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Income tax — Rates

UK Rate of Income Tax

2018/19 2017/18
Tax payer Rate Income Rate Income
Basic 20% £11,850 to £46,350 20% £11,500 to £45,000
Higher 40% £46,351 to £150,000 40% £45,001 to £150,000
Additional 45% Above £150,000 45% Above £150,000

These are the main rates which apply to earnings from employment, self-employment, pensions, foreign income, taxable benefits and income from property. Different rates may apply to unearned income, such as interest on savings and dividend income.

Scottish Rate of Income Tax

For non-savings and non-dividend income the Scottish Parliament has the power to set all income tax thresholds, except the personal allowance, as well as the Scottish Rate of Income Tax (SRIT) for Scottish taxpayers.

The income tax rates and bands for Scottish taxpayers are set out below.

Tax payer 2018/19 2017/18
Rate Income Rate Income
Starter 19% £11,851 to £13,850
Basic 20% £13,851 to £24,000 20% £11,501 to £43,000
Intermediate 21% £24,001 to £43,430
Higher 41% £43,431 to £150,000 40% £43,001 to £150,000
Top/Additional 46% Above £150,000 45% Above £150,000

The definition of a Scottish tax payer is based on where an individual resides not where they work, so if an individual works in England but resides in Scotland the employer is obliged to apply the SRIT. HMRC informs employers when they need to apply the SRIT by issuing a Scottish tax code and appropriate tax tables.