2017/18 Income Tax

  2017-18 2016-17
Basic Rate Band – income up to £33,500* £32,000
Starting rate for savings income 0%** 0%**
Basic rate 20% 20%
Dividend ordinary rate 7.5%*** 7.5%**
Higher Rate Band – income over £33,500 £32,000
Higher rate 40% 40%
Dividend upper rate 32.5%*** 32.5%***
Additional Rate – income over £150,000 £150,000
Additional rate 45% 45%
Dividend upper rate 38.1%*** 38.1%***
Starting rate limit (savings income) £5,000** £5,000**

 

* For Scottish taxpayers only the limit is £31,500.

** If an individual’s taxable non-savings income exceeds starting rate limit, then starting rate limit for savings will not be available for savings income.  £1,000 of saving income for basic rate taxpayers (£500 for higher rate) may be tax-free.

*** The first £5,000 of divideds are tax-free.

 

Personal allowances (PA)

2017-18 2016-17
£11,500 £11,000

 

Married couple’s allowance (MCA) (relief 10%)

  2017-18 2016-17
Either partner born before 6th April 1935 £8,445* £8,355*

 

Transferable Tax Allowance

  2017-18 2016-17
for certain married couples (relief 20%) £1,150 £1,100

* Allowances are reduced by £1 for every £2 that adjusted net income exceeds £28,000 (£27,700) to a minimum MCA of £3,260 (£3,220).  Where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil regardless of the individual’s date of birth.

 

Tax Shelters

  2017-18 2016-17
Venture Capital Trust up to £200,000 £200,000
Enterprise Investment Scheme up to £1,000,000 £1,000,000
Seed Enterprise Investment Scheme up to £100,000 £100,000
Social Investment Tax Relief £1,000,000 £1,000,000

 

Tax Free Savings Accounts

  2017-18
ISA Subscription Limit £20,000
Junior ISA and CTF subscription limit £4,128