Income Tax

Rates		2016/17	2015/16
Starting rate of 0% on savings income up to*		£5,000	£5,000
Savings allowance at 0% tax	Basic rate taxpayers	£1,000	N/A
	Higher rate taxpayers	£500	N/A
	Additional rate taxpayers	£0	N/A
Basic rate of 20% on income up to		£32,000	£31,785
Maximum tax at basic rate		£6,400	£6,357
Higher rate of 40% on income up to £150,000 from		£32,001	£31,786
Tax on first £150,000		£53,600	£53,643
Additional rate of 45% on income over		£150,000	£150,000
Dividend tax credit		N/A	10%
Dividend allowance at 0% tax – all individuals		£5,000	N/A
Tax rate on dividends based on		Dividend	Dividend + tax credits
	Basic rate taxpayers	7.5%	10%
	Higher rate taxpayers	32.5%	32.5%
	Additional rate taxpayers	38.1%	37.5%

Trusts:	Standard rate band generally	£1,000	£1,000
	Rate applicable to trusts (dividends)	38.1%	37.5%
	Rate applicable to trusts (other income)	45%	45%

* Not available if taxable non-savings income exceeds the starting rate band.

Child benefit charge
1% of benefit per £100 of income between £50,000 and £60,000.