Income Tax & Tax Rates

Current tax rates and allowances.

UK excluding Scottish taxpayers’ non-dividend,
non-savings income
2019/202018/19
20% basic rate on income up to:£37,500£34,500
40% higher rate on income over:£37,500£34,500
45% additional rate on income over:£150,000£150,000

All UK taxpayers2019/202018/19
Starting rate of 0% on savings income up to**£5,000£5,000
Savings allowance at 0% tax rate:
- 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 rates on dividend income:
- Basic rate taxpayers7.5%7.5%
- Higher rate taxpayers32.5%32.5%
- Additional rate tax payers38.1%38.1%

Trusts2019/202018/19
Standard rate band generally£1,000£1,000
Rate applicable to trusts: Dividends38.1%38.1%
Other income45%45%

Non-domicile remittance basis charge2019/202018/19
After UK residence in at least 7 of the last 9 tax years£30,000£30,000
After UK residence in at least 12 of the last 14 tax years£60,000£60,000

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

Scottish income tax rates and bands

Scottish taxpayers – non-dividend, non-savings income2019/202018/19
19% starter rate on income up to£2,049£2,000
20% basic rate on slice of income up to£12,444£12,150
21% intermediate rate on next slice up to£30,930£31,580
41% higher rate on next slice up to£150,000£150,000
46% top rate on income over£150,000£150,000

 

Child Benefit Charge

High Income Child Benefit Charge1% of benefit per £100 of adjusted net income between
£50,000 and £60,000

Main Personal Allowances and Reliefs

Personal Allowance (PA)2019/202018/19
Personal (basic) *£12,500£11,850
Marriage / civil partner’s transferable allowance £1,250£1,190
Married couple’s / civil partner’s allowance
at 10% (if at least one born before 6/4/35) **
- maximum£8,915£8,695
- minimum£3,450£3,360
Blind person’s allowance£2,450£2,390
Rent-a-room relief tax-free income£7,500£7,500
Property allowance and Trading allowance (each)£1,000£1,000

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

** Reduced by £1 for every £2 of adjusted net income over £29,600 (£28,900 for 2018/19), until the minimum is reached.

 

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

Non-domicile remittance basis charge2019/202018/19
After UK residence in at least 7 of the last 9 tax years£30,000£30,000
After UK residence in at least 12 of the last 14 tax years£60,000£60,000
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