Learn how different types of income are taxed and how they fit into an individual’s income tax calculation.
- The Scottish Parliament has the power to set income tax rates and bands that apply to Scottish taxpayers’ non-savings, non-dividend income
- From April 2019, the Welsh Government has the power to set income tax rates applicable to non-savings and non-dividend income for Welsh taxpayers
- In 2020/21, the Welsh rates of income tax are such that the rates of income tax paid remain the same as those paid by English and NI taxpayers
- From April 2016, the government abolished the dividend tax credit and introduced a dividend nil rate which is currently £2,000
- From April 2016, a tax-free personal savings ‘allowance’ (nil rate) of £1,000 was introduced. This is reduced for individuals with higher or additional rate income
- Interest paid by banks, building societies and open ended investment companies is paid gross