Income Tax Rates

 

2017-18 £ a year 2016-17 £ a year
Basic Rate (20 percent) 0 – 33,500 Basic rate (20 per cent) 0 – 32,000
Higher Rate (40 percent) 33,501- 150,000 Higher Rate (40 percent) 32,001 – 150,000
Additional Rate (45 percent) over 150,000 Additional Rate (45 percent) over 150,000

The 10% starting rate limit for savings is £5,000 for 2017-18. If an individual’s taxable non-savings income exceeds the starting rate limit, then the 10% starting rate for savings will not be available for savings income.

Dividend allowance on first £5,000 of dividend income is Nil. The rates available, for dividends above the Dividend Allowance, for the 2017-18 tax year are the 7.5% dividend basic rate, 32.5% dividend higher rate and the 38.1%  dividend additional rate.

Income Tax Allowances

Personal Allowance

2017-18

£ per year

2016-17

£ per year

Change

For people born between 6 April 1938 and 5 April 1948

Transferable Allowance

11,500

1,150

11,000

1,100

500

50

For people born before 6 April 1938 11,500 11,000 100

 Income Limit  (Reduce age allowance by £1 for every £2 of ‘adjusted net income’ over £27,700)

10,660  10,660 

 Transferable Allowance

10 % of the personal allowance may be transferable between certain spouses where neither pays tax above the basic rate. This Transferable Allowance is not available to couples who are entitled to the Married Couples Allowance

 

Married Couple’s Allowance

Available to people born before April 6 1935. Tax relief for this allowance is restricted to 10%

 

 2017-18

£ per year

2016-17

£ per year 

Change 
maximum amount 8,355 8,355 0
minimum amount 3,220 3,220 0
Income limit for under 65 personal allowance 100,000 100,000 0
Income limit for age related allowances 27,700 27,700 0
Blind Person’s allowance 2,290 2,290 0
 

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