INCOME TAX

Bands

2023-24

2022-23

Savings starting rate - 0%*

£1 - £5,000

£1 - £5,000

Basic rate 20%

£1 - £37,700

£1 - £37,700

Higher rate 40%

£37,701 - £125,140

£37,701 - £150,000

Additional rate 45%

Over £125,140

Over £150,000

Scottish rates
Starter rate 19% £1 - £2,162 £1 - £2,162
Basic rate 20% £2,163 - £13,118 £2,163 - £13,118

Intermediate rate - 21%

£13,119 - £31,092

£13,119 - £31,092

Higher rate - 42% (2022-23: 41%)

£31,093 - £125,140

 £31,093 - £150,000

Additional rate - 47% (2022-23: 46%)

Over £125,140

Over £150,000
     
Welsh rates
Starter rate 0%* £1 - £5,000  £1 - £5,000 
Basic rate 20% £1 - £37,700   £1 - £37,700
Higher rate - 40% £37,701 - £125,140  £37,701 - £150,000 

Additional rate - 45%

Over £125,140 

 Over £150,000

* The savings starting rate does not apply if non-savings income exceeds £5,000. 

Income tax in Scotland and Wales is payable on non-savings and non-dividend income.

Dividend allowance £1,000  £2,000
Dividend ordinary rate 8.75% 8.75%
Dividend upper rate
33.75% 33.75%
Dividend additional rate
39.35% 39.35%
Personal savings allowance
- basic rate taxpayers
£1,000 £1,000
- higher rate taxpayers
£500

£500

Reliefs

2023-24

2022-23

Personal allowance

 £12,570  £12,570

Registered blind person's allowance

£2,870

£2,600

Income limit for personal allowance*

£100,000

£100,000

 

* The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000. 

Married couple allowance - tax relief given at 10%

- Born before 6 April 1935

£9,415

£9,125

- Minimum amount*

£3,640

£3,530

- Income limit

£31,400

£30,400

- Marriage allowance*
£1,260 £1,260

 *A tax payer can transfer up to £1,260 (2022-23: £1,260) of their unused personal allowance to a spouse or civil partner who is not a higher rate taxpayer.

High Income Child Benefit Charge* on income over

£50,000

£50,000

* The tax charge is levied at the rate of 1% of the full child benefit award for each £100 that income exceeds £50,000, up to a maximum of 100% of the child benefit claimed.

Taxpayers can choose whether to continue receiving child benefit and pay the tax charge or may opt out of receiving the child benefit.

There is a cap on certain Income Tax reliefs of the greater of £50,000 or 25% of income.


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