Income Tax


Income Tax  2019/20  2018/19
Starting rate limit (savings income)  *£5,000  *£5,000
Starting rate  *0%  *0%
Basic rate band - income up to  £37,500  £34,500
Basic rate  20%  20%
Dividend ordinary rate  ***7.5%  ***7.5%
Higher rate - income over  £37,500  £34,500
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%

* 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.

** For Scottish taxpayers only the limit is £31,580.

*** Dividends above 2k rate @7.5%


Personal allowances


2019/20 2018/19
Personal allowance 1 £12,500 £11,850
Blind person's allowance
£2,450 £2,390
Married couple's allowance (MCA)
Either partner born before 6 April 1935 (relief restricted to 10%) 2 £8,915 £8,695
Transferable tax allowance ('Marriage Allowance')
For certain married couples and civil partners born after 5 April 1935 (relief 20%) 3 £1,250 £1,190

Tax Shelters

Type 2019/20 2018/19
Venture Capital Trust (VCT) up to £200,000 £200,000
Enterprise Investment Scheme (EIS) up to £2,000,000 £2,000,000
Seed Enterprise Investment Scheme up to £100,000 £100,000
Social Investment Tax Relief £1,000,000 £1,000,000

Notes

1. Where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil regardless of the individual's date of birth.

2. Allowances are reduced by £1 for every £2 that adjusted net income exceeds £28,000 (£27,700 2016/17) to a minimum MCA of £3,260 (£3,220 2016/17).

3. Available to spouses/civil partners born after 5 April 1935, the allowance is 10% of the standard personal allowance. It allows a spouse or civil partner who is not liable to income tax above the basic rate to transfer this amount of their personal allowance to their spouse/civil partner. The recipient must not be liable to tax above the basic rate. Relief is given as a tax reduction at 20% of the transferred amount.

(Source: www.certax.co.uk)