Chartered Accountants and Business Advisers
Chartered Accountantsand Business Advisers

Income Tax

  2017/18          2016/17
Basic rate band income up to  £33,500   £32,000
Starting rate for savings income *0%   *0%
Basic rate 20%   20%
Dividend ordinary rate **7.5%   **7.5%
Higher rate income over £33,500   £32,000
Higher rate 40%   40%
Dividend upper rate **32.5%   **32.5%
 Additional rate income over £150,000    £150,000 
 Additional rate 45%    45% 
 Dividend additional rate **38.1%    **38.1% 
Starting rate limit (savings income) *£5,000   *£5,000
Personal Allowances      
Basic £11,500   £11,000
Married Couple's Allowance      
Either partner born before 6 April 1935 (relief restricted to 10%)  #£8,445   #£8,355
Transferable Tax Allowance for certain married couples      
(relief 20%) £1,150   £1,100

 

For 2017/18 Scottish taxpayers are subject to different income tax bands to the rest of the UK.  The basic rate band is £31,500, higher rate income is between £31,500 and £150,000 and additional rate income is over £150,000.  The rates of tax are the same as the rest of the UK.

 

* If an individual's taxable non-savings income exceeds the starting rate limit, then the starting rate limit for savings will not be available for savings income.  For 2016/17 and 2017/18, £1,000 of savings income for basic rate taxpayers (£500 higher rate) may be tax-free.  

 

**For 2016/17 and 2017/18 the first £5,000 of dividends are tax-free.

 

#Age related allowances are reduced by £1 for every £2 that adjusted net income exceeds £27,700 in 2016/17 and £28,000 in 2017/18 to a minimum personal allowance of £11,000 in 2016/17 and £11,500 in 2017/18 and to a minimum married couple's allowance of £3,220 in 2016/17 and £3,260 in 2017/18.  Where adjusted net income exceeds £100,000 for both years the basic personal allowance is reduced in the same way until it is reduced to Nil, regardless of the individual's date of birth.

Office hours

Monday - Friday

9.30 am to 5.00 pm

Address

Clive Shedd & Co

Chartered Accountants
232 Sladepool Farm Road  

Birmingham     B14 5EE

Making an appointment

If you wish to make an appointment please contact us:

 

Tel:     0121 474 4774

Fax:    0121 474 4766

Email: mail@cliveshedd.co.uk

or use our contact form.

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