Income Tax

Rates 16/17 17/18
Basic rate of 20% on income up to:    
        - UK (excl. Scotland) £32,000 £33,500
        - Scotland £32,000 £31,500*
Higher rate of 40% on income over:    
        - UK (excl. Scotland) £32,000 £33,500
        - Scotland £32,000 £31,500*
Additional rate of 45% on income over: all UK £150,000 £150,000
Starting rate of 0% on savings income up to** £5,000 £5,000
Savings allowance at 0% tax    
       - Basic rate taxpayers £1,000 £1,000
       - Higher rate taxpayers £500 £500
       - Additional rate taxpayers £0 £0
Dividend allowance at 0% tax – all individuals £5,000 £5,000
Tax rate on dividend income    
       - Basic rate taxpayers 7.5% 7.5%
       - Higher rate taxpayers 32.5% 32.5%
       - Additional rate taxpayers 38.1% 38.1%
Trusts: Standard rate band generally £1,000 £1,000
Rate applicable to trusts:    
       - Dividends 38.1% 38.1%
       - Other income 45% 45%
* For non-dividend, non-savings income only: otherwise UK (excl. Scotland) band applies

**Not available if taxable non-savings income exceeds the starting rate band.
   
Child Benefit Charge: 1% of benefit per £100 of income between £50,000 and £60,000

 

 

 

© Copyright 8 March 2017, subject to Finance Act 2017. For information only.
Always seek professional advice before acting.