Income Tax Rates 2017/2018

Income Tax Rates 2017/2018

 

Income tax rates 2017/18 2016/17
  Starting rate limit (savings income) £5,000 £5,000
  Starting rate 0% 0%
Basic rate band – income up to £33,500 £32,000
  Basic rate 20% 20%
  Dividend ordinary rate 7.5% 7.5%
Higher rate – income over £33,500 £32,000
  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%
  1. If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate will not be available for savings income. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free.
  2.  The first £5,000 of dividends are tax-free
Personal allowance (PA)
Personal Allowance 1 £11,500 £11,000
Blind person’s allowance £2,320 £2,290
Married couple’s allowance (MCA)
Either partner born before 6 April 1935 (relief restricted to 10%) 2 £8,445 £8,355
Transferable tax allowance (‘Marriage Allowance’)
For certain married couples and civil partners born after 5 April 1935 (relief 20%) 3 £1,150 £1,100
Tax Shelters
Venture Capital Trust (VCT) up to £200,000 £200,000
Enterprise Investment Scheme (EIS) up to £1,000,000 £1,000,000
Seed Enterprise Investment Scheme up to £100,000 £100,000
Social Investment Tax Relief £1,000,000 £1,000,000

 

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