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The 20% Income Tax rate applied to the first portion of taxable income above the Personal Allowance.
Basic Rate Tax (20%) is the standard rate of Income Tax in the UK. Once your income exceeds the Personal Allowance (£12,570), the portion of income within the basic rate band — up to £50,270 in England, Wales, and NI — is taxed at 20%. Scotland has different bands and rates. Most full-time employees on average salaries pay a mix of basic rate and higher rate tax.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.