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Tax Rates & Allowances

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Income Tax Rates and Bands

Recent income tax rates and bands are as follows:

2017/18 2018/19 2019/20
Savings rate: 10%, 0% from 2015/16 Up to £5,000 Up to £5,000 Up to £5,000
Dividend Allowance: 0% Up to £5,000 Up to £2,000 Up to £2,000
Basic rate: 20% Up to £33,500 Up to £34,500 Up to £37,500
Higher rate: 40% £33,501 - £150,000 £34,501 - £150,000 £37,501 - £150,000
Additional rate: 45% Over £150,000 Over £150,000 Over £150,000

When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £46,350 in 2018/19. This is expected to rise to £50,000 for 2019/20. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.

For 2017/18 the basic rate band on non-savings income for Scottish Taxpayers is set at £43,000. For all other income types it remains in line with the main UK band of £45,000.

Scottish Income Tax Rates and Bands for non-savings income

2018/19 2019/20
Starter rate: 19% Up to £2,000 Up to £2,050
Basic rate: 20% £2,001 to £12,150 £2,501 to £12,445
Intermediate rate: 21% £12,151 to £31,580 £12,446 to £30,930
Higher rate: 41% £31,581 - £150,000 £30,931 to £150,000
Additional rate: 46% Over £150,000 Over £150,000
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