Budget Report 2021: Income Tax and Personal Savings

The Chancellor announced the following income tax rates and allowances.

Income tax rates and bands

Income tax rates in Scotland and Wales on income other than savings and dividend income have been devolved.

Savings income

A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.

Dividend income

Personal allowances

Scottish income tax rates and bands

Savings and dividend income are taxed using UK rates and bands.

Welsh income tax rates

Although income tax for Wales has been devolved, Welsh resident taxpayers continue to pay the same overall rates as taxpayers in England and Northern Ireland.