Income Tax TAX RATES AND ALLOWANCES (FA 2020) Normal rates Dividend rates Basic rate 1 to...

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Income Tax TAX RATES AND ALLOWANCES (FA 2020) Normal rates Dividend rates Basic rate 1 to 37,500 20% 7.5% Higher rate 37,501 to 150,000 40% 32.5% Additional rate 150,001 and over 45% 38.1% Savings income nil rate band - Basic rate taxpayers Dividend nil rate band Higher rate taxpayers 1,000 500 2,000 A starting rate of 0% applies to savings income where it falls within the first 5,000 of taxable income. Personal Allowance Personal allowance Transferable amount 12,500 1,250 Personal allowance is reduced by 1 for each 2 by which adjusted net income exceeds 100,000. Where adjusted net income is 125,000 or more, the personal allowance is reduced to zero. Gift Aid Donations & Personal Pension Contributions Amounts of donations and personal pension contributions when net are grossed up as follows: Amount of donations/personal pension contributions paid x 100/80 Income Tax TAX RATES AND ALLOWANCES (FA 2020) Normal rates Dividend rates Basic rate 1 to 37,500 20% 7.5% Higher rate 37,501 to 150,000 40% 32.5% Additional rate 150,001 and over 45% 38.1% Savings income nil rate band - Basic rate taxpayers Dividend nil rate band Higher rate taxpayers 1,000 500 2,000 A starting rate of 0% applies to savings income where it falls within the first 5,000 of taxable income. Personal Allowance Personal allowance Transferable amount 12,500 1,250 Personal allowance is reduced by 1 for each 2 by which adjusted net income exceeds 100,000. Where adjusted net income is 125,000 or more, the personal allowance is reduced to zero. Gift Aid Donations & Personal Pension Contributions Amounts of donations and personal pension contributions when net are grossed up as follows: Amount of donations/personal pension contributions paid x 100/80