The personal allowance will rise to £12,570 for 2021/2022 and the higher rate threshold will rise to £50,270. After that, both thresholds will remain frozen until 2025/2026.
Inheritance Tax Threshold
The IHT Nil Rate Band threshold will be frozen at £325,000 until 2025/2026.
The Residential Nil Rate Band remains at £175,000 and is also frozen until 2025/2026.
Capital Gains Tax
Many people predicted an increase to capital gains tax however, no increase was made in rates of CGT. However, the CGT Annual Exemption of £12,300 for individuals (£6,150 for trusts) was frozen until 2025/2026.
Pension Lifetime allowance
The current pension lifetime allowance of £1,073,100 will remain at that level until 2025/2026.
