New Tax Rates/Allowances
Income Tax allowances table
| Income Tax allowances |
2009-10 |
2010-11 |
2011-12 |
| Personal Allowance (1) |
£6,475 |
£6,475 |
£7,475 |
| Income limit for Personal Allowance |
Not applicable |
£100,000 |
£100,000 |
| Personal Allowance for people aged 65-74 (1)(2) |
£9,490 |
£9,490 |
£9,940 |
| Personal Allowance for people aged 75 and over (1)(2) |
£9,640 |
£9,640 |
£10,090 |
| Married Couple’s Allowance (born before 6th April 1935 but aged under 75) (2)(3)(4) |
Not applicable |
Not applicable |
Not applicable |
| Married Couple’s Allowance (born before 6th April 1935 and aged 75 and over) (2) (3) |
£6,965 |
£6,965 |
£7,295 |
| Income limit for age-related allowances |
£22,900 |
£22,900 |
£24,000 |
| Minimum amount of Married Couple’s Allowance |
£2,670 |
£2,670 |
£2,800 |
| Blind Person’s Allowance |
£1,890 |
£1,890 |
£1,980 |
- From the 2010-11 tax year 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.
- These allowances reduce where the income is above the income limit for age-related allowances by £1 for every £2 of income above the limit. For the 2009-10 they will never be less than the basic Personal Allowance or minimum amount of Married Couple’s Allowance. However, from the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.
- Tax relief for the Married Couple’s Allowance is given at the rate of 10 per cent.
- In the 2009-10 tax year all Married Couple’s Allowance claimants in this category became 75 at some point during the year and therefore entitled to the higher amount of the allowance – for those aged 75 and over.
Top
Income Tax rates and taxable bands
Income Tax rates and taxable bands
| Rate |
2009-10 |
2010-11 |
2011-12 |
| Starting rate for savings: 10%* |
£0-£2,440 |
£0-£2,440 |
£0- £2,560 |
| Basic rate: 20% |
£0-£37,400 |
£0-£37,400 |
£0- £35,000 |
| Higher rate: 40% |
Over £37,400 |
£37,401-£150,000 |
£35,001-£150,000 |
| Additional rate: 50% |
Not applicable |
Over £150,000 |
Over £150,000 |
* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.
The rates available for dividends for the 2009-10 tax year are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate. From the 2010-11 tax year, as well as these rates there is a new dividend additional rate of 42.5 per cent.
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