How much income can you receive before paying tax
- 2019/20 – £12,500
- 2020/21 – £12,500
- you start to lose this allowance when annual income exceeds £100,000
How much income can you receive before paying higher rate tax (40%)?
- 2019/20 – £50,000
- 2020/21 – £50,000
ISA contribution limits
- The annual ISA limit will be £20,000 for 2020/21 (currently £20,000)
- The Junior ISA annual limit will rise to £9,000 in 2020/21 (currently £4,368)
Capital Gains Tax (CGT)
- The Annual Exempt Amount of CGT for individuals will rise to £12,300 for the 2020/21 tax year (currently £12,000).
- The lifetime allowance for pensions will increase to £1,073,000 in 2020/21.
- The annual allowance for pensions remains at £40,000 in 2020/21. (see below)
- The “Threshold Income”, before annual pension allowance starts to reduce is increased from £110,000 to stand at £200,000. “Adjusted Income” increases from £150,000 to £240,000. The highest possible annual allowance reduction is now £4,000 instead of £10,000
This blog is intended as information only and does not constitute advice in any way. The information contained herein could be wrong or may have changed by the time you read it so should not be relied upon in any way.