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  •  

    Income Tax - Tax Rates

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


    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%.

    2015-16
    Band (£) Rate Note
    The first £5,000 0% 1
    £0 - £31,785 20% 2
    Over £150,000 40% 3
    The first £5,000 45% 4

    Notes (2015-16)

    1. Only applicable to savings income.
      The 0% rate is not available if taxable non-savings income exceeds £5,000.
    2. Except dividends (10%).
    3. Except dividends (32.5%).
    4. Except dividends (37.5%).

    Dividends are grossed-up by a tax credit of 1/9.


    Click Here to download the abacus Tax Tables pdf booklet

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