No changes to UK tax rates and dividend tax
Post Author:
Anne Melville
Date Posted:
November 26, 2018
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The basic rate of income tax and higher rate remain at 20% and 40% respectively, and the 45% additional rate continues to apply to income over £150,000 for UK taxpayers.
Note that Scottish tax rates and bands are currently different from the rest of the UK. The Scottish Government’s 2018 Budget is scheduled for 12 December 2018 and we will find out then what the plans are for the 2019/2020 Scottish tax rates and bands.
In advance of the UK Budget there had been rumours that the dividend rate would be increased. However no changes were announced and dividends continue to be taxed at 7.5%, 32.5% and then 38.1%, depending upon whether the dividends fall into the basic rate band, higher rate band or the additional rate. Note that, with effect from 6 April 2018, only the first £2,000 of dividend income is now tax free.
Personal allowance and UK higher rate tax limit increased early
