Income Tax
Income tax rates (other than savings and dividend income)
| 2018/19 | 2017/18 | ||
|---|---|---|---|
| Band £ | Rate % | Band £ | Rate % |
| 0 - 34,500 | 20 | 0 - 33,500 | 20 |
| 34,501 - 150,000 | 40 | 33,501 - 150,000 | 40 |
| Over 150,000 | 45 | Over 150,000 | 45 |
Scotland income tax rates (savings and dividend income are taxed using UK rates and bands)
| 2018/19 | 2017/18 | ||
|---|---|---|---|
| Band £ | Rate % | Band £ | Rate % |
| 0 - 2,000 | 19 | 0 - 31,500 | 20 |
| 2,001 - 12,150 | 20 | 31,501 - 150,000 | 40 |
| 12,150 - 31,580 | 21 | Over 150,000 | 45 |
| 31,581 – 150,000 | 41 | ||
| Over 150,000 | 46 | ||
| Savings income | 2018/19 and 2017/18 |
|---|---|
| Starting rate for savings | 0% |
| Starting rate limit for savings | £5,000 |
Not available if the taxable non-savings income exceeds the starting rate band. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax free.
| Dividend income | 2018/19 and 2017/18 |
|---|---|
| Dividend ordinary rate | 7.5% |
| Dividend upper rate | 32.5% |
| Dividend additional rate | 38.1% |
The first £2,000 (£5,000 2017/18) of dividends are tax free.
Personal allowance (PA)
| 2018/19 | 2017/18 | |
|---|---|---|
| Personal allowance | £11,850 | £11,500 |
| (Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) 10% of the PA may be transferable between certain spouses where neither pay tax above the basic rate, known as the marriage allowance. |
||
| Marriage allowance | £1,190 | £1,150 |
| Married couple’s allowance (MCA) (relief 10%) (Either partner born before 6 April 1935.) Min amount |
£8,695 £3,360 |
£8,445 £3,260 |
| (Reduce MCA by £1 for every £2 of adjusted net income over £28,900 (£28,000 2017/18). | ||
| Blind person’s allowance | £2,390 | £2,320 |