2018/19 Income Tax

Income Tax Rates

(other than dividend income)

Band £ 2018-19 Band £ 2017-18
0 to 34,500 20% 0 to 33,500 20%
34,501 to 150,000 40% 33,501 to 150,000 40%
Over 150,000 45% Over 150,000 45%

Scottish taxpayers are subject to different tax rates and banks on non-savings and non-dividend income.

Savings Income

  2018-19 2017-18
Starting rate for savings 0% 0%
Starting rate limit for savings £5,000 £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.

Dividened Income

  2018-19 2017-18
Dividend ordinary rate 7.5% 7.5%
Dividend upper rate 32.5% 32.5%
Dividend additional rate 38.1% 38.1%

The first £2,000 of dividends are tax free (£5,000 for 2017/18).

Personal allowances (PA)

2018-19 2017-18
£11,850 £11,500

Marriage Allowance

2018-19 2017-18
£1,190 £1,150

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

  2017-18 2016-17
Married couple’s allowance (MCA) (relief 10%) £8,695 £8,445
Either partner born before 6th April 1935 £3,360 £3,260

Reduce MCA by £1 for every £2 of adjusted net income over £28,900 (£28,000).

Tax Free Savings Accounts

  2018-19 2017-18
ISA Subscription Limit £20,000 £20,000
Junior ISA and CTF subscription limit £4,260 £4,128