Income Tax rates and allowances (England)

Click here for National Insurance rates

Different income tax rates and allowances may apply for other parts of the UK, see:

Income tax: Personal allowances and reliefs

 

2019/20

2018/19

2017/18

2016/17

2015/16

2014/15

Personal allowance

£

£

 £

£

 £

£

Aged under 65*

12,500

11,850

11,500

11,000

10,600

10,000

PA restricted by £1 for every £2 of income over

100,000

Born between 6 April 1938 and 5 April 1948

 

-

-

-

-

10,500

Aged 65–74

 

-

-

 -

-

 -

Aged 75 & over

 

-

-

 -

-

-

Born before 6 April 1938

 

-

-

-

10,660

10,660

Blind person's allowance

2,450

2,390

2,320

 2,290

2,290

 2,230

Marriage Allowance: transferable tax allowance (for married couples and civil partners)**

1,250

1,190

1,150

 1,100

1,060

-

Married Couples Allowance (MCA): born before 6 April 1935: up to 10% of the appropriate Max/Min

Max

Min

 

8,915

3,450

 

8,695

3,360

 

8,445

3,260

 

8,355

3,220

 

8,355

3,220

 

8,165

3,140

MCA limit

MCA reduced by £1 for every £2 exceeding limit

29,600

28,900

28,000

 27,700

 27,700

 27,000

 

Rent a room relief

See Property Income Reliefs

7,500

7,500

7,500 

 7,500

 4,250

 4,250

 

*Personal allowance restriction: by £1 for every £2 of an individual's adjusted net income above £100,000.

** Transferable allowance: from 2015/16 a spouse or civil partner who is not liable to income tax above the basic rate may transfer up to 10% of their personal allowance (£1,250 for 2019/20) to their spouse/civil partner, provided that the recipient of the transfer is not liable to income tax above the basic rate. Taxpayers have 4 years in which to make the election.

Income tax rates

Rate

%

2019/20

2018/19

2017/18

2016/17

2015/16

 2014/15

Basic

20%

£0-37,500

£0-£34,500

£0 -£33,500

£0 -£32,000

£0 - £31,785

£0 to £31,865

Higher

40%

£37,501
to
£150,00

£34,501
to £150,000

£33,501 to £150,000

£32,001 to £150,000

£31,786 to £150,000

£31,866 to £150,000

Top

45%

£150,001+

£150,001+

£150,001 +

£150,001 +

£150,001 +

£150,001 +


Child benefit claimants

From 7 January 2013 the High Income Child Benefit Tax Charge provisions claw back Child Benefit payments when a claimant or their partner's income exceeds £50,000.


Dividend tax 2016/17 onwards

  • The dividend tax credit is abolished
  • The first £2,000 of dividend received is tax free (£5,000 for 2016/17 and 2017/18)
  • Basic rate dividends taxed at 7.5%
  • Higher rate dividends taxed at 32.5%
  • Upper rate dividends taxed at 38.1%

Tax rate & effective tax rate on dividends up to 2015/16

Rate

2016/17 to date

2013/14 to 2015/16 

Top tax rate

45%

45%

Dividend rate

38.1%

37.5%

Effective rate

na

30.55%

Higher tax rate

40%

40%

Dividend rate

32.5%

32.5%

Effective rate

n/a

25%

Basic rate  7.5% 10%*

 

* Dividend received net of 10% tax. The amount received needs to be grossed up for higher rate tax payers by multiplying by 10/9. The dividend rate is then applied according to your tax band

Special rates for trustees income

Rate

2016/17 onwards

2013/14 to 2015/16

Dividend rate: within the first £1,000 7.5% -

Standard rate: on first £1,000 of other income which would otherwise be taxed at the special rate for trustees

Up to 20% depending on type of income

Trust rate: all other income

45%

45%

Dividend trust rate

38.1%

37.5%


Pensions - higher rate restrictions

Contribution limits

From 2019/20

From 2018/19

From 2016/17 

2014/15 to 2015/16

Annual allowance

£40,000

£40,000

£40,000

£40,000

Tapered Annual Allowance with income over

£150,000

£150,000

£150,000

n/a

Minimum tapered allowance

£10,000

£10,000

£10,000

n/a

Lifetime allowance

£1,055,000

£1,030,000

£1 million

£1.25 million

see Pensions: tax rules and planning

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