PART 1Income tax, corporation tax and capital gains tax
Income tax charge, rates etc
1Income tax charge for tax year 2020-21
Income tax is charged for the tax year 2020-21.
2Main rates of income tax for tax year 2020-21
For the tax year 2020-21 the main rates of income tax are as follows—
a
the basic rate is 20%,
b
the higher rate is 40%, and
c
the additional rate is 45%.
3Default and savings rates of income tax for tax year 2020-21
1
For the tax year 2020-21 the default rates of income tax are as follows—
a
the default basic rate is 20%,
b
the default higher rate is 40%, and
c
the default additional rate is 45%.
2
For the tax year 2020-21 the savings rates of income tax are as follows—
a
the savings basic rate is 20%,
b
the savings higher rate is 40%, and
c
the savings additional rate is 45%.
4Starting rate limit for savings for tax year 2020-21
Section 21 of ITA 2007 (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2020-21 (so that the starting rate limit for savings remains at £5,000 for that tax year).