Income tax applies to the amount of income after deduction of personal allowances.
Income is taxed in a specific order with savings and dividend income taxed last.
Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
Income tax is devolved to Wales on non-savings and non-dividend income.
Income tax rates
Band of taxable income
Rate
Rate if dividends
£
%
%
0 - 37,700
Basic rate
20
8.75
37,701 - 125,140
Higher rate
40
33.75
Over 125,140
Additional rate
45
39.35
Special rates for savings and dividend income falling into above bands of taxable income
Savings Allowance
Basic rate taxpayers
1,000
0
Higher rate taxpayers
500
0
Additional rate taxpayers
Nil
N/A
Dividend Allowance
for all taxpayers
1,000
0
Income tax applies to the amount of income after deduction of personal allowances.
Income is taxed in a specific order with savings and dividend income taxed last.
Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
Income tax is devolved to Wales on non-savings and non-dividend income.
Income tax rates
Band of taxable income
Rate
Rate if dividends
£
%
%
0 - 37,700
Basic rate
20
8.75
37,701 - 125,140
Higher rate
40
33.75
Over 125,140
Additional rate
45
39.35
Special rates for savings and dividend income falling into above bands of taxable income
