Income tax and personal savings

The Chancellor announced a bringing forward of the planned increases in the personal allowance and the higher rate threshold for income tax.

Income tax rates and bands

2019/20 2018/19
Band £ Rate % Band £ Rate %
0 - 37,500 20 0 - 34,500 20
37,501 - 150,000 40 34,501 - 150,000 40
Over 150,000 45 Over 150,000 45

Savings income     

Savings Allowance 2019/20 2018/19
Basic rate £1,000 £1,000
Higher rate £500 £500

A starting rate for savings band of £5,000 at 0% may be available unless taxable non-savings income exceeds the starting rate band.

Dividend income

Allowance/Rate 2019/20 2018/19
Dividend allowance £2,000 £2,000
Dividend ordinary rate 7.5% 7.5%
Dividend upper rate 32.5% 32.5%
Dividend additional rate 38.1% 38.1%

Personal allowances

  2019/20 2018/19
Personal allowance £12,500 £11,850
Personal allowance income limit £100,000 £100,000
Marriage allowance
Transferable between certain spouses where neither pay tax above the basic rate
£1,250 £1,190
Married couple's allowance (MCA) (relief given at 10%)
Either partner born before 6 April 1935
£8,950 £8,695
- minimum amount £3,450 £3,360
- income limit £29,600 £28,900
Blind person's allowance £2,450 £2,390

Scottish income tax rates and bands

Rates and bands for 2019/20 will be announced in the Scottish Budget.

2018/19
Band £ Rate %
0 - 2,000 19
2,001 - 12,150 20
12,151 - 31,580 21
31,581 - 150,000 41
Over 150,000 46

Welsh income tax rates

From 6 April 2019, the UK government will reduce the basic, higher and additional rates of income tax paid by Welsh taxpayers by 10%, and three Welsh rates of income tax will then be added to the reduced UK rates. The Welsh government proposes to set the first Welsh rates at 10%.

Individual Savings Accounts (ISAs)

Individuals can invest in any combination of cash or stocks and shares up to the overall annual ISA subscription limit. However, a saver may only pay into a maximum of one Cash ISA, one Stocks and Shares ISA, one Innovative Finance ISA and one Lifetime ISA. The overall investment limit for 2019/20 is £20,000 (£4,368 for junior accounts).

Home | Contact us | Accessibility | Disclaimer | GDPR (including Standard Terms of Business) | Help | Site map |

© 2019 BPU Accountants. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


BPU Chartered Accountants is the trading name of BPU Ltd Company number 3723948 registered in Wales. Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.

BPU Financial Solutions Ltd is an Appointed Representative of ValidPath Limited which is authorised and regulated by the Financial Conduct Authority. ValidPath Limited is entered on the Financial Services register (www.fca.org.uk/register) under reference 197107.

BPU Accountants, Radnor House, Greenwood Close, Cardiff Gate Business Park, Cardiff CF23 8AA
BPU Accountants, The Counting House, Pound Field, Llantwit Major, Vale of Glamorgan CF61 1DL