2018/2019 Income Tax Bands & Rates – The Facts

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

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