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 | 2014/15 | |
|
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 |
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 |
£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 clawback Child Benefit payments when a claimant or their partner's income exceeds £50,000.
Dividend tax 2016/17 onwards
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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