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* The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000.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

£8,455

£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. 

 


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