Income tax

Income tax rates

Other than savings and dividend income.

2018/19 2017/18
Band (£) Rate (%) Band (£) Rate (%)
0-34,500 20 0 - 33,500 20
34,501-150,000 40 33,501 - 150,000 40
Over 150,000 45 Over 150,000 45

Scotland income tax rates

Savings and dividend income are taxed using UK rates and bands.

2018/19 2017/18
Band (£) Rate (%) Band (£) Rate (%)
0-2,000 19 0-31,500 20
2,001-12,150 20 31,501-150,000 40
12,151-31,580 21 Over 150,000 45
31,581-150,000 41
Over 150,000 46

Savings income

  2018/19 and 2017/18
Starting rate 0%
Starting rate limit for savings £5,000

Not available if the taxable non-savings income exceeds the starting rate band. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax free.

Dividend income

Rate 2018/19 and 2017/18 (%)
Ordinary 7.5
Upper 32.5
Additional 38.1

The first £2,000 (£5,000 2017/18) of dividends are tax free.

Personal allowances

Allowance Type 2018/19 (£) 2017/18 (£)
Personal allowance 11,850 11,500
(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.)
10% of the PA may be transferable between certain spouses where neither pay tax above the basic rate, known as the marriage allowance.
Marriage allowance   1,190 1,150
Married couple's allowance (MCA) (relief 10%) Either partner born before 6 April 1935 8,695 8,445
  Min amount 3,360 3,260
Reduce MCA by £1 for every £2 of adjusted net income over £28,900 (£28,000).
Blind person's allowance   2,390 2,320