AVRUPA TIMES/AVRUPA GAZETTE-LONDON-Arranging your financial affairs as tax-efficiently as possible before the start of the new tax year on 6 April 2022 is arguably more important than ever – particularly with rising inflation expected to put household finances under even more pressure in 2022/23.Ask yourself, have you maximised all of your tax-free allowances? Have you claimed all reliefs available?This guide will help you to answer these questions and more, with summaries of the tax rates, allowances and reliefs that apply to businesses and individuals for the remainder of 2021/22.Each section comes with a set of planning points, too, which you can use as a checklist to ensure you consider all of the key areas.
And, of course, contact us if you have any questions or want to discuss your tax planning further. Important information.The way in which tax charges (or tax relief, as appropriate) are applied depends on individual circumstances and may be subject to future change. ISA and pension eligibility depend on individual circumstances.FCA regulation applies to certain regulated activities, products and services, but does not necessarily apply to all tax-planning activities and services.This document is solely for information purposes and nothing in it is intended to constitute advice or a recommendation.While considerable care has been taken to ensure the information contained in this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information.
YEAR END TAX GUIDE 2021/22. PERSONAL ALLOWANCES & RELIEFS
The personal allowance is £12,570. Non-savings and non-dividend income above this threshold is taxed at rates from 20% to 45% (or 19% to 46% in Scotland).
A higher marginal tax rate may be payable between £100,000 and £125,140, as the personal allowance reduces by £1 for every £2 above £100,000. This means those with non-savings and savings income in this band have a marginal rate of 60% (61.5% in Scotland).
You may be able to transfer £1,260 of your unutilised personal allowance to your spouse or civil partner if you do not pay income tax, if certain conditions are met. This is known as the marriage allowance and could save you as a couple up to £252 in income tax.
Year-End Tax Guide 2021/ 22
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