Income tax Bands and Rates

 

2016-17 2015-16
Taxable Bands(£) Rate Taxable Bands(£) Rate
Upto £5,000
Starting rate for savings
10% Upto £5,000
Starting rate for savings
10%
Upto £32,000
Basic rate
20% Upto £31,785
Basic rate
20%
£32,001 - £150,000
Higher rate
40% £31,786 - £150,000
Higher rate
40%
Over 150,001
Additional rate
45% Over 150,001
Additional rate
45%

 

Dividends

Tax on dividends from April 2016

Tax band Tax rate on dividends over £5,000
Basic rate 7.5%
Higher rate 32.5%
Additional rate 38.1%

 

Other income is taxed first, then savings and then dividends.

 

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