UK Personal Income Tax Rates and Allowances
- For Individuals (and this includes the trustees of trusts) the fiscal year runs from 6 April to the following 5 April
- For Companies the fiscal year runs from 1 April to the following 31 March
Personal Allowance (PA)
An Income Tax Personal Allowance ( £12,500 in 2019/20) is available to all UK residents and some foreign residents (depending on the terms of their country of residence’s Double Tax Treaties with the UK). Where an individual’s taxable income exceeds £100,000 the personal allowance is withdrawn on a sliding scale (by £1 for every £2 of income above £100,000, ceasing at £125,000).
Note that a Personal Allowance is not available where an individual claims the ‘Remittance Basis’ of taxation.
Personal Income Tax Rates
Current 2019-2020 Individual Income Tax Rates appear below and assume individuals are entitled to the standard personal allowance (£11,850):
|Tax Rate||Tax Year 2019-2010|
|Personal Allowance: Tax Rate 0%||0 - £12,500|
|Basic Rate: Tax Rate 20%||£12,501 - £50,000|
|Higher Rate: Tax Rate 40%||£50,001 - £150,000|
|Additional Rate: Tax Rate 45%||Over £150,000|
|Personal Savings Allowance: Tax Rate 0%||£1,000 - Lower rate taxpayers|
|£500 - Higher rate taxpayers|
|£0 - Additional rate taxpayers|
|Capital Gains Tax Allowance||£12,000|
|Dividend ordinary rate: 7.5%||For dividends otherwise taxable at the basic rate|
|Dividend upper rate: 32.5%||For dividends otherwise taxable at the higher rate|
|Dividend additional rate: 38.1%||For dividends otherwise taxable at the additional rate|
Expatriates should bear in mind that even if some investments in the UK attract no domestic tax, for example those within an ISA, they may still be subject to tax in their country of residency.