Income Tax bands rates and the dividend allowance

November 29th 2017

The Income Tax bands for 2018-19 have been increased. They are:

  • Basic rate band increased to £34,500 (2017-18 £33,500)
  • Higher rate band £34,501 to £150,000 (2017-18 £33,501 to £150,000)
  • Additional rate, no change, applies to income of more than £150,000.

There is no change in Income Tax rates, and the tax rates applied to dividend income. Readers should note that the present £5,000 tax-free dividend allowance will, as previously announced, be reducing to £2,000 from April 2018.

The Scottish parliament sets the basic rate limit for Scotland meaning that higher rate taxpayers may pay more tax in 2018-19.