Main income tax rates and allowances

Data published as at 23 November 2016

Main income tax allowances	2016/17	2017/18
	£	£
Personal (basic)	11,000	11,500
Personal reduced by £1 for every £2 of net income over	100,000	100,000
Married couples’ / civil partners’ transferable allowance	1,100	1,150
Married couples’ / civil partners’ allowance at 10% - maximum *1	8,355	8,445
(if at least one born before 6/4/35) - minimum *1	3,220	3,260
Blind person’s allowance	2,290	2,320
Registered pension scheme: > Annual allowance *2	£40,000	£40,000
Money purchase annual allowance	£10,000	£4,000
Lifetime allowance	£1,000,000	£1,000,000
Notes: *1 Reduced by £1 for every £2 of income over £28,000(2017/18) or £27,700 (2016/17), until basic reached. *2 Subject to 50% taper down to £10,000 if threshold income over £110,000 and adjusted income over £150,000.
Income tax rates and bands	2016/17	2017/18
Starting rate of 0% on savings income up to *3 Savings allowance at 0% tax	£5,000	£5,000
Basic rate taxpayers	£1,000	£1,000
Higher rate taxpayers	£500	£500
Additional rate taxpayers	£0	£0
Basic rate of 20% on income up to *4	£32,000	£33,500
Higher rate of 40% on income up to £150,000 above *4	£32,000	£33,500
Additional rate of 45% on income over	£150,000	£150,000
Dividends Dividend allowance	£5,000	£5,000
Dividends rates: Basic rate taxpayers	7.5%	7.5%
Dividends rates: Higher rate taxpayers	32.5%	32.5%
Dividends rates: Additional rate taxpayers	38.1%	38.1%
Trusts: Standard rate band generally	£1,000	£1,000
Rate applicable to trusts: dividends	38.1%	38.1%
Other income	45%	45%
Child Benefit Charge: 1% of benefit per £100 of income between £50,000 and £60,000
Notes: 3 Not available if taxable non-savings income exceeds the starting rate band. 4 A different basic rate band may apply for 2017/18 for Scottish taxpayers.