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.
Talk to Barnes Roffe today
Share this page:
Contact Us
ICAEW The Chartered Institute of Taxation ACCA IPG IR