Income Tax

Rates & Allowances


 
INCOME TAX ALLOWANCES 2015/16 2016/17 2017/18 2018/19
Personal Allowance
(for people born after 5 April 1948 *1)
£10,600 £11,000 £11,500 £11,850
Income Limit for Personal Allowance
(for people born after 5 April 1948 *1)
£100,000 £100,000 £100,000 £100,000
Personal Allowance
(for people born between 6 April 1938 and 5 April 1948 *2)
£10,600 £11,000 £11,600 £11,850
Personal Allowance
(for people born before 6 April 1938 *2)
£10,660 £11,000 £11,500 £11,850
Income Limit for Personal Allowance
(for people born before 5 April 1948 *2)
£27,000 £27,700 £27,700 £27,700
Married Couple’s Allowance
(maximum amount)
£8,355 £8,355 £8,445 £8,695
Married Couple’s Allowance
(minimum amount)
£3,200 £3,220 £3,260 £3,360
Blind Person’s Allowance £2,290 £2,290 £2,320 £2,390
 
 

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

 

Rates & Taxable Bands

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

 
BAND RATE AFTER 2015/16 AFTER 2016/17 AFTER 2017/18 AFTER 2018/19
Starting rate for savings = 10%* Up to £5,000 Up to £5,000 Up to £5,000 Up to £5,000
Basic rate = 20% Up to £31,785 Up to £32,000 Up to £33,500 Up to £34,500 *2
Higher rate = 40% £31,786 to £150k £32,001 to £150k £33,501 to £150k £34,501 to £150k*3
Additional rate = 45% Over £150,000 Over £150,000 Over £150,000 Over £150,000

* The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent 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.
*2 Basic rate (20%) in Scotland for after 2018/2019 is £2,001 to £12,150. Intermediate rate (21%) in Scotland is £12,151 to £31,580.
*3 Higher rate (41%) in Scotland for after 2018/2019 is £31,581 to £150k.

This information can be found on the Gov.uk website, where you can find in-depth advice about tax rates and guidance.