Income tax 2018-19

Income tax rates (other than dividend income)

2018-19 2017-18
Band £ Rate % Band £ Rate %
0 – 34,500 20 0 – 33,500 20
34,501 – 150,000 40 33,501 – 150,000 40
Over 150,000 45 Over 150,000 45

Scottish taxpayers are subject to different tax rates and bands on non-savings and non-dividend income.

 

Savings income 

2018-19 and 2017-18
Starting rate for savings 0%
Starting rate limit for savings £5,000

Not available if the taxable non-savings income exceeds the starting rate band. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) maybe tax free.

 

Dividend income

2018-19 and 2017-18
Dividend ordinary rate 7.5%
Dividend upper rate 32.5%
Dividend additional rate 38.1%

The first £2,000 of dividends are tax free (£5000 for 2017/18)

 

2018-19 2017-18
Personal allowance (PA) £11,850 £11,500

(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,00.) 10% of the PA may be transferable between certain spouses where neither pay tax above the basic rate, known as Marriage allowance.

Marriage allowance £1,190 £1,150
Married couple’s allowance (MCA)
(relief 10%)
£8,695 £8,445
(Either partner born before 6 April 1935.)
-min. amount £3,360 £3,260
Reduce MCA by £1 for every £2 of adjusted net income over £28,900 (£28,000)
Tax-Free Savings Accounts for 2018-19
ISA subscription limit £20,000; Junior ISA and CTF subscription limit £4,260.