Income Tax

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Income Tax

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Income Tax: rates 2018-2019

Taxable income	Rate of income tax	Notes	Useful links	Statutory reference	Last updated	Author
£0 to £11,850	0%	This takes into account the personal allowance of £11,850	Wikipedia notes on "Personal allowance".	Income Tax Act 2007 s.35	22 November 2018	HJS
£11,851 to £46,350	20% (basic rate)	This takes into account the personal allowance of £11,850	rates of income tax from 1990-2018/19	Income Act 2007 s.6 and Finance Act 2018 s.3	22 November 2018	HJS
£46,351 to £150,000	40% (higher rate)	This takes into account the personal allowance of £11,850	rates of income tax from 1990-2018/19	Income Act 2007 s.6 and Finance Act 2018 s.3	22 November 2018	HJS
above £150,000	45% (additional rate)	This takes into account the personal allowance of £11,850	rates of income tax from 1990-2018/19	Income Act 2007 s.6 and Finance Act 2018 s.3	22 November 2018	HJS

Income Tax: rates 2019-2020

Taxable income band	Rate of income tax	Notes	Useful links	Statutory reference	Last updated	Author
£0 to £12,500	0%	This takes into account the personal allowance of £12,500	Wikipedia notes on "Personal allowance".	Income Tax Act 2007 s.35 and Budget 29th Oct 2018	22 November 2018	HJS
£12,501 to £47,500	20% (basic rate)	This takes into account the personal allowance of £12,500	UK Gov't notes on Income Tax 2019-20	Income Act 2007 s.6 and Budget 29th Oct 2018	22 November 2018	HJS
£47,501 to £150,000	40% (higher rate)	This takes into account the personal allowance of £12,500	UK Gov't notes on Income Tax 2019-20	Income Act 2007 s.6 and Budget 29th Oct 2018	22 November 2018	HJS
above £150,000	45% (additional rate)	This takes into account the personal allowance of £12,500	UK Gov't notes on Income Tax 2019-20	Income Act 2007 s.6 and Budget 29th Oct 2018	22 November 2018	HJS

Income Tax - tax free allowances 2018-2019

Type of allowance	Amount	Notes	Useful links	Statutory reference	Last updated	Author
Personal	£11850	reduces by £1 for every £2 of income above £100,000 (so no personal allowance if taxable income exceeds £123,700)	Wikipedia notes on "Personal allowance".	Income Tax Act 2007 s.35	22 November 2018	HJS
Blind person's	£2390	This allowance is transferable to the spouse/civil partner of the person affected.	UK Gov't notes on "Blaind Person's Allowance" and RNIB notes on benefits and support	Income Tax Act 2007 and ss.38-40	22 November 2018	HJS
Rent a room	£7500	for owner occupiers or tenants letting out furnished accommodation to a lodger in their main home (as an alternative to calculating net income)	UK Gov't notes on the Rent a Room Scheme and Money Advice Service notes	Income Tax (Trading and Other Income) Act 2005 ss.784 - 802	22 November 2018	HJS
Marriage Allowance	£1,190 (max)	low income only - a spouse/civil partner can transfer part of their personal allowance to the other if income is less than the personal allowance and the other pays tax at basic rate.	UK Gov't notes on "Marriage Allowance" and YogaTax notes on Marriage allowance and married couple's allowance	Income Tax Act 2007 ss.55A - 55E (introduced by Finance Act 2014 s.11)	23 November 2018	HJS
Married Couple's Allowance	£3,360 to £8,695	One partner must have been born before 6th April 1935	UK Gov't notes on "Married Couples Allowance"	Income Tax Act 2007 ss.45-46	23 November 2018	HJS
Pension contributions	Annual allowance: £40,000. Life time limit £1.03m	For tax years from 2016-2017 those with income above £150,000 have their annual allowance reduced on a tapered basis	Money Advice Service notes on tax relief on pension contributions and UK Gov't notes "Tax on your private pension contributions"	Finance Act 2004 ss.214 - 238 and Finance (No 2) Act 2015 sch 4	23 November 2018	HJS
Charity donations	No limit	Those who pay tax at above the 20% basic rate can claim back the difference between tax paid on the donation and what the charity got back under "Gift Aid".	Gov't notes "Tax relief when you donate to a charity"	Income Tax Act 2007 ss.413 - 430	23 November 2018	HJS
Maintenance payments	10% of payment or £326 pa whichever is less	Maintenance Payments Relief reduces Income Tax of those who make maintenance payments to an ex-spouse or civil partner provided one of them was born before 6 April 1935.	Gov't notes on "Maintenance Payments: Tax relief"	Income Tax Act 2007 ss.453 - 456	23 November 2018	HJS

