Tax rates

Income Tax Rates and Bands

Income tax bands of taxable income (£ per year)

Tax year 2016-17 Tax year 2017-18
Basic rate £0-32,000 £0-33,500
Higher rate £32,001-150,000 £33,500-150,000
Additional rate Over £150,000 Over £150,000

Income tax rates – 2017-18

Main rates
Basic rate 20%
Higher rate 40%
Additional rate 45%
Savings rates
Starting rate for savings 0%
Savings basic rate 20%
Savings higher rate 40%
Savings additional rate 45%
Dividend rates
Dividend ordinary rate – for dividends otherwise taxable at the basic rate 7.5%
Dividend upper rate – for dividends otherwise taxable at the higher rate 32.5%
Dividend additional rate – for dividends otherwise taxable at the additional rate 38.1%
Default rates
Default basic rate 20%
Default higher rate 40%
Default additional rate 45%

Income tax allowances

Tax year 2016-17 Tax year 2017-18
Personal allowance £11,000 £11,500
Income limit for personal allowance £100,000 £100,000
Income limit for Married couple’s allowance £27,700 £28,000
Marriage allowance
Marriage allowance £1,100 £1,150
Married couple’s allowance for those born before 6 April 1935
Maximum amount of married couple’s allowance £8,355 £8,445
Minimum amount of married couple’s allowance £3,220 £3,260
Blind person’s allowance
Blind person’s allowance £2,290 £2,320
Dividend allowance
Dividend allowance £5,000 £5,000
Personal savings allowance
Personal savings allowance for basic rate taxpayers £1,000 £1,000
Personal savings allowance for higher rate taxpayers £500 £500