixed use
Rate Rate
0 Up to pound250000 0 Up to pound150000
1 Over pound250000 1 pound150001 to pound5000000
2 over pound5000000
Tax rates below charged on part of net present value of rent within each band during the second Stamp duty holiday (ie for transactions completing between 1 July 2021 and 30 September 2021 inclusive)
Residential Non-residentialmixed use
Rate Rate
0 Up to pound125000 0 Up to pound150000
1 Over pound125000 1 pound150001 to pound5000000
2 over pound5000000
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Relief for first time buyers - switched off for transactions with an effective date before 1 July 2021 Special rates apply for a qualifying buyerrsquos first home Price paid for the home must not exceed pound500000
Rate
0 Up to pound300000
5 pound300001 to pound500000
TAXFAX 202122 17
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
ATED is an annual tax payable mainly by companies that own UK residential dwellings that are individually valued in excess of pound500000
The ATED period runs from 1 April to 31 March each year and payment is due by 30 April following the beginning of each ATED period
The ATED is chargeable at a flat rate if a property falls into a specific valuation band as follows
202122 202021
Residential property value Annual Charge
Up to pound500000 poundna poundna
pound500001 - pound1000000 pound3700 pound3700
pound1000001 - pound2000000 pound7500 pound7500
pound2000001 - pound5000000 pound25300 pound25200
pound5000001 - pound10000000 pound59100 pound58850
pound10000001 - pound20000000 pound118600 pound118050
Over pound20000000 pound237400 pound236250
Annual Tax on Enveloped Dwelling (ATED)
18 TAXFAX 202122
ATED CGT was abolished and replaced with non-resident CGT for disposals of property held by non-residents at a rate of 28
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
202122 and 202021
Employees own car Rate per mile
Annual business mileage up to 10000 miles 45p
Each additional mile over 10000 miles 25p
Each qualifying passenger 5p
Motorcycle 24p
Cycle 20p
TAXFAX 202122 19
Tax Free Mileage Rates
COVID-19 Tax Reliefs
The existing income tax and NIC exemption for COVID-19 anitigen tests paid for by employers has been extended to the end of 202122 In addition the reimbursement for of home office equipment expenses will continue to be exempt from income tax and NIC for the same period
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Class 1A employers only 138 on taxable benefits
Class 1B employers only 138 on amount in PAYE settlement agreement and
income tax thereon
Class 2 flat rate for self employed pound305 pw if earning over pound6515 pa
Class 3 voluntary pound1540 pw
Class 4 self employed 9 on profits over pound9658 to pound50270 and a further 2 on
profits above pound50270
Notes Employment allowance ndash Eligible businesses and charities can claim a reduction of up to pound4000 per annum of their employer contributions NIC incentive ndash Class 1 secondary NIC will not be due from employers with employees under the age of 25 who are following an approved UK Government statutory apprenticeship framework who earn up to pound967 per week
202122
Class 1 primary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 to pound967 12
over pound967 on excess 2
Class 1 secondary employees 202122
Total weekly earnings - contracted in up to pound184 nil
over pound184 138
20 TAXFAX 202122
National Insurance Contributions (NICs)
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
TAXFAX 202122 21
Employer NICs amp Freeports
A new Employers NIC incentive was announced in the Budget for employers with eligible employees at all Freeport tax sites Details have yet to be announced but will be effective from April 2022 until at least April 2026
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
Caroline Le JeunePartner Private Client
+44 (0)20 7544 8986 carolinelejeuneblickrothenbergcom
Genevieve MorrisPartner Corporate Tax
+44 (0)20 7544 8815 genevievemorrisblickrothenbergcom
For more information please speak to your usual Blick Rothenberg contact or contact Caroline or Genevieve using the contact details below
22 TAXFAX 202122
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg
16 Great Queen StreetCovent GardenLondon WC2B 5AH
+44 (0)20 7486 0111 emailblickrothenbergcom blickrothenbergcom
copy March 2021 Blick Rothenberg Limited All rights reserved While we have taken every care to ensure that the information in this publication is correct it has been prepared for general information purposes only for clients and contacts of Blick Rothenberg and is not intended to amount to advice on which you should rely Blick Rothenberg Audit LLP is authorised and regulated by the Financial Conduct Authority to carry on investment business and consumer credit related activity
BlickRothenberg
Blick Rothenberg