The Chancellor announced a bringing forward of the planned increases in the personal allowance and the higher rate threshold for income tax.
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
Savings Allowance | 2019/20 | 2018/19 |
---|---|---|
Basic rate | £1,000 | £1,000 |
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
Allowance/Rate | 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 | £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 |
£8,950 | £8,695 |
– minimum amount | £3,450 | £3,360 |
– income limit | £29,600 | £28,900 |
Blind person’s allowance | £2,450 | £2,390 |
Scottish income tax rates and bands
Rates and bands for 2019/20 will be announced in the Scottish Budget.
2018/19 | |
---|---|
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).