Income tax rates
|Starting rate limit (savings income)||*£5,000||*£5,000|
|Basic rate band - income up to||**£33,500||£32,000|
|Dividend ordinary rate||***7.5%||***7.5%|
|Higher rate - income over||**£33,500||£32,000|
|Dividend upper rate||***32.5%||***32.5%|
|Additional rate - income over||£150,000||£150,000|
|Dividend additional rate||***38.1%||***38.1%|
* If an individual's taxable non-savings income exceeds the starting rate limit, then the starting rate will not be available for savings income. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free.
** For Scottish taxpayers only the limit is £31,500.
*** The first £5,000 of dividends are tax-free
|Personal allowance (PA)|
|Blind person's allowance||£2,320||£2,290|
|Married couple's allowance (MCA)|
|Either partner born before 6 April 1935 (relief restricted to 10%)||2||£8,445||£8,355|
|Transferable tax allowance ('Marriage Allowance')|
|For certain married couples and civil partners born after 5 April 1935 (relief 20%)||3||£1,150||£1,100|
|Venture Capital Trust (VCT) up to||£200,000||£200,000|
|Enterprise Investment Scheme (EIS) up to||£1,000,000||£1,000,000|
|Seed Enterprise Investment Scheme up to||£100,000||£100,000|
|Social Investment Tax Relief||£1,000,000||£1,000,000|
- Where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil regardless of the individual's date of birth.
- Allowances are reduced by £1 for every £2 that adjusted net income exceeds £28,000 (£27,700 2016/17) to a minimum MCA of £3,260 (£3,220 2016/17).
- Available to spouses/civil partners born after 5 April 1935, the allowance is 10% of the standard personal allowance. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/civil partner. The recipient must not be liable to tax above the basic rate. Relief is given as a tax reduction at 20% of the transferred amount.