Bands of Taxable Income & Tax Rates

Bands of taxable income and corresponding tax rates

  2014-15 2015-16
Per cent of income / £ a year year
Basic rate 20% 20%
Higher rate 40% 40%
Additional rate 45% 45%
Starting rate for savings income (*) 10% 0%
Dividend ordinary rate 10% 10%
Dividend upper rate 32.5% 32.5%
Dividend additional rate 37.5% 37.5%
Trust rate 45% 45%
Starting rate limit (savings income) £2,880 £5,000
Basic rate band £0 – 31,865 £0 – 31,785
Higher rate band £31,866 – 150,000 £31,786 – 150,000
Additional rate band Over £150,000 Over £150,000

 

(*) From 2008-09 there is a starting rate for savings income only. If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate for savings will not be available for savings income.