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Income tax UK

UK taxation system has been undergoing changes and improvements all through its long history. Both individuals and legal entities have to pay tax on their income and profit. Income tax applies to individuals.


Income tax is paid on the income earned by you during a tax year minus a non-taxable personal allowance, subject to limitations.

Average income tax is £5,000. The standard Personal Allowance is £11,850, but it may be bigger if you claim Marriage Allowance or Blind Person’s Allowance. It’s smaller if your income is over £100,000. And the Personal Allowance is increased annually.

Income tax rate

Income tax rate progresses as the taxable amount increases. It means that higher earners have to pay higher income tax. Basic rate is 20% and it progresses to 45% maximum.

Tax residents must pay tax on their worldwide income while non-residents must pay tax only on the income earned in or brought to England.

Tax rates and bands for 2018-19


Band Taxable income Tax rate
Personal Allowance Up to £11,850 0%
Basic rate £11,851 to £46,350 20%
Higher rate £46 351 to £150,000 40%
Additional rate Over £150,000 45%

Income tax optimisation with Imperial & Legal

We have expertise in finances, accounting, law and other areas. Our experts have vast knowledge of the UK taxation system which enables them to optimise UK income tax and other taxes and duties. We guarantee individual approach and tailor-made solutions that would meet your requirements.

If you have any questions, please contact our specialists or call us on +44 (0)203 490 41 21.

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