In 2020 to 2021, this measure will benefit 30.7 million individuals, of whom 26.1 million will be basic rate taxpayers and 4.1 million higher rate taxpayers. Your financial adviser will guide you through the process of choosing and setting up a trust, but here is some handy information to get you started. This measure will set the Personal Allowance at £12,500, and the basic rate limit at £37,500 for 2020 to 2021. The impact analysis that follows relates specifically to the impact of the legislative provisions outlined above. From this measure, 2019 to 2020 estimated impacts by gender are: From this measure, 2019 to 2020 estimated impacts by age are: From this measure, 2020 to 2021 estimated impacts by gender are: From this measure, 2020 to 2021 estimated impacts by age are: Impacts on administrative and compliance cost for businesses, employers, pension providers or civil society organisations will be negligible. Don’t include personal or financial information like your National Insurance number or credit card details. We use cookies to collect information about how you use GOV.UK. We use this information to make the website work as well as possible and improve government services. We need to know a little bit more about you, Tapered Annual Allowance calculator - 2016/17 to 2019/20, Access the Tapered Annual Allowance calculator - 2016/17 to 2019/20. All content is available under the Open Government Licence v3.0, except where otherwise stated, National restrictions in England from 5 November, Income Tax Personal Allowance and basic rate limit from 2019 to 2020, nationalarchives.gov.uk/doc/open-government-licence/version/3, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, 30.6 million individuals will benefit - of these, 17.8 million (58%) are male and 12.8 million (42%) are female, 499,000 individuals will be taken out of tax - of these, 219,000 (44%) are male and 280,000 (56%) are female, 479,000 individuals will be taken out of the higher rate of tax - of these, 333,000 (70%) are male and 145,000 (30%) are female, 625,000 individuals lose, of which 393,000 (63%) are male and 233,000 (37%) are female, 30.6 million individuals will benefit - of these, 24.5 million (80%) are below State Pension age and 6.0 million (20%) are above State Pension age, 499,000 individuals will be taken out of tax - of these, 331,000 (66%) are below State Pension age and 168,000 (34%) are above State Pension age, 479,000 individuals will be taken out of the higher rate of tax - of these, 420,000 (88%) are below State Pension age and 58,900 (12%) are above State Pension age, 625,000 individuals lose, of which the majority are below State Pension age, 30.7 million individuals will benefit - of these, 17.9 million (58%) are male and 12.8 million (42%) are female, 148,000 individuals will be taken out of tax - of these, 65,100 (44%) are male and 82,600 (56%) are female, 314,000 individuals will be taken out of the higher rate of tax - of these, 221,000 (70%) are male and 93,800 (30%) are female, 901,000 individuals lose, of which 562,000 (62%) are male and 339,000 (38%) are female, 30.7 million individuals will benefit - of these, 24.6 million (80%) are below State Pension age and 6.1 million (20%) are above State Pension age, 148,000 individuals will be taken out of tax - of these, 105,000 (71%) are below State Pension age and 43,200 (29%) are above State Pension age, 314,000 individuals will be taken out of the higher rate of tax - of these, 277,000 (88%) are below State Pension age and 37,900 (12%) are above State Pension age, 901,000 individuals lose, of which the majority are below State Pension age. Find out more about why you should choose to invest with us and how we can help you reach your financial goals. Cumulative changes to the Personal Allowance and higher rate threshold since 2010 to 2011 mean a typical basic rate taxpayer will have an overall cash gain of £1,205 in 2020 to 2021. This meets the government’s objective one year early. The table below sets out the thresholds to include the changes from this measure. You’ve accepted all cookies. Access a wealth of resources, including investment deadlines, investment rates and up-to-date fund information to help explain your investments. 22 May 2019 This stand-alone calculator will determine the level of tapered annual allowance applicable to the client. The page you were trying to view is not available for your role. FOR FINANCIAL ADVISERS ONLY. Increases to the Personal Allowance and basic rate limit are indexed with CPI. Access our Fund Centre for fund prices, performance, charges and documents such as Key Investor Information Documents (KIIDs) across all our fund ranges. This stand-alone calculator will determine the level of tapered annual allowance applicable to the client. All taxpayers with income of £125,000 or above in both years have their Personal Allowance tapered to zero. The allowance is tapered to £10,000 for those with an ‘adjusted income’ of between £150,000 and £210,000. The Tapered Annual Allowance (TAA) The Tapered Annual Allowance (TAA) came into force as of 6 April 2016 for high earners. Actual gains for individual taxpayers will vary according to individual circumstances. For the 2019/20 tax year, the lifetime allowance is £1,073,100. This can be used for tax year 2016/17 to 2019/20. Visit our live support hub for useful information and guides to support you through turbulent markets. A higher rate taxpayer will have an average real gain of £387. Overall employment outcomes will also depend upon other measures announced as well as aggregate labour demand and the performance of the wider economy. Access a wide range of award-winning products and services to help you meet your financial goals. This might feed through to higher consumption or savings in the household sector. A typical higher rate taxpayer will have an overall cash gain of £1,142 and a real terms gain of £694. It will take only 2 minutes to fill in. The figures for these measures are set out in Table 2.1 of Budget 2018 as ‘Personal Allowance and Higher Rate Threshold: increase to £12,500 and £50,000 in 2019-20 … The taper worked by operating a £1 reduction in the annual allowance for every £2 of adjusted income above £150,000, subject to a minimum annual allowance of £10,000. It is important to know these limits when … 148,000 fewer individuals are expected to pay Income Tax, and 314,000 fewer are expected to pay higher rate Income Tax, in 2020 to 2021 compared to previously announced policy. For every £2 of ‘adjusted income’ above £150,000 p.a. The tapered annual allowance calculations will now not affect anyone with a Threshold Income level below £200,000. A basic rate taxpayer will have an average gain of £20. Cumulative changes to the Personal Allowance and higher rate threshold between 2015 to 2016 and 2020 to 2021 mean a typical basic rate taxpayer will have an overall cash gain of £380 and a real terms gain of £190. If you wish to do a full calculation including maximum contributions and carry forward, please use our Maximum Contribution Calculator. The basic rate limit will be increased to £37,500 for 2019 to 2020. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk. Don’t worry we won’t send you spam or share your email address with anyone. As a result, the higher rate threshold will be £50,000 in 2019 to 2020. The measure will have effect on and after 6 April 2019. This measure is not expected to impact on family formation, stability or breakdown. HMRC and HM Treasury will seek to assess the cumulative labour market effects of Personal Allowance increases in the context of other relevant tax and benefit changes. The higher rate threshold will be £50,000 in 2020 to 2021. This change will be administered as part of the regular uprating process and will cost around £50,000. Individuals also have a lifetime allowance against which the total value of the benefits built up in pension funds (including investment growth) will be tested. Any changes to individuals’ tax codes are a routine annual event for employers and pension providers. A higher rate taxpayer will have an average real gain of £228. The government has an objective to raise the Personal Allowance to £12,500, and the higher rate threshold to £50,000 by 2020 to 2021. Changes to the basic rate limit will apply to non-savings and non-dividend income in England, Wales and Northern Ireland and to savings and dividend income in the UK. The threshold income has increased to £200,000 and the adjusted income has increased to £240,000.