Income Tax & Tax Rates

Current tax rates and allowances.

Income Tax Rates2017/182016/17
Basic rate of 20% UK (excl. Scotland) on income up to£33,500£32,000
Scotland£31,500*£32,000
Higher rate of 40% UK (excl. Scotland) on income up to£33,500£32,000
Scotland£31,500*£32,000
Additional rate of 45% all UK on income over£150,000£150,000
Starting rate of 0% on savings income up to**£5,000£5,000
Savings allowance at 0% tax
Basic rate taxpayers£1,000£1,000
Higher rate taxpayers£500£500
Additional rate taxpayers£0£0
Dividend allowance at 0% tax - all individuals£5,000£5,000
Tax rate on dividends based on
Basic rate taxpayers7.5%7.5%
Higher rate taxpayers32.5%32.5%
Additional rate tax payers38.1%38.1%
Trusts: Standard rate band generally£1,000£1,000
Rate applicable to trusts - dividends38.1%38.1%
Rate applicable to trusts - other income45%45%

 

* For non-dividend, non-savings income only: otherwise UK (excl. Scotland) band applies.
** Not available if taxable non-savings income exceeds the starting rate band.

Child Benefit Charge

Income2017/182016/17
1% of benefit per £100 of income between£50,000-£60,000£50,000-£60,000

Main Personal Allowances and Reliefs

Personal Allowance (PA)2017/182016/17
Personal (basic)£11,500£11,000
Personal reduced by £1 for every £2 of net income over£100,000£100,000
Married couples/civic partners' transferable allowance£1,150£1,100
Married couples'/civil partners' allowance at 10%*
(if at least one born before 6/4/35 - maximum£8,445£8,355
- minimum£3,260£3,220
Blind person’s allowance£2,320£2,290
Rent-a-room tax-free income£7,500£7,500

Non-domicile remittance basis charge after UK residence in at least

non-domicile Remittance basic charge after UK residence in at least2017/182016/17
7 of the last 9 tax years£30,000£30,000
12 of the last 14 tax year£60,000£60,000
17 of the last 20 tax yearN/A£90,000

Notes

  • Starting rate of 0% on savings income is not available if taxible non-saving income exceeds the starting rate band.
  • Married couples allowance at 10% is reduced by £1 for every @2 of income over £28,000 (£27,700 for 2016/17), until minimum reached.
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