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TAXABLE INCOME BANDS AND TAX RATES
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%
*The starting rate does not apply if taxable income exceeds the starting rate limit.
Income tax in Scotland
2018/19
2018/19
rates
2017/18
2017/18
rates
Starter rate
band £2,000* 19%
Basic rate
band
£2,001 –
£12,150 20% £31,500 20%
Intermediate
rate band
£12,151 –
£31,580 21%
Higher rate
band
£31,581 –
£150,000 41% £31,501 –£150,000 40%
Top/additional
rate band
Above
£150,000 46% Above
£150,000 45%
* Assumes individuals are in receipt of the personal allowance.
Allowances that reduce taxable income or are not taxable
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
Additional rate taxpayer £0 £0
Dividendallowanceat0% £2,000 £5,000
Marriage/civilpartner transferableallowance** £1,185 £1,150
Trading allowance and property
allowance each***
£1,000 £1,000
Rent a room allowance £7,500 £7,500
Blind person’s allowance £2,390 £2,320
* 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 may be 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 each of these
sources in excess of £1,000 can deduct the allowance from their gross income
as an alternative to claiming expenses.