Personal Allowance (PA)*£12,500£11,850
Marriage Allowance†1,2501,190
Blind Person’s Allowance2,4502,390
Rent a room relief**7,5007,500
Trading income**1,0001,000
Property income**1,0001,000

* PA will be withdrawn at £1 for every £2 by which ‘adjusted income’ exceeds £100,000. There is no allowance given above £125,000 (2018/19: £123,700).

† The part of the PA that is transferable to a spouse or civil partner who is not a higher or top rate taxpayer.

** If gross income exceeds it, the limit may be deducted instead of actual expenses.

Rate bands2019/202018/19
Basic rate band (BRB)£37,500£34,500
Higher Rate Band (HRB)37,501 – 150,00034,501 – 150,000
Additional rateover 150,000over 150,000
Personal Savings Allowance (PSA)
– Basic rate taxpayer1,0001,000
– Higher rate taxpayer500500
Dividend Allowance (DA)2,0002,000

BRB and additional rate threshold are increased by personal pension contributions (up to permitted limit) and Gift Aid donations.

Tax rates2019/20 and 2018/19
Rates differ for General, Savings and Dividend incomeGSD
Basic rate20%20%7.5%
Higher rate40%40%32.5%
Additional rate45%45%38.1%

General income (salary, pensions, business profits, rent) usually uses personal allowance, basic rate and higher rate bands before savings income (interest). Scottish taxpayers are taxed at different rates on general income (see below).

To the extent that savings income falls in the first £5,000 of the basic rate band, it is taxed at nil rather than 20%.

The PSA taxes interest at nil, where it would otherwise be taxable at 20% or 40%.

Dividends are normally taxed as the ‘top slice’ of income. The DA taxes the first £2,000 of dividend income at nil, rather than the rate that would otherwise apply.

Income tax – Scotland2019/202018/19
Starter Rate19%£2,049£2,000
Basic Rate20%2,050 – 12,4442,001 – 12,150
Intermediate Rate21%12,445 – 30,93012,151 – 31,580
Higher Rate41%30,931 – 150,00031,581 – 150,000
Top Rate46%over 150,000over 150,000

The Scottish rates and bands do not apply for savings and dividend income, which are taxed at normal UK rates.

High Income Child Benefit Charge (HICBC)

1% of child benefit for each £100 of adjusted net income between £50,000 and £60,000.

Remittance basis charge2019/202018/19
For non-UK domiciled individuals who have been 
UK resident in at least:
7 of the preceding 9 tax years£30,000£30,000
12 of the preceding 14 tax years60,00060,000
15 of the preceding 20 tax yearsDeemed to be UK domiciled