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Income tax — Rates

UK Rate of Income Tax

2019/20 2018/19
Tax payer Rate Income Rate Income
Basic 20% £12,500 to £50,000 20% £11,850 to £46,350
Higher 40% £50,001 to £150,000 40% £46,351 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

Income tax is a partially devolved 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 2019/20 2018/19
Rate Income Rate Income
Starter 19% £12,500 to £14,549 19% £11,851 to £13,850
Basic 20% £14,550 to £24,944 20% £13,851 to £24,000
Intermediate 21% £24,945 to £43,430 21% £24,001 to £43,430
Higher 41% £43,431 to £150,000 40% £43,431 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.

Welsh Rate of Income Tax

As income tax has been partially devolved, with effect from 6 April 2019 the Welsh Assembly has the power to set the Welsh Rate of Income Tax (WRIT) on non-savings, non-dividend income for Welsh taxpayers.

The UK government has reduced the rates of UK income tax paid in Wales by 10% but as the Welsh Assembly has determined that the WRIT for 2019/20 will be set at 10% a Welsh taxpayer will continue to pay the same rates of income tax as taxpayers in England and Northern Ireland.

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

UK rate for England & Northern Ireland Taxable income UK rate paid in Wales Welsh rate Total rate for Welsh taxpayers
Basic rate 20% £12,500 to £50,000 10% 10% 20%
Higher rate 40% £50,001 to £150,000 30% 10% 40%
Additional rate 45% Above £150,000 35% 10% 45%

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

The UK Treasury will retain control of personal allowances and reliefs, and the taxation of savings and dividend income.