Income tax rates – across the UK
- Income tax applies to the amount of income after deduction of personal allowances.
- Income is taxed in a specific order with savings and dividend income taxed last.
- Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
- The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
- The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
- Income tax is devolved to Wales on non-savings and non-dividend income.
Income tax rates
|
Band of taxable income |
Rate |
Rate if dividends |
|
|---|---|---|---|
| £ | % | % | |
| 0 – 37,700 | Basic rate | 20 | 10.75 |
| 37,701 – 125,140 | Higher rate | 40 | 35.75 |
| Over 125,140 | Additional rate | 45 | 39.35 |
|
Special rates for savings and dividend income falling into above bands of taxable income |
|||
|
Savings Allowance |
|||
| Basic rate taxpayers | 1,000 | 0 | |
| Higher rate taxpayers | 500 | 0 | |
| Additional rate taxpayers | Nil | N/A | |
|
Dividend Allowance |
|||
| for all taxpayers | 500 | 0 | |