UK Income Tax and Allowances
How much Income Tax someone pays in each tax year (from 6 April to the 5 April the following year) depends on:
- how much of their taxable income is above their Personal Allowance
- how much of this falls within each tax band
Personal Allowances
The Personal Allowance is the amount of income a person can get before they pay tax.
Allowances | 2019 to 2020 | 2018 to 2019 | 2017 to 2018 | 2016 to 2017 |
---|---|---|---|---|
Personal Allowance | £12,500 | £11,850 | £11,500 | £11,000 |
Income limit for Personal Allowance | £100,000 | £100,000 | £100,000 | £100,000 |
The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.
Other allowances
Allowances | 2019 to 2020 | 2018 to 2019 | 2017 to 2018 | 2016 to 2017 |
---|---|---|---|---|
Married Couple’s Allowance - maximum amount | £8,915 | £8,695 | £8,445 | £8,355 |
Married Couple’s Allowance - minimum amount | £3,450 | £3,360 | £3,260 | £3,220 |
Blind Person’s Allowance | £2,450 | £2,390 | £2,320 | £2,290 |
Tax rates and bands - UK (excluding Scotland)
Tax is paid on the amount of taxable income remaining after allowances have been deducted. Different rates apply for Scotland.
Band | Rate | Income after allowances 2019 to 2020 | Income after allowances 2018 to 2019 | Income after allowances 2017 to 2018 | Income after allowances 2016 to 2017 |
---|---|---|---|---|---|
10% (0% from 2015 to 2016) |
Up to £5,000 | Up to £5,000 | Up to £5,000 | Up to £5,000 | |
Basic rate in UK |
20% | Up to £37,500 | Up to £34,500 | Up to £33,500 | Up to £32,000 |
Higher rate |
40% | £37,501 to £150,000 | £34,501 to £150,000 | £33,501 to £150,000 | £32,001 to £150,000 |
Additional rate |
45% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
Tax rates and bands - Scotland
Tax is paid on the amount of taxable income remaining after allowances have been deducted. Different rates apply for the rest of the UK.
Band | Rate | Income after allowances 2019 to 2020 | Income after allowances 2018 to 2019 | Income after allowances 2017 to 2018 | Income after allowances 2016 to 2017 |
---|---|---|---|---|---|
Starter rate in Scotland |
19% | Up to £2,049 | Up to £2,000 | - | - |
Basic rate in Scotland |
20% | £2,050 to £12,444 | £2,001 to £12,150 | Up to £31,500 | Up to £32,000 |
Intermediate rate in Scotland |
21% | £12,445 to £30,930 | £12,151 to £31,580 | - | - |
Higher rate in Scotland | 40% (41% from 2018 to 2019) |
£30,931 to £150,000 | £31,581 to £150,000 | £31,501 to £150,000 | £32,001 to £150,000 |
Top rate in Scotland |
46% | Over £150,000 | Over £150,000 | - | - |
Dividends - 6 April 2018 to 5 April 2019
The following rates for tax on dividends apply from 6 April 2017 to 5 April 2018.
The first £2,000 of dividend income is tax free, regardless of the level of non-dividend income.
Band | Dividend tax rates |
---|---|
Basic rate (and non-taxpayers) | 7.5% |
Higher rate | 32.5% |
Additional rate | 38.1% |
Dividends - 6 April 2016 to 5 April 2020
The following rates for tax on dividends apply from 6 April 2016 to 5 April 2020.
The first £2,000 of dividend income is tax free(between 6 April 2018 to 5 April 2020), regardless of the level of non-dividend income.
The first £5,000 of dividend income is tax free(between 6 April 2016 to 5 April 2018), regardless of the level of non-dividend income.
Band | Dividend tax rates |
---|---|
Basic rate (and non-taxpayers) | 7.5% |
Higher rate | 32.5% |
Additional rate | 38.1% |
Dividends - 6 April 2010 to 5 April 2016
The following rates for tax on dividends apply from 6 April 2010 to 5 April 2016.
Add your other taxable income to your dividends to work out the band they’re in. You may pay tax at more than one rate.
Band | Dividend tax rates |
---|---|
Basic rate (and non-taxpayers) | 0% |
Higher rate | 25.0% |
Additional rate (from 6 April 2013) | 30.56% |
Additional rate (dividends paid before 6 April 2013) | 36.11% |