Notes

1. PA is reduced by £1 for every £2 by which Adjusted Net Income (ANI)
   exceeds £100,000, so PA is nil when ANI is £125,140.
2. ANI is total taxable income, less qualifying pension contributions and Gift
   Aid donations.
3. Marriage allowance is the transferable part of the PA and is available only
   to married couples and civil partners born after 5 April 1935. It can be
   transferred to their spouse or civil partner as long as the recipient is not a
   higher or additional rate taxpayer.
4. The rent-a-room exemption is available where the taxpayer lets out part of
   the home they live in as furnished residential accommodation.
5. The trading and property income allowances have various conditions that
   restrict their availability.
6. Where rent-a-room, trading or property income exceed the relevant limit
   above, that limit (rather than expenses) may be deducted from gross
   income.

Notes

1. The BRB (Scotland: intermediate rate band) and additional rate threshold
   are extended by the grossed-up equivalent of personal pension
   contributions and Gift Aid donations paid by the taxpayer in the tax year, or
   treated as paid in the tax year.
2. Taxable income usually uses up the rate bands in the following order:

• G ‘General income’ (employment, pensions, business profits, rent)
• S ‘Savings income’ (mainly interest)
• D ‘Dividends’ (distributions from companies/most unit trusts)

1. The savings rate band is part of the basic rate band, meaning that to the
   extent that savings income falls in the first £5,000 of the basic rate band, it
   is taxed at nil rather than 20%.
2. Different bands and rates apply to general income in Scotland