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Tax rates and allowances 2018/19

Income tax rates (other than savings and 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

Scotland income tax rates (savings and dividend income are taxed using UK rates and bands)

2018/19 2017/18
Band £ Rate % Band £ Rate %
0 – 2,000 19 0 – 31,500 20
2,001 – 12,150 20 31,501 – 150,000 40
12,150 – 31,580 21 Over 150,000 45
31,581 – 150,000 41
Over 150,000 46
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) may be 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 (£5,000 2017/18) of dividends are tax free.

Personal allowance (PA)

2018/19 2017/18
Personal allowance £11,850 £11,500
(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.)
10% of the PA may be transferable between certain spouses where neither pay tax above the basic rate, known as the marriage allowance.
Marriage allowance £1,190 £1,150
Married couple’s allowance (MCA) (relief 10%)
(Either partner born before 6 April 1935.)
Min amount
£8,695

£3,360

£8,445

£3,260

(Reduce MCA by £1 for every £2 of adjusted net income over £28,900 (£28,000 2017/18).
Blind person’s allowance £2,390 £2,320
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