England, Nothern Ireland & Wales
| Tax bands and rates | 2019/20 | 2018/19 | |
| Basic-rate band | £37,500 | £34,500 | |
| Basic-rate tax | 20% | 20% | |
| Dividend ordinary tax rate | 7.5% | 7.5% | |
| Savings starting rate band limit* | £5,000 | £5,000 | |
| Savings starting rate – savings income | 0% | 0% | |
| Higher-rate band | Over £37,500 – £150,000 | Over £34,500 – £150,000 | |
| Higher-rate tax | 40% | 40% | |
| Dividend upper tax rate | 32.5% | 32.5% | |
| Additional-rate band over | Above £150,000 | Above £150,000 | |
| Additional-rate tax | 45% | 45% | |
| Dividend additional tax rate | 38.1% | 38.1% | |
| Personal allowance** | £12,500 | £11,850 | |
| High income child benefit charge – 1% of adjusted net income of £50,000 to £60,000 | |||
| Trading allowance*** | £1,000 | £1,000 | |
| Dividend allowance at 0% – all individuals | £2,000 | £2,000 | |
| Property allowance*** | £1,000 | £1,000 | |
| Savings allowance**** | £1,000 | £1,000 | |
| Marriage allowance | £1,250 | £1,190 | |
| Blind person’s allowance | £2,450 | £2,390 | |
| Married couple’s allowance (if at least one born before 6 April 1935) | Maximum amount | £8,915 | £8,695 |
| Tax reduction at 10% | £891.50 | £869.50 | |
| Minimum amount | £3,450 | £3,360 | |
| Tax reduction | £345 | £336 | |
| Non-domiciled remittance basis charge | |||
| Applies after UK residence in seven or more of the previous nine tax years | £30,000 | £30,000 | |
| Applies after UK residence in at least 12 of the previous 14 years | £60,000 | £60,000 | |
| Enterprise investment scheme (EIS)***** up to | £1m | £1m | |
| Maximum amount for EIS carry back | £50,000 | £50,000 | |
| Income tax relief rate | 30% | 30% | |
| Seed enterprise investment scheme (SEIS) | £100,000 | £100,000 | |
| Income tax relief | 50% | 50% | |
| Venture capital trust (VCT)***** | £200,000 | £200,000 | |
| Social investment relief | £1m | £1m | |
| Income tax relief | 30% | 30% | |
| VCT tax relief rate | 30% | 30% | |
| Golden handshake maximum tax-free | £30,000 | £30,000 | |
| Rent-a-room (exempt on gross annual rent up to) | £7,500 | £7,500 | |
| Construction industry scheme – deduction rate | |||
| Standard rate – registered | 20% | 20% | |
| Higher rate – not registered | 30% | 30% | |
| Child benefit charge – 1% of benefit per £100 of income between £50,000 and £60,000 | |||
* Savings income falling into the first £5,000 may be taxed at 0% for certain low income earners.
** Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000.
*** When the gross income is £1,000 or less. May alternatively be deducted from gross income instead of the actual expenses.
**** £500 for higher-rate and £0 for additional-rate taxpayers.
***** Investment limit increases for investment in knowledge-intensive companies receiving investments under the EIS and VCTs rules. The annual limit for individuals investing in knowledge-intensive companies under the EIS increases to £2 million, provided that anything above £1 million is invested in knowledge-intensive companies. The annual EIS and VCT limit on the amount of tax-advantaged investments a knowledge-intensive company may receive is increased to £10 million.
Scotland
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| 2019/20 | Band | Rate |
| Over £12,500*-£14,550 | Starter | 19% |
| Over £14,550 – £24,944 | Basic | 20% |
| Over £24,944 – £43,430 | Intermediate | 21% |
| Over £43,430 – £150,000** | Higher | 41% |
| Above £150,000 | Top | 46% |
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* Assumes individuals are in receipt of the personal allowance.
** Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000.
Wales
Devolution of income tax to Wales commenced in April 2019. Under this, the three rates applying in England and Northern Ireland are reduced by 10% each, and it is open to the Welsh Assembly to impose their own three rates in each of the basic, higher and additional-rate bands.
However, the Welsh Assembly has decided that the rates will all be 10%, leaving the Welsh rates unchanged from the rates in England and Northern Ireland until after the next Wel;sh Assembly elections in May 2021.
2019 and beyond: England, Wales & Northern Ireland only
Termination payments over £30,000, which are subject to income tax, are also subject to employers NICs. Although this was expected to commence in 2018, it was delayed until 2019.
Income tax will only be applied on the equivalent of an employee’s basic pay if the employee has not worked the notice period.
