Personal Allowance

The personal tax allowance for 2017-18 will be £11,500, for individuals with this tax allowance the code will show as 1150L. Although this is due to be the standard tax code for 2017-18 some individuals will be on a different code depending on their circumstances, have a look at our tax codes article for more information.

For the 2017-18 tax year individuals on the standard tax code will not start paying tax at 40% unless their earnings exceed £45,000, this is the greatest amount someone can earn before paying 40% tax since 2010-11, the last 7 years have seen a decrease in the higher rate threshold in both real and actual terms.

The below table shows the rate bandings from 2010-11 to those for 2017-18, the bandings for future years will be confirmed closer to the time.

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Tax Rate
Personal Allowance £6,475 £7,475 £8,105 £9,440 £10,000 £10,600 £11,000 £11,500 0%
Basic Rate Threshold £37,400 £35,000 £34,370 £32,010 £31,865 £31,785 £32,000 £33,500 20%
Higher Rate Threshold £43,875 £42,475 £42,475 £41,450 £41,865 £42,385 £43,000 £45,000 40%
Additional Rate Threshold £150,000 £150,000 £150,000 £150,000 £150,000 £150,000 £150,000 £150,000 45%

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