Income tax

The UK personal allowance, tax rates and bands for 2019/20 were announced by the Chancellor in the 2018 Autumn Budget. The income tax rates and bands applying from 6 April 2019 in England and Northern Ireland are outlined below:

Band (£) Rate (%)
0 - 37,500 20
37,501 - 150,000 40
Over 150,000 45

Savings income

Starting rate for savings 0%
Starting rate limit for savings £5,000

Not available if the taxable non-savings income exceeds the starting rate band. £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free.

Dividend income

Dividend ordinary rate 7.5%
Dividend upper rate 32.5%
Dividend additional rate 38.1%

The first £2,000 of dividends are tax-free.

Scottish residents

The tax on income (other than savings and dividend income) is different for taxpayers who are resident in Scotland to taxpayers resident elsewhere in the UK. The Scottish income tax rates and bands apply to income such as employment income, self-employed trade profits and property income.

The new Scottish income tax rates and bands for 2019/20, applicable to non-savings and non-dividend income, are summarised below:

Band (£) Band name Rate (%)
0 - 2,049 Starter 19
2,050 - 12,444 Basic 20
12,445 - 30,930 Intermediate 21
30,931 - 150,000 Higher 41
Over 150,000 Top 46

Welsh residents

From April 2019, the Welsh government has the right to vary the rates of income tax payable by Welsh taxpayers. The UK government has reduced each of the three rates of income tax paid by Welsh taxpayers by 10p. The Welsh government has set the Welsh rate of income tax at 10p, which will be added to the reduced rates. This means the tax payable by Welsh taxpayers continues to be the same as that payable by English and Northern Irish taxpayers.

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Madisons is a trading name of Madison Business Services Limited Registered office: Bushbury House, 435 Wilmslow Road, Withington, Manchester, M20 4AF. Company Number: 03800186, VAT Registration Number: 741 1182 67 Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our Audit Registration can be viewed at www.auditregister.org.uk and www.cro.ie/auditors for Ireland under reference number C009016107.
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