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CLIENTS page
CLIENTS page
Income Tax Rates
|
INCOME TAX RATES - ENGLAND, WALES & NI - non-dividend income |
Tax rate |
2025/26 |
2024/25 |
Notes |
|
Savings starting rate |
0% |
£0-£5,000 |
£0-£5,000 |
Only available if non-savings income is less than this amount. |
|
Basic rate |
20% |
£12,571-£50,270 |
£12,571-£50,270 |
0% tax rate applies up to the personal allowance of £12,570. The tax bands are increased by gross pension and gross gift aid payments, thus giving you tax relief at higher rates. |
|
Higher rate |
40% |
£50,271-£125,140 |
£50,271-£125,140 | |
|
Additional rate |
45% |
> £125,140 |
> £125,140 | |
|
The additional rate threshold reduced from £150,000 to £125,140 from 6.4.2023. The Basic rate of income tax will be maintained at 20% from 6.4.2024. | ||||
|
INCOME TAX RATES - dividend income |
2025/26 |
2024/25 |
Notes |
|
Starting rate |
0% (to £500) |
0% (To £500) |
Any dividend income over the allowance is treated as the highest part of a taxpayer’s income to determine which tax band it falls into for the purpose of calculating the tax on divis. The starting rate (dividend allowance) reduces to £500 from April 2024. |
|
Dividends within basic rate band |
8.75% |
8.75% | |
|
Dividends at higher rate band |
33.75% |
33.75% | |
|
Dividends at additional rate band |
39.35% |
39.35% |
|
SCOTTISH INCOME TAX RATES non-dividend income |
Tax rate |
2025/26 |
2024/25 |
Notes |
|
Starter rate |
19% |
£12,571-£15,397 |
£12,571-£14,876 |
0% tax rate applies up to the personal allowance of £12,570. You pay Scottish rates of income tax if you live in Scotland. Scottish taxpayers pay the same tax on dividends and savings interest as the rest of the UK. |
|
Basic rate |
20% |
£15,398-£27,491 |
£14,877-£26,561 | |
|
Intermediate rate |
21% |
£27,492-£43,662 |
£25,562-£43,662 | |
|
Higher rate |
42% |
£43,663-£75,000 |
£43,663- £75,000 | |
|
Advanced rate |
45% |
£75,001-£125,140 |
£75,001-£125,140 | |
|
Top rate |
48% |
> £125,140 |
> £125,140 |
|
REMITTANCE BASIS CHARGE - for non UK domiciled persons resident in the UK |
2025/26 |
2024/25 |
Notes |
|
For 7 of the preceding 9 tax years |
The system for non-doms is fundamentally reformed from 6.4.2025 with a new regime in place |
£30,000 |
If a person is not UK domiciled their income/capital gains arising outside the UK will be taxed in the UK on an arising basis. If you want to be taxed on the remittance basis, then you pay the RBC based on the number of years resident in the UK. |
|
For 12 of the preceding 14 tax years |
£60,000 | ||
|
For 15 of the preceding 20 tax years |
Deemed UK domiciled |