Income Tax and Personal Savings
Income tax rates and bands
|Band £||Rate %||Band £||Rate %|
|0 - 37,500||20||0 - 34,500||20|
|37,501 - 150,000||40||34,501 - 150,000||40|
|Over 150,000||45||Over 150,000||45|
|Savings allowance basic rate||£1,000||£1,000|
|Savings allowance higher rate||£500||£500|
A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.
|Dividend ordinary rate||7.5%||7.5%|
|Dividend upper rate||32.5%||32.5%|
|Dividend additional rate||38.1%||38.1%|
|Personal Allowance (PA)||£12,500||£11,850|
|Personal allowance income limit||£100,000||£100,000|
Transferable between certain spouses where neither pay tax above the basic rate
Married couple’s allowance (MCA)
(relief given at 10%)
Either partner born before 6 April 1935
- minimum amount
- income limit
|Blind person's allowance||£2,450||£2,390|
Scottish income tax rates and bands
Savings and dividend income are taxed using UK rates and bands.
|Rates and bands for 2019/20 will be announced in the Scottish Budget||Band £||Rate %|
|0 - 2,000||19|
|2,001 - 12,150||20|
|12,151 - 31,580||21|
|31,581 - 150,000||41|
Welsh income tax rates
From 6 April 2019, the UK government will reduce the basic, higher and additional rates of income tax paid by Welsh taxpayers by 10%, and three Welsh rates of income tax will then be added to the reduced UK rates. The Welsh government proposes to set the first Welsh rates at 10%.
Individual Savings Accounts (ISAs)
Individuals can invest in any combination of cash or stocks and shares up to the overall annual ISA subscription limit. However, a saver may only pay into a maximum of one Cash ISA, one Stocks and Shares ISA, one Innovative Finance ISA and one Lifetime ISA. The overall investment limit for 2019/20 is £20,000 (£4,368 for junior accounts).