Income Tax Data

Rates of Income Tax

Income tax is assessed on slices of taxable income at varying rates.

"Taxable income" is, broadly, all income, grossed up when appropriate, less reliefs, allowances and other deductions.

For 2015/16, dividends otherwise taxable at the 20% basic rate were taxed at the 10% dividend ordinary rate and dividends otherwise taxable at the 40% higher rate were taxable at the 32.5% dividend upper rate. Dividends otherwise taxable at the 45% additional higher rate were taxable at the 37.5% dividend additional rate.