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TAXABLE INCOME BANDS AND TAX RATES
2017/18
2016/17
Starting rate of 0% on
savings up to
£5,000*
£5,000*
Basic rate band
Scottish basic rate band
£33,500
£31,500
£32,000
£32,000
Higher rate band
Scottish higher rate band
£33,501-£150,000
£31,501-£150,000
£32,001-£150,000
£32,001-£150,000
Basic rate
20%
20%
Higher rate
40%
40%
Additional rate
45%
45%
Additional rate band
Over £150,000
Over £150,000
Dividend ordinary rate
7.5%
7.5%
Dividend upper rate
32.5%
32.5%
Dividend additional rate
38.1%
38.1%
* The starting rate does not apply if taxable non-saving income exceeds the
starting rate limit.
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Allowances that reduce taxable income or are not taxable
2017/18
2016/17
Personal allowance*
£11,500
£11,000
Personal
savings
allowance
Basic rate taxpayer
£1,000
£1,000
Higher rate taxpayer
£500
£500
Dividend allowance
£5,000
£5,000
Marriage allowance**
£1,150
£1,100
Trading allowance***
£1,000
N/A
Property allowance***
£1,000
N/A
Rent a room allowance
£7,500
£7,500
Blind person’s allowance
£2,320
£2,290
* The personal allowance is reduced by £1 for each £2 of income from
£100,000 to £123,000 (2016/17, £122,000).
** Available for basic rate taxpayers.
*** 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.