Individual Tax 2018-10-25T15:28:34-07:00

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 £2,000 and some types of savings interest.

The table below shows the personal tax rates for the tax year ended 05 April 2019:

Band Taxable income Tax rate
Personal Allowance Up to £11,850 0%
Basic rate £11,501 to £46,350 20%
Higher rate £46,351 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 £2,000 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?