Income Tax and Personal Savings – Autumn 2018 Budget Report
- Introduction
- Budget Highlights
- Business Tax & Investment Incentives
- Capital Taxes
- Duties
- National Minimum Wage and National Living Wage
- Income Tax & Personal Savings
- Value Added Tax
- Tax and Travel
- National Insurance
- Other Measures Announced
- Making Tax Digital
- 2019/20 Tax Calendar
Income Tax and Personal Savings
Income tax rates and bands
| 2019/20 | 2018/19 | ||
|---|---|---|---|
| Band £ | Rate % | Band £ | Rate % |
| 0 – 37,500 | 20 | 0 – 34,500 | 20 |
| 37,501 – 150,000 | 40 | 34,501 – 150,000 | 40 |
| Over 150,000 | 45 | Over 150,000 | 45 |
Savings income
| 2019/20 | 2018/19 | |
|---|---|---|
| Savings allowance basic rate | £1,000 | £1,000 |
| Savings allowance higher rate | £500 | £500 |
A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.
Dividend income
| 2019/20 | 2018/19 | |
|---|---|---|
| Dividend allowance | £2,000 | £2,000 |
| Dividend ordinary rate | 7.5% | 7.5% |
| Dividend upper rate | 32.5% | 32.5% |
| Dividend additional rate | 38.1% | 38.1% |
Personal allowances
| 2019/20 | 2018/19 | |
|---|---|---|
| Personal Allowance (PA) | £12,500 | £11,850 |
| Personal allowance income limit | £100,000 | £100,000 |
| Marriage Allowance Transferable between certain spouses where neither pay tax above the basic rate |
£1,250 | £1,190 |
| Married couple’s allowance (MCA) (relief given at 10%) Either partner born before 6 April 1935 – minimum amount – income limit |
£8,950
£3,450 |
£8,695
£3,360 |
| Blind person’s allowance | £2,450 | £2,390 |
Scottish income tax rates and bands
Savings and dividend income are taxed using UK rates and bands.
| 2019/20 | 2018/19 | |
|---|---|---|
| Rates and bands for 2019/20 will be announced in the Scottish Budget | Band £ | Rate % |
| 0 – 2,000 | 19 | |
| 2,001 – 12,150 | 20 | |
| 12,151 – 31,580 | 21 | |
| 31,581 – 150,000 | 41 | |
| Over 150,000 | 46 | |
Welsh income tax rates
From 6 April 2019, the UK government will reduce the basic, higher and additional rates of income tax paid by Welsh taxpayers by 10%, and three Welsh rates of income tax will then be added to the reduced UK rates. The Welsh government proposes to set the first Welsh rates at 10%.
Individual Savings Accounts (ISAs)
Individuals can invest in any combination of cash or stocks and shares up to the overall annual ISA subscription limit. However, a saver may only pay into a maximum of one Cash ISA, one Stocks and Shares ISA, one Innovative Finance ISA and one Lifetime ISA. The overall investment limit for 2019/20 is £20,000 (£4,368 for junior accounts).