- Last Updated: 23 August 2019
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 |
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 |
£34,501 |
£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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