Finance Act 2020 (c. 14)

PART 1 U.K. Income tax, corporation tax and capital gains tax

Income tax charge, rates etc U.K.

1 Income tax charge for tax year 2020-21 U.K.

Income tax is charged for the tax year 2020-21.

2 Main rates of income tax for tax year 2020-21 U.K.

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%.

3 Default and savings rates of income tax for tax year 2020-21 U.K.

(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%.

4 Starting rate limit for savings for tax year 2020-21 U.K.

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).