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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.
BAND OF TAXABLE INCOMERATERATE IF DIVIDENDS
£%%
0 – 37,700Basic rate208.75
37,701 – 125,140Higher rate4033.75
Over 125,140Additional rate4539.35
Special rates for savings and dividend income falling into above bands of taxable income
Savings Allowance
Basic rate taxpayers1,0000
Higher rate taxpayers5000
Additional rate taxpayersNilN/A
Dividend Allowance
for all taxpayers1,0000