Income Tax

Bands

2018-19

2017-18

Savings starting rate - 0%*

£0 - £5,000

£0 - £5,000

Basic rate 20%

£0 - £34,500

£0 - £33,500

Higher rate 40%

£34,501 - £150,000

£33,501 - £150,000

Additional rate 45%

Over £150,000

Over £150,000

 

 

 

Scottish rates     
Starter rate 19% £0 - £2,000 -
Basic rate 20% £2,001 - £12,150 £0 - £31,500

Intermediate rate - 21%

£12,151 - £31,580

-

Higher rate - 41% (2017-18: 40%)

£31,581 - £150,000

 £31,501 - £150,000

Additional rate - 46% (2017-18: 45%)

Over £150,000

Over £150,000 

  

* Savings income is taxed at 0% up to £5,000 (2017-18: 0% up to £5,000). If an individuals
 taxable non-savings income exceeds £5,000 then the savings rate will not be available. 
 ** The Scottish Rate of Income Tax (SRIT) is payable on the non-savings and non-dividend 
 income of those defined as Scottish taxpayers.

 

Dividend allowance £2,000  £5,000
Dividend ordinary rate 7.5% 7.5%
Dividend upper rate
32.5% 32.5%
Dividend additional rate
38.1% 38.1%
Personal savings allowance
   
- basic rate taxpayers
£1,000 £1,000
- higher rate taxpayers
£500

£500

Reliefs

2018-19

2017-18

Personal allowance

 £11,850  £11,500

Registered blind person's allowance

£2,390

£2,320

Income limit for personal allowance*

£100,000

£100,000

 

* The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000. 

 

Married couple allowance - tax relief given at 10%

 

 

- Born before 6 April 1935

£8,695

£8,445

- Minimum amount*

£3,360

£3,260

- Income limit

£28,900

£28,000

- Marriage allowance*
£1,190 £1,150

 

 * A tax payer can transfer up to £1,190 of their unused personal allowance to a spouse or civil partner who is not a higher rate tax payer.  

 

High Income Child Benefit Charge* on income over

£50,000

£50,000

 

* The tax charge is levied at the rate of 1% of the full child benefit award for each £100 that income exceeds £50,000, up to a maximum of 100% of the child benefit claimed.
Taxpayers can choose whether to continue receiving child benefit and pay the tax charge or may opt out of receiving the child benefit.

There is a cap on certain Income Tax reliefs of the greater of £50,000 or 25% of income.

 

Disclaimer
In preparing and maintaining this section of our website every effort has been made to ensure the content is up to date and accurate. However, the law and regulations change continually, and unintentional errors can occur, and the information may be neither up to date nor accurate. We make no representation or warranty (including liability towards third parties), express or implied, as to the accuracy, reliability or completeness of the information on the website. Please don’t act directly on anything you read - contact us first for advice on how it may affect your individual circumstances.

 

 

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