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Upcoming changes | 11
Band
Taxable income 2018/19
Rate*
Personal allowance** Up to £11,850
0%
Starter rate***
£11,851 to £13,850
19%
Basic rate
£13,851 to £24,000
20%
Intermediate rate***
£24,001 to £43,430
21%
Higher rate
£43,431 to £150,000
41%
Top rate
Above £150,000
46%
Table 3 - Scotland
Non-savings, non-dividend.
The personal allowance is reduced
by £1 for each £2 of income from
£100,000 to £123,700 (2017/18,
£123,000).
Indicates the two new bands being
introduced.
2018/19
2017/18
Starting rate* of 0% on savings up to
£5,000
£5,000
Basic rate band
£34,500
£33,500
Higher rate band
£34,501 - £150,000
£33,501 - £150,000
Additional rate band
Over £150,000
Over £150,000
Basic rate
20%
20%
Higher rate
40%
40%
Additional rate
45%
45%
Dividend ordinary rate
7.5%
7.5%
Dividend upper rate
32.5%
32.5%
Dividend additional rate
38.1%
38.1%
2018/19
2017/18
Personal allowance*
£11,850
£11,500
Personal savings allowance:
Basic rate taxpayer
£1,000
£1,000
Higher rate taxpayer
£500
£500
Dividend allowance
£2,000
£5,000
Marriage allowance**
£1,185
£1,150
Trading allowance***
£1,000
£1,000
Property allowance***
£1,000
£1,000
Rent a room allowance
£7,500
£7,500
Blind person’s allowance
£2,390
£2,320
Table 1 - Taxable income bands and tax rates
Table 2 - Allowances that reduce taxable income or are not taxable
* The starting rate does not apply if taxable non-saving income exceeds the starting rate limit.
The personal allowance is reduced by £1 for each £2 of income from £100,000 to £123,700 (2017/18, £123,000).
Any unused personal allowance maybe transferred to a spouse or civil partner who is not liable to higher or additional rate tax.
Note that landlords and traders with gross income from this source in excess of £1,000 can deduct the allowance
from their gross income as an alternative to claiming expenses.
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