X

Which Tax Allowances Changed for 2021/22?

Due to the current economic situation the planned changes to some allowances for 2021/22 have not happened or have been slightly revised. So which tax allowances have changed for this year?

Not many allowances have changed this year and those that have changed have only done so by a small amount.

Capital Gains Tax (CGT), Inheritance Tax (IHT), the annual ISA Allowance and the Personal Savings Allowance are examples of some tax allowances that have not changed between 2020/21 and 2021/22.

You can see all of the current rates, including the rates from previous years, on the allowances page here.

The two main tax rates that have changed are the personal allowance and the personal tax rates (although these are intrinsically linked so could be counted as one).

The personal allowance has increased to £12,570 from £12,500 – so only a small increase – and the higher rate tax bracket now starts at £50,270 instead of £50,000.

Some allowances are also set to be frozen until 2026 so that some of the debt that has been built up over the last year can be recouped. Therefore, as people earn more, they may find that they are paying more tax.

It may be a while until we see a sustained increase in tax allowances.

 

Categories: Tax Allowances
Marian: Marian worked in pensions/finance for 12 years including gaining the Associateship of the Pensions Management Institute. She has a keen interest in finance, taxation and property and spends time reasearching and writing articles on these topics.
Related Post