Lower Rate Band (formerly Lower Rate Relief)
2018/19 rUK 2019/20 rUK
20
46,350
40
46,350
45
150,000
20 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS 50,000 40 50,000 45 150,000 2020/21 20 50,000 40 50,000 45 150,000 2021/22 20 50,270 40 50,270 45 150,000 ¹This includes the taxpayers personal allowance, currently £12,500 N.B.The Scottish rates and thresholds can be found now under the section “Scottish Income Tax”. N.B. • 7th September 2008 the higher rate threshold was revised with retrospective effect to offset the increased basic personal allowance introduced at that time. These steps were taken to restore (in part) the unforeseen effects on certain tax payers following the abolition of the 10% (lower rate) tax band on the 6th April 2008. The September change was not intended to benefit those paying tax at the higher rate hence the amendment to the threshold. This principle, of making changes to the personal allowance benefit only those on the basic rate of Income Tax, was brought back in 2011/12 and has continued since. • In 2013/14 the increase in the personal allowance was only partly clawed back in a reduced basic rate threshold. • In April 2015 almost all of the personal allowance was applied to all taxpayers. • In April 2016 the Scottish Rate of Income Tax of 10% was applied splitting the total tax liability in Scotland into two rates. • From April 2017 the Scottish rate of Income Tax remained at 10% but the higher rate threshold was frozen at £43,000. • From April 2018 all Scottish rates and thresholds form part of a unique table to cover the extensive changes made. LOWER RATE BAND (formerly Lower Rate Relief) From 6th April 1994 to 5th April 2008, the basic rate tables (Table B) as issued by HMRC provided for calculation at basic rate only. No printing, copying or reproduction permitted. As the lower rate band was dealt with as a banding within the basic rate band, in order to adjust the over-deduction of tax that would otherwise occur, ‘Table B Subtraction Tables’ were therefore provided for use in conjunction with Table B. An adjustment was required to make allowance for earnings within the lower rate band at the differential between the lower and basic rates.
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