TaxSource Total

Here you can access details of the annual key tax rates and bands for Ireland and the UK

The tax rates and bands are displayed in a table format, per year, and by country

Tax rates and bands for the previous years are displayed within the table for comparison purposes

UK TAX RATES AND BANDS

INCOME TAX ALLOWANCES

2015/2016
£

2016/2017
£

Personal allowance for people born after 5 April 1938 (1)

10,600

11,000

Income limit for personal allowance (1)

100,000

100,000

Personal allowance for people born before 5 April 1938 (1)

10,660

11,000

Income limit for married couples allowance (2)

27,700

27,700

Married couple’s allowance (4):

Maximum amount of married couple’s allowance (people born before 6 April 1935)

8,355

8,355

Minimum amount of married couple’s allowance

3,220

3,220

Marriage allowance (3)

1,060

1,100

Blind person’s allowance

2,290

2,290

Dividend allowance (5)

5,000

Personal savings allowance (6):

Basic rate taxpayers

1,000

Higher rate taxpayers

500

INCOME TAX RATES AND TAXABLE BANDS

2015/2016
£

2016/2017
£

Starting rate for savings: 0%*

0–5,000

0–5,000

Basic rate: 20%

0–31,785

0–32,000

Higher rate: 40%

31,786–150,000

32,001–150,000

Additional rate: 45%

Over 150,000

Over 150,000

*From 2008/09 there is a starting rate for savings income only. If non-savings income is above this limit then the starting rate for savings will not apply.

The dividend rate is the 7.5% ordinary rate (2015–16: 10%) and the 32.5% dividend upper rate (2015–16: 32.5%). In addition to these rates, there is a dividend additional rate of 38.1% (2015–16: 37.5%). From 6 April 2016 the dividend tax credit is being abolished and replaced with a new £5,000 tax-free dividend allowance

(1) From 2016–17 onwards, all individuals will be entitled to the same personal allowance, regardless of the individuals’ date of birth. This allowance is subject to the £100,000 income limit which applies regardless of the individual’s date of birth. The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.
(2) This allowance is subject to the £27,700 income limit. The individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit but is not reduced below £11,000 (unless the £100,000 income limit applies – see note 1).
(3) This transferable allowance is available to married couples and civil partners who are not in receipt of married couple’s allowance. A spouse or civil partner who is not liable to income tax; or not liable at the higher or additional rate, can transfer this amount of their personal allowance to their spouse or civil partner. The recipient must not be liable to income tax at the higher or additional rate. The relief for this allowance is given at 20%.
(4) This allowance is subject to the £27,700 income limit. The individual’s married couple’s allowance is reduced by £1 for every £2 above the limit. That reduction only applies after any reduction to their personal allowance (see note 1). The individual’s married couple’s allowance is never reduced below the minimum amount. The relief for this allowance is given at 10%. This is the maximum relief for maintenance payments where at least one of the parties was born before 6 April 1935.
(5) From April 2016, the new Dividend Allowance means that individuals will not have to pay tax on the first £5,000 of dividend income they receive.
(6) From April 2016, the new Personal Savings Allowance means that basic rate taxpayers will not have to pay tax on the first £1,000 of savings income they receive and higher rate taxpayers will not have tax to pay on their first £500 of savings income.