Income tax rates

(other than divided incomes)

2018-19

Band £ Rate %
0 – 34,500 20
34,501 – 150,000 40
Over 150,000 45

2017-18

Band £ Rate %
0 – 33,500 20
33,501 – 150,000 40
Over 150,000 45

Scotland Income tax rates

(savings and dividend income are taxed using UK rates and bands)

2018-19

Band £ Rate %
0 – 2,000 19
2001 – 12,150 20
12,151 – 31,580 21
31,581 – 150,000 41
Over 150,000 46

2017-18

Band £ Rate %
0 – 31,500 20
31,501 – 150,000 40
Over 150,000 45
Savings Income 2018-19 and 2017-18
Starting rate for savings 0%
Starting rate limit for savings £5,000
Not available if the taxable income exceeds the starting rate band.  £1000 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 £2000 of dividends are tax free (£5000 for 2017/18).
2018-19 2017-18
Personal allowance (PA) £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 Marraige allowance.
Marriage allowance £1,190 £1,150
Married couple’s allowance (MCA) (relief 10%) £8,695 £8,445
Either partner born before 6 April 1935 – min. amount £3,360 £3,260
Reduce MCA by £1 for every £2 of adjusted net income over £28,900 (£28,00).
Tax-Free Savings Accounts for 2018-19
ISA subscription limit £20,000; Junior ISA and CTF subscription limit £4,260.