Tax Facts - Income Tax

Income Tax Rates

2016/17

2015/16

Band £	Rate %	Band £	Rate %
0-5,000	0%*	0-5,000	10%*
0-32,000	20%**	0-31,785	20%**
32,001-150,000	40%***	31,786-150,000	40%***
Over 150,000	45%****	Over 150,000	45%****

* Only applicable to savings income, The rate is not available if taxable non-savings income exceeds £5,000 For 2016/17, £1000 of savings income for basic rate

** Except dividends 7.5%(0%)

*** Except dividends 32.5% (25%)

****Except dividends 38.1% (30.6%)

Other income taxed first, then savings and finally dividends. For 2016/17 the first £5000 of dividends are tax free

Personal Allowance	2016/17 (£)	2015/16 (£)
General - born after 5 April 1938	**11,000	**10,600
Born before 6 April 1938*	**11,000	**10,660
Income limit	100,000	100,000
Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000
**£1,100( £1,060) may be transferable between certain spouses where neither pay tax above the basic rate

Married couple's allowance* (relief at 10%)	2016/17 (£)	2015/16 (£)
Either partner 75 or more and born before 6.4.1935	8,355	8,355
Age allowance income limit	27,700	27,700
Minimum where income exceeds limit	3,220	3,220
Reduce age allowance by £1 for every £2 of adjusted net income over £27,700

	2016/17 (£)	2015/16 (£)
Blind person's allowance	2,290	2,290

*Available for civil partners