Income tax and personal savings
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).