Rate Band:
2015 / 16
2016 / 17
Basic rate band – income up to
£31,785
£32,000
Starting rate for savings income
*0%
*0%
Basic Rate
20%
20%
Dividend ordinary rate
10%
**7.5%
Higher rate – income over
£31,785
£32,000
Higher rate
40%
40%
Dividend upper rate
32.5%
**32.5%
Additional rate – income over
£150,000
£150,000
Additional rate
45%
45%
Dividend additional rate
37.5%
**38.1%
Starting rate limit (savings income)
*£5,000
*£5,000

For 2016/17 Scottish taxpayers effectively subject to the same income tax rates as rest of UK. *If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate limit for savings will not be available for savings income. For 2016/17, £1,000 of savings income for basic rate taxpayers (£500 for higher rate) may be tax-free. **For 2016/17 the first £5,000 of dividends are tax-free.