Autumn Statement 2016 – Income Tax Rates & Bands

November 29th, 2016

2016/17 2017/18
Starting rate of 0% on savings income up to 3

Savings allowance at 0% tax

·         Basic rate taxpayers

·         Higher rate taxpayers

·         Additional rate taxpayers

£5,000

 

£1,000

£500

£0

£5,000

 

£1,000

£500

£0

Basic rate of 20% on income up to 4 £32,000 £33,500
Higher rate of 40% on income up to £150,000 above 4 £32,000 £33,500
Additional rate of 45% on income over £150,000 £150,000
Dividends

Dividend allowance

 

£5,000

 

£5,000

Dividends rates

  • Basic rate taxpayers
7.5% 7.5%
  • Higher rate taxpayers
32.5% 32.5%
  • Additional rate taxpayers
38.1% 38.1%
Trusts: Standard rate band generally £1,000 £1,000
Rate applicable to trusts: dividends 38.1% 38.1%
                                other income 45% 45%
Child Benefit Charge: 1% of benefit per £100 of income between £50,000 and £60,000

 

Notes

3 Not available if taxable non-savings income exceeds the starting rate band.

4 A different basic rate band may apply for 2017/18 for Scottish taxpayers.