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

   2020/21  2019/20  2018/19  2017/18  2016/17  2015/16  2014/1514

Personal 

allowance 

PA restricted by £1 for every £2 of income over £100K

12,500 12,500  11,850  11,500  11,000  10,600  10,000

Blind person's

allowance

2,500 2,450  2,390  2,320  2,290  2,290  2,230

Transferable 

marriage 

allowance (for married couples and civil partners)**

1,250 1,250  1,190  1,150  1,100  1,060  

Married Couples Allowance 

(born before 6 April 1935)

Max

Min

up to 10% of the appropriate Max/Min

 9,075

3,510

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

 30,200  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  7,500  7,500  7,500

 

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

** Transferable allowance: 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 four years in which to make the election.

Income Tax rates

Rate

%

2019/20 &

2020/21

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 clawback 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 taxpayers 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 2020/21

From 2019/20

From 2018/19

From 2016/17 

2014/15 to 2015/16

Annual allowance

£40,000

£40,000

£40,000

£40,000

£40,000

Tapered Annual Allowance with income over

£240,000

£150,000

£150,000

£150,000

n/a

 

See Pensions: tax rules and planning

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