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 and some types of savings interest.
The table below shows the personal tax rates for the tax year ended 05 April 2024:
| Band | Taxable income | Tax rate |
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | over £125,140 | 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
| Band | Tax rate |
| Basic rate | 7.5% |
| Higher rate | 32.5% |
| Additional rate | 37.5% |
