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What are the tax bands?

2020/21 Tax Bands for England, Scotland and Wales

Band Band name Tax Rate
Scotland Wales Rest of UK
£12,500* - £14,585 Starter Rate 19%
£12,500 - £50,000 Basic Rate 20% 20%
£14,586* - £25,158 Scottish Basic Rate 20%
£25,159* - £43,430 Intermediate Rate 21%
£43,431 - £150,000 Higher Rate 41%
£50,000 - £150,000 Higher Rate 40% 40%
Above £150,000 Top Rate 46%
Above £150,000 Additional Rate 45% 45%

 

* This assumes you are entitled to the UK Personal Allowance. The starter, basic and intermediate rate bands together for Scottish income tax are £30,930 (£12,500 + £30,930 = £43,430).

These rates apply to TAXABLE income that is over and above your Personal Allowance. For example, a person would have to have income of over £12,500 before paying tax at 20% and over £50,000 (£43,430 in Scotland) before paying at 40%.

Starting Rate for Savings - is 0%. Only applies to those with taxable income under £17,500.

Scottish taxpayers use the UK rates & tax bands for interest and dividends.

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