2018-19 2017-18

Basic rate band – income up to

£34,500 £33,500
Starting rate for savings income *0%
Basic rate 20% 20%
Dividend ordinary rate **7.5% **7.5%

Higher rate- income over

£34,500 £33,500
Higher rate 40% 40%
Dividend upper rate **32.5% **32.5%

Additional rate – income over

£150,000 £150,000
Additional rate 45% 45%
Dividend additional rate **38.1 **38.1
Starting rate limit *£5,000 *£5,000
*If an individual’s taxable non-savings income exceeds the starting rate limit, then starting rate limit for savings will not be available for savings income.  £1,000 of savings income for basic rate taxpayers (£500 higher rate, £0 additional rate) may be tax free.  **The first £2,000 of dividends are tax-free (£5,000 for 2017-18).

Personal allowance

£11,850 £11,500

Transferable Tax Allowance

For certain married couples (relief 20%) £1,190 £1,150

Tax-Free Savings Accounts

ISA Subscription £20,000 £20,000
Junior Isa £4,260 £4,128
Child Trust Fund £4,260 £4,128

For further information follow the link below:

https://www.gov.uk/income-tax-rates