Income Tax rates and taxable bands
Personal Allowances
The Personal Allowance is the amount of income a person can get before they pay tax.
| Allowances | 2021/22 | 2020/21 | 2019/20 | 2018/19 |
|---|---|---|---|---|
| Personal Allowance | £12,570 | £12,500 | £12,500 | £11,850 |
| Income limit for Personal Allowance | £100,000 | £100,000 | £100,000 | £100,000 |
The Personal Allowance goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.
Tax rates and bands
Tax is paid on the amount of taxable income remaining after allowances have been deducted.
| Band | Rate | Income after allowances 2021/22 | Income after allowances 2020/21 | Income after allowances 2019/20 | Income after allowances 2018/19 |
|---|---|---|---|---|---|
| Starting rate for savings | 10% (0% from 2015 to 2016) | Up to £5,000 | Up to £5,000 | Up to £5,000 | Up to £5,000 |
| Basic rate in England | 20% | Up to £37,700 | Up to £37,500 | Up to £37,500 | Up to £34,500 |
| Higher rate in England | 40% | £37,701 to £150,000 | £37,501 to £150,000 | £37,501 to £150,000 | £34,501 to £150,000 |
| England Additional rate | 45% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
Dividends
The following rates for tax on dividends apply from 6 April 2010 to 5 April 2016.
| Band | Dividend tax rates |
|---|---|
| Basic rate (and non-taxpayers) | 7.5% |
| Higher rate | 32.5% |
| Additional rate (from 6 April 2013) | 38.1% |
| Additional rate (dividends paid before 6 April 2013) | 42.5% |
From 6 April 2016 there’s a new dividend allowance.
