If you are looking at Income Tax Rates and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and tax efficient ways to legally minimise your Income Tax.

Income Tax rates for England and Wales (and Scotland prior to 2018/19)

Rate2018/192019/202020/212021/222022/232023/24
Starting rate for savings:0%*£0 - £5,000£0-£5,000£0-£5,000£0-£5,000£0-£5,000£0-£5,000
Basic rate:20%£0 - £34,500**£0-£37,500£0-£37,500£0-£37,500£0-£37,500£0-£37,700
Higher rate:40%£34,501*** - £150,000£37,500-£150,000£37,501-£150,000£37,501-£150,000£37,700-£150,000£37,701-£125,140
Additional rate:45%Over £150,001Over £150,001Over £150,000Over £150,000Over £150,000Over £125,140
Dividend Allowance:£1,000

*Prior to 6th April 2015, this rate was 10% and applied to savings income only.

** Scottish Taxpayers only the limit is £31,500 for 2017-18

*** Scottish Taxpayers only, see separate table below for income tax rates on non-savings income. (see note 1)

For Scottish Taxpayers, the following proposed rates and bands will apply if the Scottish Budget for 2019-20 is approved by the Scottish Government.

RateBand (of earning income)
Name of band2020/212021/22
Starter rate19%Over £12,500 - £14,585Over £12,570 - £14,667
Basic rate20%Over £14,585 - £25,158Over £14,667 to £25,296
Intermediate rate21%Over £25,158 - £43,430Over £25,296 to £43,662
Higher rate41%Over £43,430 - £150,000*Over £43,662 - £150,000*
Top rate46%Above £150,000**Above £150,000**

* assumes individuals are in receipt of the Standard UK Personal Allowance.

** those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.

19/2020/2120/2121/2222/2323/24
Dividend ordinary rate - for dividends otherwise taxable at the basic rate (effective rate with tax credit)7.5%7.5%7.5%7.5%8.75%8.75%
Dividend upper rate - for dividends otherwise taxable at the higher rate (effective rate with tax credit)32.5%32.5%32.5%32.5%33.75%33.75%
Dividend additional rate - for dividends otherwise taxable at the additional rate (effective rate with tax credit)38.1%38.1%38.1%38.1%39.35%39.35%
Dividend Allowance£1,000

Please contact us for further information.