Personal Allowances
The Personal Allowance is the amount of income a person can get before they pay tax.
| Allowances | 2020 to 2021 | 2019 to 2020 | 2018 to 2019 | 2017 to 2018 |
| Personal Allowance | £12,500 | £12,500 | £11,850 | £11,500 |
| 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 2020 to 2021 | Income after allowances 2019 to 2020 | Income after allowances 2018 to 2019 | Income after allowances 2017 to 2018 |
| 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 |
| Starter rate in Scotland | 19% | Up to £2,085 | Up to £2,049 | Up to £2,000 | – |
| Basic rate in Scotland | 20% | £2,086 to £12,658 | £2,050 to £12,444 | £2,001 to £12,150 | Up to £31,500 |
| Basic rate in England & Northern Ireland | 20% | Up to £37,500 | Up to £37,500 | Up to £34,500 | Up to £33,500 |
| Basic rate in Wales | 20% | Up to £37,500 | Up to £37,500 | Up to £34,500 | Up to £33,500 |
| Intermediate rate in Scotland | 21% | £12,659 to £30,930 | £12,445 to £30,930 | £12,151 to £31,580 | – |
| Higher rate in Scotland | 40% (41% from 2018 to 2019) |
£30,931 to £150,000 | £30,931 to £150,000 | £31,581 to £150,000 | £31,501 to £150,000 |
| Higher rate in England & Northern Ireland | 40% | £37,501 to £150,000 | £37,501 to £150,000 | £34,501 to £150,000 | £33,501 to £150,000 |
| Higher rate in Wales | 40% | £37,501 to £150,000 | £37,501 to £150,000 | £34,501 to £150,000 | £33,501 to £150,000 |
| Top rate in Scotland | 46% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
| England & Northern Ireland Additional rate | 45% | Over £150,000 | Over £150,000 | Over £150,000 | Over £150,000 |
| Wales 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.