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 | 0 |
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 |