|
Income Tax
| Income tax rates |
Note |
2010/11 |
2009/10 |
| Basic rate band - income up to |
£37,400 |
£37,400 |
| Starting rate for savings |
*10% |
*10% |
| Basic rate |
20% |
20% |
| Dividend ordinary rate |
10% |
10% |
| Higher rate - income over |
£37,400 |
£37,400 |
| Higher rate |
40% |
40% |
| Dividend upper rate |
32.5% |
32.5% |
| Additional rate - income over |
£150,000 |
- |
| Additional rate |
50% |
- |
| Dividend additional rate |
42.5% |
- |
| * Starting rate is for savings income up to the starting rate limit of £2,440 within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income. |
|
|
| Trusts |
|
|
| For interest in possession trusts on all income, and other trusts on the first £1,000 of income ("standard rate band"): |
|
|
| dividend ordinary rate |
5 |
10% |
10% |
| savings income |
5 |
20% |
20% |
| other income |
5 |
20% |
20% |
| Income of other trusts above £1,000 is taxed at the special trust rates: |
|
|
| rate applicable to trusts |
|
50% |
40% |
| dividend trust rate |
|
42.5% |
32.5% |
| Personal allowance (PA) |
|
|
| |
under 65 |
1,4 |
£6,475 |
£6,475 |
| |
65 to 74* |
1,2,4 |
£9,490 |
£9,490 |
| |
75 and over* |
1,2,4 |
£9,640 |
£9,640 |
| |
Blind person's allowance |
|
£1,890 |
£1,890 |
| Married couple's allowance (MCA) |
|
|
| Either partner born before 6 April 1935 (relief restricted to 10%) |
|
1,3,4 |
£6,965 |
£6,965 |
| Tax Shelters |
|
|
| Enterprise Investment Scheme (EIS) up to |
£500,000 |
£500,000 |
| Venture Capital Trust (VCT) up to |
£200,000 |
£200,000 |
| Golden Handshake max. |
£30,000 |
£30,000 |
| Rent a Room - exempt on gross annual rent up to |
£4,250 |
£4,250 |
| Construction Industry Scheme deduction rate: |
|
|
| Standard (registered) |
20% |
20% |
| Higher (not registered) |
30% |
30% |
|
Notes
- Ages are as the end of the tax year. Ages for the MCA relate to the elder of spouse or civil partner
- The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £22,900 until the basic allowance is reached.
- Similar limits apply to the married couple's allowance. The reduction in allowance is subject to a minimum level of £2,670. (For couples married before 5 December 2005, only the husband's income is taken into account. For those married on or after 5 December 2005 or in a civil partnership, only the higher earner’s income is taken into account).
- For 2010/11 the personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that net adjusted income exceeds £100,000.
- Where there are several trusts created by the same settlor, the "standard rate band" is divided equally between them, subject to a minimum band of £200 for each trust.
|
