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UK Income Tax Rates

The Income Tax rates and bands for the UK are as follows:

  • Band
  • Taxable Income
  • Tax Rate
  • Personal Allowance
  • Up to £11,500
  • 0%
  • Basic rate
  • £11,500 to £45,000
  • 20%
  • Higher rate
  • £45,001 to £150,000
  • 40%
  • Additional rate
  • Over £150,000
  • 45%

It should be noted that, unlike Australia, the Personal Allowance applies to both resident and non-resident taxpayers. That means that if you own a UK rental property and your net income is less than £11,500, you won’t have to pay any UK income tax. However, if you were resident of Australia, then the net income from the UK property would be subject to tax in Australia.

Under Article 22 of the UK / Australia tax treaty, if you pay income tax in the UK, Australia will allow you a foreign tax credit in respect of the tax paid – and vice versa.