Higher Rate of Income Tax Print

For the year 2017/18, the basic rate band has been increased to £33,500 and the higher rate of income tax of 40% (32.5% for dividends) is charged on taxable income between £33,501, and £150,000. For 2018/19 the basic rate band is increasing to £34,500 and the higher rate of income tax of 40% (32.5% for dividends) is charged on taxable income between £34,501, and £150,000.  As a result of the increase in the personal allowance combined with the increase to the basic rate band, an individual whose income for 2017/18 is between £45,000 and £100,000 is better off by £500 for this year. Individuals whose income is over £122,000 for 2017/18 do not benefit from the increase in the personal allowance, but do benefit from the increase to the basic rate band, and the tax saving for the year is £300.

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