Personal tax and benefits

Income tax bands of taxable income (£ per year) Tax year

Value	Tax year 2016-17	Tax year 2017-18
Basic rate	£0-32,000	£0-33,500
Higher rate	£32,001-150,000	£33,500-150,000
Additional rate	Over £150,000	Over £150,000

​Income tax rates - 2016-17

Value	Tax Year 2016-17
Main rates 1
Basic rate	20%
Higher rate	40%
Additional rate	45%
Dividend rates 2
Dividend ordinary rate - for dividends otherwise taxable at the basic rate	7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate	32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate	38.1%

Income tax rates - 2017-18

​Main rates 3	TaxYear 2017-18
Basic rate	20%
Higher rate	40%
Additional rate	45%
Savings rates  4
Starting rate for saving	0%
Savings higher rate	40%
Savings additional rate	45%
Dividend rates 5
Dividend ordinary rate - for dividends otherwise taxable at the basic rate	7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate	32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate	38.1%
Default rates 6
Default basic rate	20%
Default higher rate	40%
Default additional rate	45%

​Starting rates for savings income

	Tax year 2016-17	Tax year 2017-18
​Starting rate for savings	0%	0%
Starting rate limit for savings	£5,000	£5,000

Personal tax and benefits
Income tax bands of taxable income (£ per year) 
Tax year 2016-17Tax year 2017-18
Basic rate£0-32,000£0-33,500
Higher rate£32,001-150,000£33,500-150,000
Additional rateOver £150,000 Over £150,000

Income tax rates - 2016-17 Tax year
2016-17
Main rates 1 
Basic rate20%
Higher rate40%
Additional rate45%
Dividend rates 2 
Dividend ordinary rate - for dividends otherwise taxable at the basic rate7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate38.1%1.3 

Income tax rates - 2017-18
​Main rates 3 
Basic rate20%
Higher rate40%
Additional rate45%
Savings rates  4 
Starting rate for savings0%
Savings basic rate20%
Savings higher rate40%
Savings additional rate45%
Dividend rates 5 
Dividend ordinary rate - for dividends otherwise taxable at the basic rate7.5%
Dividend upper rate - for dividends otherwise taxable at the higher rate32.5%
Dividend additional rate - for dividends otherwise taxable at the additional rate38.1%
Default rates 6 
Default basic rate20%
Default higher rate40%
Default additional rate45%

Starting rates for savings income Tax year 2016-17Tax year 2017-18
​Starting rate for savings0%0%
Starting rate limit for savings£5,000£5,000

Special rates for trustees’ income 
​Tax year 2016-17Tax year 2017-18
Standard rate on first £1,000 of income which would otherwise be taxable at the special rates for trusteesUp to 20%, depends on the type of incomeUp to 20%, depends on the type of income
Trust rate45%45%
Dividend trust rate38.1%38.1%

Income tax allowances Tax year 2016-17Tax year 2017-18
Personal allowance  
Personal allowance 7£11,000£11,500
Income limit for personal allowance£100,000£100,000
Income limit for Married couple’s allowance 8£27,700£28,000
Marriage allowance  
Marriage allowance  9£1,100£1,150
Married couple’s allowance for those born before 6 April 1935  
Maximum amount of married couple’s allowance  10£8,355£8,445
Minimum amount of married couple’s allowance 10£3,220£3,260
Blind person’s allowance  
Blind person’s allowance£2,290£2,320
Dividend allowance  
Dividend allowance 11£5,000£5,000
Personal savings allowance  
Personal savings allowance for basic rate taxpayers 12£1,000£1,000
Personal savings allowance for higher rate taxpayers 12£500£500

Special rates for trustees’ income