Individual Tax 2019-09-23T04:38:23-07:00

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:

BandTaxable incomeTax rate
Personal AllowanceUp to £12,5000%
Basic rate£12,501 to £50,0020%
Higher rate£50,001 to £150,00040%
Additional rateover £150,00045%

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

Income Tax bandTax-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:

BandTax rate
Basic rate7.5%
Higher rate32.5%
Additional rate38.1%

How are non-residents taxed in the UK?