Personal Allowance changes take place this year – how to check tax impact | Personal Finance | Finance


What are the current Income Tax rates and bands?

The Personal Allowance currently covers taxable income up to £12,500. It has a tax rate of zero percent.

At the moment, the Basic rate band applies to taxable income of £12,501 to £50,000. The tax rate applied to taxable income in this band is 20 percent.

Taxable income between £50,001 and £150,000 fits into the Higher rate band – with this rate being 40 percent.

Additional rate taxpayers pay a rate of 45 percent on taxable income that is over £150,000.

Those who have a taxable income of more than £125,000 don’t get a Personal Allowance.

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