| Income Tax Rates |
Note
|
2011/12
|
2010/11
|
| Basic rate band - income up to |
£35,000
|
£37,400
|
| Starting rate for savings |
*10%
|
*10%
|
| Basic rate |
20%
|
20%
|
| Dividend ordinary rate |
10%
|
10%
|
| Higher rate - income over |
£35,000
|
£37,400
|
| Higher rate |
40%
|
40%
|
| Dividend upper rate |
32.5%
|
32.5%
|
| Additional rate - income over |
£150,000
|
£150,000
|
| Additional rate |
50%
|
50%
|
| Dividend additional rate |
42.5%
|
42.5%
|
| * Starting rate is for savings income up to the starting rate limit of £2,560 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%
|
50%
|
| dividend trust rate |
|
42.5%
|
42.5%
|
| Personal allowance (PA) |
| |
under 65 |
1,4
|
£7,475
|
£6,475
|
| |
65 to 74 |
1,2,4
|
£9,940
|
£9,490
|
| |
75 and over |
1,2,4
|
£10,090
|
£9,640
|
| |
Blind person's allowance |
|
£1,980
|
£1,890
|
| Married couple's allowance (MCA) |
| Either partner born before 6 April 1935 (relief restricted to 10%) |
1,3,4
|
£7,295
|
£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 spouse or civil partner.
- The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £24,000 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 £2,800. (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 2011/12 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.
|
|
