Tax Information

Personal Allowances

The Personal Allowance is the amount of income a person can get before they pay tax.

Allowances2019 to 20202018 to 20192017 to 20182016 to 2017
Personal Allowance£12,500£11,850£11,500£11,000
Income limit for Personal Allowance£100,000£100,000£100,000£100,000

The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.

Personal Allowances for people born before 6 April 1948

People born before 6 April 1948 may be entitled to a bigger Personal Allowance.

From 2016 to 2017, everyone gets the standard Personal Allowance.

Allowances2015 to 20162014 to 20152013 to 2014
Personal Allowance for people born between 6 April 1938 and 5 April 1948£10,600£10,500£10,500
Personal Allowance for people born before 6 April 1938£10,660£10,660£10,660
Income limit for Personal Allowance£27,700£27,000£26,100

This Personal Allowance goes down by £1 for every £2 above the income limit. It won’t go below the standard Personal Allowance for that year. There’s more guidance about Personal Allowances for people born before 6 April 1948 and pre 6 April 1938.

Before 2013 to 2014

Before the 2013 to 2014 tax year, the bigger Personal Allowance was based on age instead of date of birth.

Allowances2012 to 2013
Personal Allowance for people aged 65 to 74£10,500
Personal Allowance for people aged 75 and over£10,660
Income limit for Personal Allowance£25,400

Other allowances

Allowances2019 to 20202018 to 20192017 to 20182016 to 2017
Married Couple’s Allowance – maximum amount£8,915£8,695£8,445£8,355
Married Couple’s Allowance – minimum amount£3,450£3,360£3,220£3,220
Blind Person’s Allowance£2,450£2,390£2,320£2,290

Tax rates and bands

Tax is paid on the amount of taxable income remaining after allowances have been deducted.

BandRateIncome after allowances 2019 to 2020Income after allowances 2018 to 2019Income after allowances 2017 to 2018Income after allowances 2016 to 2017
Starting rate for savings10% (0% from 2015 to 2016)Up to £5,000Up to £5,000Up to £5,000Up to £5,000
Starter rate in Scotland19%Up to £2,049Up to £2,000
Basic rate in Scotland20%£2,050 to £12,444£2,001 to £12,150Up to £31,500Up to £32,000
Basic rate in England & Northern Ireland20%Up to £37,500Up to £34,500Up to £33,500Up to £32,000
Basic rate in Wales20%Up to £37,500Up to £34,500Up to £33,500Up to £32,000
Intermediate rate in Scotland21%£12,445 to £30,930£12,151 to £31,580
Higher rate in Scotland40%
(41% from 2018 to 2019)
£30,931 to £150,000£31,581 to £150,000£31,501 to £150,000£32,001 to £150,000
Higher rate in England & Northern Ireland40%£37,501 to £150,000£34,501 to £150,000£33,501 to £150,000£32,001 to £150,000
Higher rate in Wales40%£37,501 to £150,000£34,501 to £150,000£33,501 to £150,000£32,001 to £150,000
Top rate in Scotland46%Over £150,000Over £150,000Over £150,000Over £150,000
England & Northern Ireland Additional rate45%Over £150,000Over £150,000Over £150,000Over £150,000
Wales Additional rate45%Over £150,000Over £150,000Over £150,000Over £150,000

Dividends

The following rates for tax on dividends apply from 6 April 2010 to 5 April 2016.

BandDividend tax rates
Basic rate (and non-taxpayers)7.5%
Higher rate32.5%
Additional rate (from 6 April 2013)38.1%
Additional rate (dividends paid before 6 April 2013)42.5%

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