Income Tax - tax free allowances 2019-2020

Type of allowance	Amount	Notes	Useful links	Statutory reference	Last updated	Author
Personal	£12,500 (proposed)	reduces by £1 for every £2 of income above £100,000 (so no personal allowance if taxable income exceeds £125,000)	Willis Towers Wason notes on UK Budget 29 Oct 2018	Income Tax Act 2007 s.35 and Budget 29th Oct 2018	22 November 2018	HJS
Blind person's	£2450	This allowance is transferable to the spouse/civil partner of the person affected.	UK Gov't notes on "Blaind Person's Allowance" and RNIB notes on benefits and support	Income Tax Act 2007 ss.38-40 and Budget 29th Oct 2018	22 November 2018	HJS
Rent a room	£7500	for owner occupiers or tenants letting out furnished accommodation to a lodger in their main home (as an alternative to calculating net income)	UK Gov't notes on the Rent a Room Scheme and Money Advice Service notes	Income Tax (Trading and Other Income) Act 2005 ss.784 - 802	22 November 2018	HJS
Marriage Allowance	£1,250 (max)	low income only - a spouse/civil partner can transfer part of their personal allowance to the other if income is less than the personal allowance and the other pays tax at basic rate.	UK Gov't notes on "Marriage Allowance" and YogaTax notes on Marriage allowance and married couple's allowance	Income Tax Act 2007 ss.55A - 55E (introduced by Finance Act 2014 s.11) and Budget 29th Oct 2018	23 November 2018	HJS
Married Couple's Allowance	£3,450 to £8,915	One partner must have been born before 6th April 1935	UK Gov't notes on "Married Couples Allowance"	Income Tax Act 2007 ss.45-46	23 November 2018	HJS
Pension contributions	Annual allowance:£40,000 (proposed) Life time limit £1.055m (proposed)	For tax years from 2016-2017 those with income above £150,000 have their annual allowance reduced on a tapered basis	Money Advice Service notes on tax relief on pension contributions and Willis Towers Wason notes on UK Budget 29 Oct 2018	Finance Act 2004 ss.214 - 238 and Finance (No 2) Act 2015 sch 4 and Budget 29th Oct 2018	23 November 2018	HJS
Charity donations	No limit	Those who pay tax at above the 20% basic rate can claim back the difference between tax paid on the donation and what the charity got back under "Gift Aid".	Gov't notes "Tax relief when you donate to a charity"	Income Tax Act 2007 ss.413 - 430	23 November 2018	HJS
Maintenance payments	10% of payment or £326 pa (whichever is less)	Maintenance Payments Relief reduces Income Tax of those who make maintenance payments to an ex-spouse or civil partner provided one of them was born before 6 April 1935.	Gov't notes on "Maintenance Payments: Tax relief"	Income Tax Act 2007 ss.453 - 456	23 November 2018	HJS

Income tax rates 2018-2019 (6th April 2018 to 5th April 2019)
Income tax rates 2019-2020 (6th April 2019 to 5th April 2020)
Income Tax allowances 2018-2019 (6th April 2018 to 5th April 2019)
Income Tax allowances 2019-2020 (6th April 2019 to 5th April 2020)

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For Budget 29th October 2018 proposed tax rates for 2019/2020 generally go to:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/754766/Annex_A_rates_and_allowances.pdf

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