Income Tax Rates and Bands

Recent income tax rates and bands are as follows:

	2021/22	2022/23	2023/24	2024/25
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 £1,000	Up to £500
Basic rate: 20%	Up to £37,700	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 - £125,140	£37,701 - £125,140
Additional rate: 45%	Over £150,000	Over £150,000	Over £125,140	Over £125,140

When the personal allowance (£12,570) 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. Reforms to the Scottish tax system led to a new Advanced band of income tax coming into force from 6 April 2024, meaning the country moves further away from the set up in the rest of the UK.

The new rates and thresholds from April 2024 look like this.

	Tax rate	Income thresholds
Personal allowance	0%	Up to £12,570
Starter Rate	19%	£12,571 to £14,876
Basic Rate	20%	£14,877 to £26,561
Intermediate Rate	21%	£26,562 to £42,662
Higher Rate	42%	£43,663 to £75,000
Advanced Rate	45%	£75,001 to £125,140
Top Rate	48%	Over £125,140

This is how the rates and thresholds looked prior to the changes:

	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