Tax treatment varies according to individual circumstances and is subject to change.
Income Tax Rates and Allowances
|Income Tax allowances||2019-20||2018-19|
|Personal reduced by £1 for every £2 of net income over||£100,000||£100,000|
|Transferable tax allowance for married couples/civil partners||£1,250||£1,190|
|Blind Person's Allowance||£2,450||£2,390|
|Married couples/civil partner at 10% - minimum (1)||£3,450||£3,360|
|Married couples/civil partner at 10% - maximum (1,2)||£8,915||£8,695|
|Rent-a-room tax-free income||£7,500||£7,500|
(1) Where at least one spouse/civil partner was born before 6/4/35.
(2) Reduced by £1 for every £2 of income over £28,600 (£28,900 for 2018/19) until the minimum is reached.
Personal Allowances and Tax Bands
|Basic rate of 20% on taxable income up to:||£37,500||£34,500|
|Higher rate of 40% on taxable income over:||£37,500||£34,500|
|Additional rate of 45% on taxable income over:||£150,000||£150,000|
|Year||Personal Allowance||Higher Rate Tax Band|
|2019-2020||£12,500||£37,500 (+£12,500 = £50,000)|
|2018-2019||£11,850||£34,500 (+£11,850 = £46,350)|
Savings & Dividend Taxation
Starting rate at 0% on savings income up to
Reduced by £1 for every £1 of income above Personal Allowance
|Personal Savings Allowance at 0% tax on interest received
Depends on income tax band of other income.
|Basic rate taxpayers||£1,000||£1,000|
|Higher rate taxpayers||£500||£500|
|Additional rate taxpayers||£0||£0|
|Dividend allowance at 0% tax - all individuals
Tax rate on dividend income in excess of allowance:
|Tax rate on dividend income:|
|Basic rate taxpayers||7.5%||7.5%|
|Higher rate taxpayers||32.5%||32.5%|
|Additional rate taxpayers||38.1%||38.1%|
Rates for Capital Gains Tax
The Capital Gains Tax rate you use depends on the total amount of your taxable income, so work that out first.
Use these rates and allowances for Capital Gains Tax to work out your overall gains above your tax-free allowance (known as the Annual Exempt Amount).
Who is likely to be affected
Individuals, trustees of settlements and the personal representatives of deceased persons who have capital gains.
|Not including Residential property||2019-20||2018-19|
|Tax Rate (tax payers below higher rate)||10%||10%|
|Tax Rate (within UK higher and additional tax rate)||20%||20%|
|Annual Exemption Amount (Individuals)||£12,000||£11,700|
|Annual Exemption Amount (Other Trustees)||£6,000||£5,850|
For more information (including residential property) www.gov.uk/guidance/capital-gains-tax-rates-and-allowances »
Note: These tables are provided for guidance only.
Tax Advice which contains no investment element is not regulated by the Financial Conduct Authority.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.