For the tax year 2017/2018 the personal allowance for an individual is £11,500 and the basic rate tax limit is £33,500. The additional higher rate is 45% on income over £150,000 and the saving rate is £5,000.
In line with the government’s objective to raise the personal allowance and the higher rate threshold to £12,500 and £50,000 respectively by the end of this parliament, it was announced that the personal allowance for individuals will be increased to £11,850 with the basic rate band being increased to £46,350, with effect from 6 April 2018
The additional higher rate of 45% remains unchanged from 2017/2018 and will be operated all income over £150,000.
The savings rate remains unchanged from 2017/2018.
The measure will reduce the income tax burden for 29.3 million income taxpayers in 2018/19, encouraging more individuals to enter the workplace and also increasing disposable household incomes.