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): |
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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): |
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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. |