Income Tax & Tax Rates

Current tax rates and allowances.

UK excluding Scotland Income Tax Rates2018/192017/18
Basic rate of 20% on income up to£34,500£33,500
Higher rate of 40% on income up to£34,500£33,500
Additional rate of 45% 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£2,000£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%
Rate applicable to trusts - dividends38.1%38.1%
Rate applicable to trusts - other income45%45%

** Not available if taxable non-savings income exceeds the starting rate band.

Scottish Income Tax Rates2018/192017/18
Starter rate on income up to£2,000N/A
Basic rate on slice of income up to£12,150£31,500
Intermediate rate on next slice up to£31,580N/A
Higher rate on next slice up to£150,00040%
Top rate on income over£150,00045%

 

Child Benefit Charge

Income2018/192017/18
1% of benefit per £100 of income between£50,000-£60,000£50,000-£60,000

Main Personal Allowances and Reliefs

Personal Allowance (PA)2018/192017/18
Personal (basic)£11,850£11,500
Personal reduced by £1 for every £2 of net income over£100,000£100,000
Married couples/civic partners' transferable allowance£1,190£1,150
Married couples'/civil partners' allowance at 10%*
(if at least one born before 6/4/35 - maximum£8,695£8,445
- minimum£3,360£3,260
Blind person’s allowance£2,390£2,320
Rent-a-room tax-free income£7,500£7,500
Property allowance and Trading allowance (each)£1,000£1,000

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

non-domicile Remittance basic charge after UK residence in at least2018/192017/18
7 of the last 9 tax years£30,000£30,000
12 of the last 14 tax year£60,000£60,000

Notes

  • Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000

  • Married couple’s allowance reduced by £1 for every £2 of adjusted net income over £28,900 (£28,000 for 2017/18), until minimum reached

  • Don’t hesitate to ask

    SBL are here to help. With accountancy advice and tax planning experts on hand to guide you and your business on the pathway to success! You can call us on 020 7580 6822, or email us on info@sblaccoutants.com or if you’d prefer you can complete our Free Online Enquiry Form and one of the team will be in touch shortly.

    Don’t hesitate to ask

    Don’t hesitate to ask section
    • This field is for validation purposes and should be left unchanged.

    By submitting my details on this form, I consent to being contacted by a member of the SBL Accountants team by email or telephone. Privacy Policy