Income Tax rates and taxable bands
The Personal Allowance is the amount of income a person can get before they pay tax.
|Income limit for Personal Allowance||£100,000||£100,000||£100,000||£100,000|
The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.
Tax rates and bands
Tax is paid on the amount of taxable income remaining after allowances have been deducted.
|Band||Rate||Income after allowances 2021/22||Income after allowances 2020/21||Income after allowances 2019/20||Income after allowances 2018/19|
|Starting rate for savings||10% (0% from 2015 to 2016)||Up to £5,000||Up to £5,000||Up to £5,000||Up to £5,000|
|Basic rate in England||20%||Up to £37,700||Up to £37,500||Up to £37,500||Up to £34,500|
|Higher rate in England||40%||£37,701 to £150,000||£37,501 to £150,000||£37,501 to £150,000||£34,501 to £150,000|
|England Additional rate||45%||Over £150,000||Over £150,000||Over £150,000||Over £150,000|
The following rates for tax on dividends apply from 6 April 2010 to 5 April 2016.
|Band||Dividend tax rates|
|Basic rate (and non-taxpayers)||7.5%|
|Additional rate (from 6 April 2013)||38.1%|
|Additional rate (dividends paid before 6 April 2013)||42.5%|
From 6 April 2016 there’s a new dividend allowance.