Income Tax Rates
If you are looking at Income Tax Rates and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and tax efficient ways to legally minimise your Income Tax.
England – Please Contact us for Scottish Income Tax Rates
| Rate | 2018/19 | 2019/20 |
| Starting rate for savings: 0%* | £0 – £5,000 | £0 – £5,000 |
| Basic rate: 20% | £0 – £37,500** | £0 – £37,700 |
| Higher rate: 40% | £35,501*** – £150,000 | £37,701-£150,000 |
| Additional rate: 45% | Over £150,001 | Over £150,001 |
*Prior to 6th April 2015, this rate was 10% and applied to savings income only.
** Scottish Taxpayers only the limit is £31,500.
*** Scottish Taxpayers, we are awaiting confirmation of 19/20 income tax rates.
If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
| 20/21 | 21/22 | |
| Dividend ordinary rate – for dividends otherwise taxable at the basic rate (effective rate with tax credit) | 7.5%* | 7.5% |
| Dividend upper rate – for dividends otherwise taxable at the higher rate (effective rate with tax credit) | 32.5%* | 32.5% |
| Dividend additional rate – for dividends otherwise taxable at the additional rate (effective rate with tax credit) | 38.1%* | 38.1% |
* The tax-free dividend allowance was reduced to £2,000 from 6 April 2018
Please contact us for further information.
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