Income Tax UK Rates
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Income Tax Rates
If you are looking at Income Tax Rates and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances and tax efficient ways to legally minimise your Income Tax.
Income Tax rates for England and Wales (and Scotland prior to 2018/ 19)
|Starting rate for Savings: 0%||£0 - £5,000||£0 - £5,000||£0 - £5,000|
|Basic rate: 20%||£0 - £37,500||£0 - £37,700||£0-£37,700|
|Higher rate: 40%||£37,501 - £150,000||£37,701 - £150,000||£37,701- £150,000|
|Additional rate: 45%||Over £150,000||Over £150,000||Over £150,000|
For Scottish Taxpayers, the following proposed rates and bands will apply if the Scottish Budget for 2020-21 is approved by the Scottish Government.
|Starter rate||19%||Over £12,500 Up to £14,585||Over £12,570 Up to £14,667|
|Basic rate||20%||Over £14,585 Up to £25,158||Over £14,667 Up to £25,296|
|Higher rate||21%||Over £25,158 Up to £43,430||Over £25,296 Up to £43,662|
|Additional rate||41%||Over £43,430 Up to £150,000||Over £43,430 Up to £150,000|
|Top rate||46%||Above £150,000||Above £150,000|
Note 1. Scottish rates apply to Scottish taxpayers on all non-savings income which includes earned income from employment, self-employment or partnerships and property income, pension income and any other income that is not classed as savings or dividends.
If, after deducting your Personal Allowance from your total income liable to Income Tax, your nonsavings income is above this limit then the starting rate for savings will not apply. Nonsavings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
|Dividend ordinary rate - for dividends otherwise taxable at the basic rate ( effective rate with tax credit)||7.50%||7.50%||8.75%|
|Dividend upper rate - for dividends otherwise taxable at the higher rate (effective rate with tax credit)||32.50%||32.50%||33.75%|
|Dividend additional rate - for dividends otherwise taxable at the additional rate (effective rate with tax credit)||38.10%||38.10%||39.35%|
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