Tax and NIC rates

Income tax allowance

Allowances £ 2017/18 2018/19 2019/20
Personal Allowances*      
individuals 11,500 11,850 12,500
Transferable tax allowance:      
for married couples and civil partners 1,150 1,190 1,250
Married couple's allowance:      
for those born before 6 April 1935, maximum amount 8,445 8,695 8,915
for those born before 6 April 1935, minimum amount 3,260 3,360 3,450
Blind person's allowance 2,320 2,390 2,450
Income limit for personal allowance 100,000 100,000 100,000
Income limit for married couple’s allowance** 28,000 28,900 29,600
Dividend Allowance*** 5,000 2,000 2,000
Personal Savings Allowance****      
Basic Rate Taxpayers 1,000 1,000 1,000
Higher Rate Taxpayers 500 500 500



* Before 2016/17 an individual’s personal allowance depended on their date of birth and their income in the tax year. From 2016/17 onwards, all individuals are entitled to the same personal allowance, regardless of their date of birth; this is subject to the income limit of £100,000.

** The married couple’s allowance is reduced, where the taxpayer’s income in the tax year is above the income limit, by £1 for every £2 above the limit until the level of the minimum married couple’s allowance is reached.

*** From 2016/17, any individual who receives dividend income is entitled to a Dividend Allowance. This is a nil rate band of tax, which means an individual pays no income tax on their dividend income up to the amount of the allowance. It does not reduce the amount of taxable income.

**** From 2016/17, basic rate and higher rate taxpayers (but not additional rate taxpayers) who receive savings income are entitled to a Personal Savings Allowance. This is a nil rate band of tax, which means that basic rate and higher rate taxpayers pay no income tax on £1,000 or £500 of savings income respectively. The Personal Savings Allowance does not reduce the amount of taxable income.

Income tax – taxable bands* **

UK income tax

2017/18 Band 2018/19 Band 2019/20 Band
Starting rate for savings
0%
Up to £5,000 Starting rate for savings 
0%
Up to £5,000 Starting rate for savings 
0%
Up to £5,000

Basic rate
20%

Up to £33,500 Basic rate 
20%
Up to £34,500 Basic rate 
20%
Up to £37,500
Higher rate
40%
£33,501 to £150,000 Higher rate
40%
£34,501 to £150,000 Higher rate
40%
£37,501 to £150,000
Additional rate
45%
Over £150,000 Additional rate
45%
Over £150,000 Additional rate
45%
Over £150,000

 

* From April 2016, if you live in Scotland and are a Scottish taxpayer, Scottish rates and bands apply to your non-savings, non-dividend income. See our pages on Scottish income tax for more information.

Scottish income tax

2017/18 Band 2018/19 Band 2019/20 Band
N/A N/A Starter rate 19% Up to £2,000 Starting rate 19% Up to £2,049

Basic rate
20%

Up to £31,500 Basic rate 
20%
£2,001 to £12,150 Basic rate 
20%
£2,050 to £12,444
N/A N/A Intermediate rate £12,151 to £31,580 Intermediate rate 21% £12,445 to £30,930
Higher rate 40% £31,501 to £150,000 Higher rate 41% £31,581 to £150,000 Higher rate 41% £31,931 to £150,000
Additional rate 45% Over £150,000 Top rate 46% Over £150,000 Top rate 46% Over £150,000

 

** From April 2019, if you live in Wales and are a Welsh taxpayer, Welsh rates and bands apply to your non-savings, non-dividend income. See our pages on Welsh income tax for more information.

Welsh income tax

2019/20 Band
Basic rate 20% Up to £37,500
Higher rate 40% £37,501 to £150,000
Additional rate 45% Over £150,000

Dividends*

2017/18 Tax rate 2018/19 Tax rate 2019/20 Tax rate
Up to £33,500 7.5% Up to £34,500 7.5% Up to £37,500 7.5%
£33,501 – £150,000 32.5% £34,501 – £150,000 32.5% £37,501 – £150,000 32.5%
Over £150,000 38.1% Over £150,000 38.1% Over £150,000 38.1%

 

* From April 2016 the dividend tax credit (10%) was abolished and replaced with a tax-free Dividend Allowance. In addition, the dividend tax rates changed.

