Events from the year 1681 in the Kingdom of England.
- 18 January – 'Exclusion Bill Parliament' dissolved.
- 4 March – William Penn receives a royal charter to establish a sectarian colony in the Americas.
- 21 March–28 March – the Oxford Parliament meets and debates the Exclusion Bill. The Bill is rejected by the House of Lords.
- 1 July – Oliver Plunkett, Roman Catholic Archbishop of Armagh and Primate of All Ireland, falsely convicted of treason, is hanged, drawn and quartered at Tyburn, London, the last Catholic martyr to die in England. Catholic intriguer Edward Fitzharris is executed on the same day.
- 2 July – Anthony Ashley-Cooper, 1st Earl of Shaftesbury charged with treason, and imprisoned in the Tower of London, but subsequently acquitted.
- 31 August – Protestant activist Stephen College, convicted of treason, is hanged, drawn and quartered in Oxford.
- 22 December – King Charles II issues a warrant for the building of the Royal Hospital Chelsea for wounded and retired soldiers.
- 28 January – Richard Allestree, royalist churchman (born c. 1621)
- 5 March – Sir Jonathan Trelawny, 2nd Baronet, Member of Parliament (born c. 1623)
- 14 April – Sir Thomas Littleton, 2nd Baronet, Member of Parliament (born c. 1621)
- 18 April – John Loosemore, pipe organ builder (born 1616)
- 9 June – William Lilly, astrologer and occultist (born 1602)
- 15 December – James Compton, 3rd Earl of Northampton, soldier and politician (born 1622)
- 22 December – Richard Alleine, Puritan clergyman (born 1611)
- Hezekiah Burton, theologian (born 1632)
- Elizabeth Knepp, actress (year of birth unknown)
- William Walwyn, Leveller (born c. 1600)
- John Watling, buccaneer (year of birth unknown)