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2018/2019 Income Tax Bands & Rates – The Facts
22 November 2018
Income tax bands and rates – UK and Scotland
Introduction
This note sets out the income tax bands for UK and Scottish taxpayers.
Income tax bands and rates
| 2019/20 | Rate | 2018/19 | Rate | Note | |
| Individuals – UK tax bands | |||||
| Starting rate | £1 – £5,000 | 20% | £1 – £5,000 | 20% | 1, 4 |
| Basic rate | £5,001 – £37,500 | 20% | £5,001 – £34,500 | 20% | 2, 3, 4 |
| Higher rate | £37,501 – £150,000 | 40% | £34,501 – £150,000 | 40% | 2, 4 |
| Additional rate | Over £150,000 | 45% | Over £150,000 | 45% | 2, 4 |
| Individuals – Scottish tax bands | |||||
| Starter rate | £1 – £2,000 | 19% | £1 – £2,000 | 19% | 4 |
| Basic rate | £2,001 – £12,150 | 20% | £2,001 – £12,150 | 20% | 3, 4 |
| Intermediate rate | £12,151 – £31,580 | 21% | £12,151 – £31,580 | 21% | 4 |
| Higher rate | £31,581 – £150,000 | 41% | £31,581 – £150,000 | 41% | 4 |
| Top/Additional rate | Over £150,000 | 46% | Over £150,000 | 46% | 4 |
| Trusts | |||||
| Standard rate | £1 – £1,000 | 20% | £1 – £1,000 | 20% | 2 |
| Trust rate | Over £1,000 | 45% | Over £1,000 | 45% | 2 |
Notes
1 The rate on non-dividend savings income up to £5,000 is 0% as long as taxable non-savings income does not exceed £5,000.
2 The dividend allowance effectively provides that the first £2,000 of dividend income is received at 0%. Dividends in excess of this amount are taxed at 7.5% (basic and standard rates), 32.5% (higher rate) and 38.1% (additional and trust rate).
3 The basic rate band is increased by gross Gift Aid donations and most personal pension contributions.
4 The Scottish income tax bands and rates apply to earned income (including pensions income) and property income of Scottish taxpayers. The UK income tax rates and bands apply for all other income ( savings and dividend income.
Welsh income tax bands
From 6 April 2019, the Welsh Government will also have the right to set a Welsh rate of income tax. This rate will apply to the same types of income as in Scotland – namely earned, pension and property income – for Welsh taxpayers in addition to the UK rates less 10%. The Welsh Government has set the Welsh rate on income tax at 10% for 2019/20, leaving the combined UK plus Welsh rates the same as those applying in England and Northern Ireland.
If you have any queries about income tax rates and bands or any tax matters, then please do not hesitate to get in touch.
This was last updated 22 November 2018