National Insurance contributions (NIC)

Class 1 primary NIC (employee – EE)

£ per week (unless stated) 2017/18 2018/19 2019/20
Lower earnings limit 113 116 118
Primary threshold 157 162 166
Upper accrual point n/a n/a n/a
Upper earnings limit 866 892 962
EE primary Class 1 rate between primary threshold and upper earnings limit 12% 12% 12%
EE primary Class 1 rate above upper earnings limit 2% 2% 2%
EE contracted-out rebate – salary n/a n/a n/a
Married women's reduced rate between primary threshold and upper earnings limit 5.85% 5.85% 5.85%
Married women's rate above upper earnings limit 2% 2% 2%



Class 1 secondary NIC (employers – ER)

£ per week (unless stated) 2017/18 2018/19 2019/20
Secondary threshold 157 162 166
ER secondary Class 1 rate above secondary threshold 13.8% 13.8% 13.8%
ER contracted-our rebate – salary related schemes n/a n/a n/a



Class 2 NIC (self-employed)

£ per week (unless stated) 2017/18 2018/19 2019/20
Class 2 rate 2.85 2.95 3.00
Class 2 small earnings exception/small profits (per year) 6,025 6,205 6,365
Special Class 2 rate for share fishermen 3.50 3.60 3.65
Special Class 2 rate for volunteer development workers 5.65 5.80 5.90



Class 3 NIC (voluntary)

£ per week 2017/18 2018/19 2019/20
Class 3 rate 14.25 14.65 15.00



Class 4 NIC (self-employed)

£ per year 2017/18 2018/19 2019/20
Class 4 lower profits limit 8,164 8,424 8,632
Class 4 upper profits limit 45,000 46,350 50,000
Class 4 rate between lower profits limit and upper profits limit 9% 9% 9%
Class 4 rate above upper profits limit 2% 2% 2%


Capital gains tax

  2017/18 2018/19 2019/20
Standard rate* 10%/18% 10%/18% 10%/18%
Rate for higher and additional taxpayers 20%/28% 20%/28% 20%/28%
Annual exemption £11,300 £11,700 £12,000
Entrepreneurs' Relief rate 10% 10% 10%
Entrepreneurs' Relief lifetime limit £10m £10m £10m

 

* CGT rates of 10% and 20% introduced in Finance Bill 2016 for disposals on or after 6 April 2016 do not apply to transactions involving residential property or carried interest. CGT rates for these transactions remain at 18% and 28%.

Inheritance tax

Chargeable lifetime transfers (after exemptions) 2017/18 2018/19 2019/20
Nil rate band – 0% Up to £325,000 Up to £325,000 Up to £325,000
20% Over £325,000 Over £325,000 Over £325,000
On death (net estate)      
Nil band rate – 0% Up to £325,000 Up to £325,000 Up to £325,000
Residence nil rate band* – 0% Up to £100,000 Up to £125,000 Up to £150,000
40% Over £325,000 or £425,000 Over £325,000 or £450,000 Over £325,000 or £475,000


* From April 2017, there is a residence nil rate band. This will be available on the death of an individual, if they pass on a property, which has been their residence at some point, to a direct descendant.

** There is a reduced rate of 36% for estates that leave 10% or more to charity.

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Other

Rates and thresholds for employers: 2019 to 2020

These are the rates and thresholds that employers use when they operate your payroll. They include statutory sick pay and parental pay rates as well as minimum wage rates.

For other rates and allowances, including in respect of child benefit and tax credits, see Rates and allowances: HM Revenue and Customs. (This collection brings together the main rates of tax and duty, interest rates, exchange rates and allowances published by HMRC.)

For a list of pension and benefit rates, see GOV.UK

The auto-enrolment thresholds in 2019/20 can be found on GOV.UK.

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