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Tax Rates & Allowances

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Income Tax Rates and Bands

Recent income tax rates and bands are as follows:

  2020/21 2021/22 2022/23 2023/24
Savings rate: 0% Up to £5,000 Up to £5,000 Up to £5,000 Up to £5,000
Dividend Allowance: 0% Up to £2,000 Up to £2,000 Up to £2,000 Up to £1,000
Basic rate: 20% Up to £37,500 Up to £37,700 Up to £37,700 Up to £37,700
Higher rate: 40% £37,501 - £150,000 £37,701 - £150,000 £37,701 - £150,000 £37,701 - £125,140
Additional rate: 45% Over £150,000 Over £150,000 Over £150,000 Over £125,140

When the personal allowance is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,270. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.

Scottish Income Tax Rates and Bands

Scottish income tax applies to non-savings and non-divdend income

  2020/21 2021/22 2022/23 2023/24
Starter rate: 19% Up to £2,085 Up to £2,097 Up to £2,162 Up to £2,162
Basic rate: 20% £2,086 to £12,658 £2,098 to £12,726 £2,163 to £13,118 £2,163 to £13,118
Intermediate rate: 21% £12,659 to £30,930 £12,727 to £31,092 £13,119 to £31,092 £13,119 to £31,092
Higher rate: 42% £30,931 to £150,000 £31,093 to £150,000 £31,093 to £150,000 £31,093 to £125,140
Additional rate: 46% (47% from 6 April 2023) Over £150,000 Over £150,000 Over £150,000 Over £125,140

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