The Income Tax (Indexation) Order, SI 2021/111, formally sets out the indexed income tax limits and allowances for the tax year 2021/22. The Order sets:
the basic rate limit to £37,700;
the personal allowance is increased to £12,570;
the blind person’s allowance to £2,520;
the minimum amount for tax reductions for married couples and civil partners to £3,530;
the amount by which the married couple’s allowance is calculated to £9,125;
the adjusted net income limit for the married couple’s allowance to £30,400.
Noe that these indexation provisions can be overridden by a Finance Act, as has happened in previous years when, for example, the personal allowance was increased by more than inflation. However, in its 2020 Spending Review(at para 2.8), the government suggesting that the figures in the Order will indeed be carried forward (and not disapplied). The 2021/22 income tax rates and allowances are likely to be confirmed in the March Budget.
The Income Tax (Indexation) Order, SI 2021/111, formally sets out the indexed income tax limits and allowances for the tax year 2021/22. The Order sets:
the basic rate limit to £37,700;
the personal allowance is increased to £12,570;
the blind person’s allowance to £2,520;
the minimum amount for tax reductions for married couples and civil partners to £3,530;
the amount by which the married couple’s allowance is calculated to £9,125;
the adjusted net income limit for the married couple’s allowance to £30,400.
Noe that these indexation provisions can be overridden by a Finance Act, as has happened in previous years when, for example, the personal allowance was increased by more than inflation. However, in its 2020 Spending Review(at para 2.8), the government suggesting that the figures in the Order will indeed be carried forward (and not disapplied). The 2021/22 income tax rates and allowances are likely to be confirmed in the March Budget.
