Individual Tax 2017-09-03T04:19:05+00:00

UK Individual Tax

Earned Income

An individual is taxed on most sources of income if they are UK-resident or if the income is UK derived. Some exceptions exist, however, including some state benefits, dividends under £5,000 and some types of savings interest.

The table below shows the personal tax rates for the tax year ended 05 April 2018:

Band Taxable income Tax rate
Personal Allowance Up to £11,500 0%
Basic rate £11,501 to £45,000 20%
Higher rate £45,001 to £150,000 40%
Additional rate over £150,000 45%

 

Personal Savings Allowance
You are entitled to up to £1000 of tax free interest income depending on your tax bracket:

Income Tax band Tax-free savings income
Basic rate £1,000
Higher rate £500
Additional rate £0

 

Dividend Income
The first £5,000 of income not taxable. After that:

Band Tax rate
Basic rate 7.5%
Higher rate 32.5%
Additional rate 38.1%

 

How are non-residents taxed in the UK?