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Income Tax Rates and Bands
Recent income tax rates and bands are as follows:
2021/22 | 2022/23 | 2023/24 | 2024/25 | |
Savings rate: 0% | Up to £5,000 | Up to £5,000 | Up to £5,000 | Up to £5,000 |
Dividend Allowance: 0% | Up to £2,000 | Up to £2,000 | Up to £1,000 | Up to £500 |
Basic rate: 20% | Up to £37,700 | Up to £37,700 | Up to £37,700 | Up to £37,700 |
Higher rate: 40% | £37,501 - £150,000 | £37,701 - £150,000 | £37,701 - £125,140 | £37,701 - £125,140 |
Additional rate: 45% | Over £150,000 | Over £150,000 | Over £125,140 | Over £125,140 |
When the personal allowance (£12,570) is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,270. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.
Scottish Income Tax Rates and Bands
Scottish income tax applies to non-savings and non-divdend income. Reforms to the Scottish tax system led to a new Advanced band of income tax coming into force from 6 April 2024, meaning the country moves further away from the set up in the rest of the UK.
The new rates and thresholds from April 2024 look like this.
Tax rate | Income thresholds | |
Personal allowance | 0% | Up to £12,570 |
Starter Rate | 19% | £12,571 to £14,876 |
Basic Rate | 20% | £14,877 to £26,561 |
Intermediate Rate | 21% | £26,562 to £42,662 |
Higher Rate | 42% | £43,663 to £75,000 |
Advanced Rate | 45% | £75,001 to £125,140 |
Top Rate | 48% | Over £125,140 |
This is how the rates and thresholds looked prior to the changes:
2020/21 | 2021/22 | 2022/23 | 2023/24 | |
Starter rate: 19% | Up to £2,085 | Up to £2,097 | Up to £2,162 | Up to £2,162 |
Basic rate: 20% | £2,086 to £12,658 | £2,098 to £12,726 | £2,163 to £13,118 | £2,163 to £13,118 |
Intermediate rate: 21% | £12,659 to £30,930 | £12,727 to £31,092 | £13,119 to £31,092 | £13,119 to £31,092 |
Higher rate: 42% | £30,931 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 | £31,093 to £125,140 |
Additional rate: 46% (47% from 6 April 2023) | Over £150,000 | Over £150,000 | Over £150,000 | Over £125,140 |