November 2021 Budget

Main message to come from this budget is that the majority of tax rates and allowances have been frozen until 2025/26.  These include:

Income Tax

Personal allowance remains at £12,570 – (tax code of 1257L)

Higher rate threshold stays at £50,270 (England & Wales) – Scotland’s update takes place on 9th December 2021.

Capital Gains Tax

Remains at £12,300.

Inheritance Tax

Nil Rate Band remains at £325,000.

Residence Nil Rate Band remains at £175,000.

Pension Lifetime Allowance

Will remain at £1,073,100.

Other key announcements:

ISA Allowances

Remain the same at £20,000 for adults and £9,000 for Junior ISAs.


Tax on dividends is to increase by 1.25% from 6th April 2022.

National Insurance

The increase of 1.25% had already been reported in the press, and was confirmed in the Budget, effective from 6th April 2022.  This effects employees, employers and the self-employed.

Corporation Tax

Set to rise to 25% from April 2023.

Small companies with profits below £50,000 will stay at 19%.

Re-introduction of tapering relief for business with profits under £250,000.

Pension for Low Earners

Individuals that do not pay tax as they have earnings below the personal allowance (currently £12,570) lose out on tax relief when making payments to their pensions.  HMRC are to identify these individuals and they will become entitled to a top up from 2025/26.

State Pension

Is to increase by 3.1% from 6th April 2022.