| Income Tax | 1 | 2016/17 | 2015/16 | | Starting rate limit (savings income) | 2 | *£5,000 | *£5,000 | | Starting rate | 2 | *0% | *0% | | Basic rate band - income up to | £32,000 | £31,785 | | Basic rate | 20% | 20% | | Dividend ordinary rate, otherwise taxable at basic rate | ***7.5% | 10% (0%**) | | Higher rate - income over | £32,000 | £31,785 | | Higher rate | 40% | 40% | | Dividend upper rate, otherwise taxable at higher rate | ***32.5% | 32.5% (25%**) | | Additional rate - income over | £150,000 | £150,000 | | Additional rate | 45% | 45% | | Dividend upper rate, otherwise taxable at additional rate | ***38.1% | 37.5% (30.6%**) | | For 2016/17 Scottish taxpayers are effectively subject to the same income tax rates as the rest of the UK. * If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate will not be available for savings income. For 2016/17, £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free. ** Effective rate with tax credit *** For 2016/17 the first £5,000 of dividends are tax-free | | Personal allowance (PA) | | Born after 5 April 1938 | 3 | £11,000 | £10,600 | | Born before 6 April 1938 | 4 | £11,000 | £10,660 | | Income limit for PA | 3 | £100,000 | £100,000 | | Income limit for PA (Born before 6 April 1938) | 4 | £27,700 | £27,700 | | Blind person's allowance | | £2,290 | £2,290 | | Married couple's allowance (MCA) | | Either partner born before 6 April 1935 (relief restricted to 10%) | 5 | £8,355 | £8,355 | | Transferable tax allowance ('Marriage Allowance') | | For certain married couples (relief 20%) | 6 | £1,100 | £1,060 | | Tax Shelters | | Venture Capital Trust (VCT) up to | £200,000 | £200,000 | | Enterprise Investment Scheme (EIS) up to | £1,000,000 | £1,000,000 | | Seed Enterprise Investment Scheme up to | £100,000 | £100,000 | | Social Investment Tax Relief | £1,000,000 | £1,000,000 | | Golden Handshake max. | £30,000 | £30,000 | |
