Tax Rates
Tax Allowances
| Tax Rates |
2010 / 11 |
2011 / 12 |
| Starting Rate for Savings |
£2,440 |
£2,560 |
| Taxed At |
10% |
10% |
| Basic Rate - From Starting Rate To |
£37,400 |
£35,000
|
| Taxed At |
20% |
20% |
| Savings Income Rate |
20% |
20% |
| UK Dividends Income Rate |
10% |
10% |
| Higher Rate For Income Over * |
£43,875 |
£42,475
|
| Taxed At |
40% |
40% |
| UK Dividends Income Rate |
42.5% |
42.5% |
Additional Rate for Income over £150,000
|
50% |
50% |
Allowances That Reduce Taxable Income
| Tax Rates |
2010 / 11 |
2011 / 12 |
| Personal Allowances Under 65 |
£6,475 |
£7,475 |
| 65 To 74 |
£9,490 |
£9,940 |
| 75 And Over |
£9,640 |
£10,090 |
| Blind Persons Allowance |
£1,890 |
£1,980 |
Income Limit for Personal Allowances
|
£100,000 |
£100,000 |
Allowances That Reduce Tax
| Tax |
2010 / 11 |
2011 / 12 |
| Married Couples Aged 75 and Over |
£696.50 |
£729.50 |
| Rent A Room-Exempt on Gross Annual Rent Up To |
£4,250 |
£4,250 |
| Individual Saving Account Investments (ISA's) |
£10,200
|
£10,200 |
* £10,200 from 06/10/2009 for age 50 +
| Tax |
2010 / 11 |
2011 / 12 |
| Income Limit For Age Related Allowance |
£22,900 |
£24,000 |
From 2010/11 the Personal Allowance reduces where the income is above £100,000 by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
* From 2010/11 Income over £150,000 will attract a 50% tax rate. The new dividend additional rate is 42.5%