- Last Updated: 23 March 2022
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
|
Year |
2022-23 |
2021-22 |
2020-21 |
2019-20 |
2018-19 |
|
Personal allowance PA restricted by £1 for every £2 of income over £100K* |
12,570 |
12,570 |
12,500 |
12,500 |
11,850 |
|
Savings allowance: Basic Rate Higher rate Additional Rate |
1,000 500 0 |
1,000 500 0 |
1,000 500 0 |
1,000 500 0 |
1,000 500 0 |
|
Property/Trading allowance ** |
1,000 |
1,000 |
1,000 |
1,000 |
1,000 |
|
Blind person's allowance |
2,600 |
2,520 |
2,500 |
2,450 |
2,390 |
|
Transferable marriage allowance |
1,260 |
1,260 |
1,250 |
1,250 |
1,190 |
|
Married Couples Allowance (born before 6 April 1935) Max Min up to 10% of the appropriate Max/Min |
9,415 3,640 |
9,125 3,530 |
9,075 3,510 |
8.915 3.450 |
8,695 3,360 |
|
MCA Limit MCA reduced by £1 for every £2 exceeding limit |
31,400 |
30,400 |
30,200 |
29,600 |
28,900 |
|
Rent a room relief |
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.
** Property/Trading allowance: Up to £1,000 Trading and property allowances are available for each type of income. Restrictions apply.
*** Transferable allowance: a spouse or civil partner who is not liable to Income Tax above the basic rate may transfer their 'Marriage Allowance' which is 10% of their personal allowance (£1,260 for 2021-22 and 2022-23) 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.
Past years
|
2017-18 |
2016-17 |
2015-16 |
2014-15 |
|
|
Personal allowance PA restricted by £1 for every £2 of income over £100K |
11,500 | 11,000 | 10,600 | 10,000 |
|
Blind person's allowance |
2,320 | 2,290 | 2,290 | 2,230 |
|
Transferable marriage allowance (for married couples and civil partners)** |
1,150 | 1,100 | 1,060 | |
|
Married Couples Allowance (born before 6 April 1935) Max Min up to 10% of the appropriate Max/Min |
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 |
28,000 | 27,700 | 27,700 | 27,000 |
|
Rent a room relief |
7,500 | 7,500 | 7,500 | 7,500 |
Income Tax rates
|
Rate |
% |
2021-22 & 2022-23 |
2019-20 & 2020-21 |
2018-19 |
|
Savings rate* |
0% |
£0 - £5,000 | £0 - £5,000 | £0 - £5,000 |
|
Basic |
20% |
£0-£37,700 |
£0-£37,500 |
£0-£34,500 |
|
Higher |
40% |
£37,701-£150,000 |
£37,501 |
£34,501 |
|
Top |
45% |
£150,001+ |
£150,001+ |
£150,001+ |
Past years
|
Rate |
% |
2017-18 |
2016-17 |
2015-16 |
2014-15 |
|
Savings rate* |
0% |
£0 - £5,000 |
£0 - £5,000 |
£0 - £5,000 |
n/a |
|
Basic |
20% |
£0 -£33,500 |
£0 -£32,000 |
£0 - £31,785 |
£0 to £31,865 |
|
Higher |
40% |
£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 + |
* The 0% savings rate is available where an individual's taxable non-savings income is below this limit: a 0% tax rate applies to savings income up to the limit.
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 from 2022-23 on
From 6 April 2022, dividend tax rates increase by an extra 1.25% in Finance Act 2022.
- Basic rate dividends taxed at 8.75%.
- Higher rate dividends taxed at 33.75%.
- Upper rate dividends taxed at 39.35%.
- The dividend allowance remains at £2,000.
Dividend tax from 2016-17 on
- 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
|
Rate |
2022-23 on |
2016-17 to 2021-22 |
2013-14 to 2015-16 |
|
Top tax rate |
45% |
45% |
45% |
|
Dividend rate |
39.35% |
38.1% |
37.5% |
|
Effective rate |
n/a |
n/a |
30.55% |
|
Higher tax rate |
40% |
40% |
40% |
|
Dividend rate |
33.75% |
32.5% |
32.5% |
|
Effective rate |
n/a |
n/a |
25% |
| Basic rate |
8.75% |
7.5% |
10%* |
* Dividend received net of 10% tax credit. 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 |
2022-23 |
2016-17 to 2021-22 |
2013-14 to 2015-16 |
|
Dividend rate: within the first £1,000 |
8.75% |
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% |
45% |
|
Dividend trust rate |
39.35% |
38.1% |
37.5% |
Pensions: higher rate restrictions
|
Contribution limits |
2020-21 to 2022-23 |
2019-20 |
2018-19 |
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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