2023/24
2022/23
- Income tax applies to the amount of income after deduction of personal allowances.
- Income is taxed in a specific order with savings and dividend income taxed last.
- Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
- The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
- The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
- Income tax is devolved to Wales on non-savings and non-dividend income.
Income tax rates
| Band of taxable income | Rate | Rate if dividends | |
|---|---|---|---|
| £ | % | % | |
| 0 - 37,700 | Basic rate | 20 | 8.75 |
| 37,701 - 125,140 | Higher rate | 40 | 33.75 |
| Over 125,140 | Additional rate | 45 | 39.35 |
| Special rates for savings and dividend income falling into above bands of taxable income | |||
| Savings Allowance | |||
| Basic rate taxpayers | 1,000 | 0 | |
| Higher rate taxpayers | 500 | 0 | |
| Additional rate taxpayers | Nil | N/A | |
| Dividend Allowance | |||
| for all taxpayers | 1,000 | 0 | |
- Income tax applies to the amount of income after deduction of personal allowances.
- Income is taxed in a specific order with savings and dividend income taxed last.
- Dividend income and savings income falling within the dividend and savings allowances still form part of total income of an individual.
- The starting rate band is only applicable to savings income. The 0% rate is not available if the taxable amount of non-savings income exceeds the starting rate band.
- The Scottish Parliament set the rates of income tax and the limits at which these rates apply for Scottish residents on non-savings and non-dividend income.
- Income tax is devolved to Wales on non-savings and non-dividend income.
Income tax rates
| Band of taxable income | Rate | Rate if dividends | |
|---|---|---|---|
| £ | % | % | |
| 0 - 37,700 | Basic rate | 20 | 8.75 |
| 37,701 - 125,140 | Higher rate | 40 | 33.75 |
| Over 125,140 | Additional rate | 45 | 39.35 |
| Special rates for savings and dividend income falling into above bands of taxable income | |||
| Savings Allowance | |||
| Basic rate taxpayers | 1,000 | 0 | |
| Higher rate taxpayers | 500 | 0 | |
| Additional rate taxpayers | Nil | N/A | |
| Dividend Allowance | |||
| for all taxpayers | 2,000 | 0 | |