Tax Info

Personal Allowances

The Personal Allowance is the amount of income a person can get before they pay tax.

Allowances 2020 to 2021 2019 to 2020 2018 to 2019 2017 to 2018
Personal Allowance £12,500 £12,500 £11,850 £11,500
Income limit for Personal Allowance £100,000 £100,000 £100,000 £100,000

The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.

Personal Allowances for people born before 6 April 1948

People born before 6 April 1948 may be entitled to a bigger Personal Allowance.

From 2016 to 2017, everyone gets the standard Personal Allowance.

Allowances 2015 to 2016 2014 to 2015 2013 to 2014
Personal Allowance for people born between 6 April 1938 and 5 April 1948 £10,600 £10,500 £10,500
Personal Allowance for people born before 6 April 1938 £10,660 £10,660 £10,660
Income limit for Personal Allowance £27,700 £27,000 £26,100

This Personal Allowance goes down by £1 for every £2 above the income limit. It won’t go below the standard Personal Allowance for that year.

Before 2013 to 2014

Before the 2013 to 2014 tax year, the bigger Personal Allowance was based on age instead of date of birth.

Allowances 2012 to 2013
Personal Allowance for people aged 65 to 74 £10,500
Personal Allowance for people aged 75 and over £10,660
Income limit for Personal Allowance £25,400

Other allowances

Allowances 2020 to 2021 2019 to 2020 2018 to 2019 2017 to 2018
Married Couple’s Allowance – maximum amount £9,075 £8,915 £8,695 £8,445
Married Couple’s Allowance – minimum amount £3,510 £3,450 £3,360 £3,220
Blind Person’s Allowance £2,500 £2,450 £2,390 £2,320

Tax rates and bands

Tax is paid on the amount of taxable income remaining after allowances have been deducted.

Band Rate Income after allowances 2020 to 2021 Income after allowances 2019 to 2020 Income after allowances 2018 to 2019 Income after allowances 2017 to 2018
Starting rate for savings 10% (0% from 2015 to 2016) Up to £5,000 Up to £5,000 Up to £5,000 Up to £5,000
Starter rate in Scotland 19% Up to £2,085 Up to £2,049 Up to £2,000
Basic rate in Scotland 20% £2,086 to £12,658 £2,050 to £12,444 £2,001 to £12,150 Up to £31,500
Basic rate in England & Northern Ireland 20% Up to £37,500 Up to £37,500 Up to £34,500 Up to £33,500
Basic rate in Wales 20% Up to £37,500 Up to £37,500 Up to £34,500 Up to £33,500
Intermediate rate in Scotland 21% £12,659 to £30,930 £12,445 to £30,930 £12,151 to £31,580
Higher rate in Scotland 40%
(41% from 2018 to 2019)
£30,931 to £150,000 £30,931 to £150,000 £31,581 to £150,000 £31,501 to £150,000
Higher rate in England & Northern Ireland 40% £37,501 to £150,000 £37,501 to £150,000 £34,501 to £150,000 £33,501 to £150,000
Higher rate in Wales 40% £37,501 to £150,000 £37,501 to £150,000 £34,501 to £150,000 £33,501 to £150,000
Top rate in Scotland 46% Over £150,000 Over £150,000 Over £150,000 Over £150,000
England & Northern Ireland Additional rate 45% Over £150,000 Over £150,000 Over £150,000 Over £150,000
Wales Additional rate 45% Over £150,000 Over £150,000 Over £150,000 Over £150,000

Dividends

The following rates for tax on dividends apply from 6 April 2010 to 5 April 2016.

Band Dividend tax rates
Basic rate (and non-taxpayers) 7.5%
Higher rate 32.5%
Additional rate (from 6 April 2013) 38.1%
Additional rate (dividends paid before 6 April 2013) 42.5%

 

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