The standard personal allowance limits

The standard personal allowance (the amount you can normally earn before paying tax) will increase to £12,500 in 2019/20.

If your taxable income is less than the personal allowance then you won’t pay any tax, although different rules apply if you earn over £100,000 per annum or claim marriage allowance or blind persons’ allowance.

Where you live in the UK will determine the rate of income tax you pay on your pension, therefore it is important that you keep us and HM Revenue and Customs (HMRC) informed if you move address.

If your total income takes you over £12,500 then the amount over this is taxed.

Income tax rates and bands for 2019/20 for taxpayers in England

IncomeTax band
Up to £12,500 N/a
£12,500 to £50,000 20% income tax
£50,001 to £150,000 40% income tax
Over £150,000 45% income tax

 

Income tax rates and bands for 2019/20 for taxpayers in Scotland

IncomeTax band
Up to £12,500 N/a
£12,500 - £14,549 19% income tax
£14,549 to £24,944 20% income tax
£24,944 - £43,430 21% income tax
£43,430 - £150,000 41% income tax
Over £150,000 46% income tax

 

Income tax rates and bands for 2019/20 for taxpayers in Wales

IncomeTax band
Up to £12,500 N/a
£12,500 to £50,000 20% income tax
£50,001 to £150,000 40% income tax
Over £150,000 45% income tax