2021/22 | 2020/21 | ||
Basic rate band income up to | £37,700 | £37,500 | |
Starting rate for savings income | *0% | *0% | |
Basic rate | 20% | 20% | |
Dividend ordinary rate | **7.5% | **7.5% | |
Higher rate income over | £37,700 | £37,500 | |
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 Allowance | |||
Basic | #£12,570 | #£12,500 | |
Transferable Tax Allowance for certain married couples | |||
(relief 20%) | £1,260 | £1,250 |
For 2020/21 and 2021/22 Scottish taxpayers are subject to different income tax rates and bands to 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 2020/21 and 2021/22, £1,000 of savings income for basic rate taxpayers (£500 higher rate) may be tax-free.
** For 2020/21 and 2021/22 the first £2,000 of dividends are tax-free.
# Where adjusted net income exceeds £100,000 for both years the basic personal allowance is reduced by £1 for every £2 until it is reduced to Nil.