Income Tax

Current Income Tax rates

For more detailed information visit the HMRC Website

RATES 2020/21 2021/22 2022/23
Basic rate of 20% on income up to… £37,500 £37,700 £37,700
Higher rate of 40% on income… £37,501 to £150,000 £37,701 to £150,000 £37,700 to £150,000
Additional rate of 45% on income £150,000 £150,000 £150,000
Starting rate of 0% for savings up to £5,000 £5,000 £5,000
Dividends: basic rate taxpayers 7.5% 7.5% 8.75%
Higher rate taxpayers 32.5% 32.5% 33.75%
Additional rate taxpayers 38.1% 38.1% 39.35%
Trust rate 45% 45% 45%
Trust rate on first £1,000 (Dividend) 20% (7.5%) 20% (7.5%) 20% (8.75%)
Trust rate on dividends 38.1% 38.1% 39.35%
PERSONAL ALLOWANCES 2020/21 2021/22 2022/23
Personal allowance £12,500 £12,570 £12,570
Income limit for personal allowance £100,000 £100,000 £100,000
Married couple’s/civil partnership allowance
– Maximum amount £9,075 £9,125 £9,415
– Minimum amount £3,510 £3,530 £3,640
Income limit for married couples/civil partnership allowance £30,200 £30,200 TBA
Marriage allowance £1,250 £1,257 £1,257
Blind person’s allowance £2,500 £2,520 £2,600
Trading allowance £1,000 £1,000 £1,000
Property allowance £1,000 £1,000 £1,000

 

SAVINGS AND INVESTMENTS 2020/21 2021/22 2022/23
Dividend allowance £2,000 £2,000 £2,000
Personal savings allowance
– basic rate taxpayers £1,000 £1,000 £1,000
– higher rate taxpayers £500 £500 £500
– additional rate taxpayers £nil £nil £nil