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  •  

    Income Tax - Tax Rates

    Other income taxed first, then savings income and finally dividend.

  • Go to ...
  • 2017-18 tax thresholds
  • Trade Allowance
  • Property Allowance
  • 2016-17 tax thresholds
  •  


    2017-18

    Band (£) Other Income Savings Dividends
    £0 - £5,000 (note 1) - 0% -
    £0 - £1,000 (note 2) - 0% -
    £0 - £500 (note 3) - 0% -
    £0 - £5,000 (note 4) - - 0%
    £1,001 - £33,500 - 20% -
    £501 - £33,500 - 20% -
    £0 - £33,500 20% - -
    £5,001 - £33,500 - - 7.5%
    £33,501 - £150,000 40% 40% 32.5%
    Over £150,000 45% 45% 38.1%

    Scottish Basic Rate Threshold (Introduced in 2017-18)

    Whilst the tax rates are the same in Scotland as the rest of the UK the basic rate threshold is different as set out below:

    Band (£) Other Income Savings Dividends
    £0 - £5,000 (note 1) - 0% -
    £0 - £1,000 (note 2) - 0% -
    £0 - £500 (note 3) - 0% -
    £0 - £5,000 (note 4) - - 0%
    £1,001 - £31,500 - 20% -
    £501 - £31,500 - 20% -
    £0 - £31,500 20% - -
    £5,001 - £31,500 - - 7.5%
    £31,501 - £150,000 40% 40% 32.5%
    Over £150,000 45% 45% 38.1%

    Notes (2017-18)

    1. From 2008-09 there is a starting rule for savings income only. If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate for savings will not be available for savings income.
    2. From April 2017, the new Personal Savings Allowance means that basic rate income tax payers will not have to pay tax on the first £1,000 of savings they receive.
    3. Higher rate tax payers will not have to pay tax on the first £500 of savings income.
    4. From 2016-17, dividends will no longer be grossed up to determine the taxable dividend. Also, the non-repayable tax credit equal to 10% of the grossed-up figure no longer applies. Instead the first £5,000 (£5,000 in 2016-17) of dividend income is taxed at 0%.

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    Trade Allowance (Introduced in 2017-18)

    Income up to £1,000 Profits assessable as Nil do not have to be declared to HMRC
    Income over £1,000 Election to deduct £1,000 allowance from income instead of the actual expenses

    Notes

    1. Individuals with small amounts of trading income less than £1,000 will no longer have to tell HMRC about the income or pay tax on it.
    2. If trading income does exceed £1,000 the individual can elect to either calculate profit in the normal way (i.e. offset actual expenses) or simply elect to deduct the £1,000 allowance.
    3. This allowance does not apply to rent a room income.

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    Property Allowance (Introduced in 2017-18)

    Income up to £1,000 Profits assessable as Nil do not have to be declared to HMRC
    Income over £1,000 Election to deduct £1,000 allowance from income instead of the actual expenses

    Notes

    1. Individuals with small amounts of property income less than £1,000 will no longer have to tell HMRC about the income or pay tax on it.
    2. If property income does exceed £1,000 the individual can elect to either calculate profit in the normal way (i.e. offset actual expenses) or simply elect to deduct the £1,000 allowance.
    3. This allowance does not apply to rent-a-room income.

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    2016-17

    Band (£) Other Income Savings Dividends
    £0 - £5,000 (note 1) - 0% -
    £0 - £1,000 (note 2) - 0% -
    £0 - £500 (note 3) - 0% -
    £0 - £5,000 (note 4) - - 0%
    £1,001 - £32,000 - 20% -
    £501 - £32,000 - 20% -
    £0 - £32,000 20% - -
    £5,001 - £32,000 - - 7.5%
    £32,001 - £150,000 40% 40% 32.5%
    Over £150,000 45% 45% 38.1%

    Notes (2016-17)

    1. From 2008-09 there is a starting rule for savings income only.
      If an individual's taxable non-savings income exceeds the starting rate limit, then the starting rate for savings will not be available for savings income.
    2. From April 2016 the new Personal Savings Allowance means that basic rate income tax payers will not have to pay tax on the first £1,000 of savings they receive.
    3. Higher rate tax payers will not have to pay tax on the first £500 of savings income.
    4. From 2016-17 dividends will no longer be grossed up to determine the taxable dividend. Also the 10% non-repayable tax credit equal to 10% no longer applies.
      The first £500 of dividend income is taxed at 0%.

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    Click Here to download the current tax year's abacus Tax Tables pdf booklet

    Click Here to download the previous tax year's abacus Tax Tables pdf booklet

     

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