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.
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