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