Income Tax Rates and Allowances
| 2010-11 | 2011-12 | |
|---|---|---|
| Personal Allowance | £6,475 | £7,475 |
| Personal Allowance aged 65-74 1 | £9,490 | £9,940 |
| Personal Allowance aged 75+ 1 | £9,640 | £10,090 |
| Married Couple’s Allowance aged 75+ 12 | £6,965 | £7,295 |
| Income limit for age-related allowances | £22,900 | £24,000 |
| Minimum amount of Married Couple’s Allowance | £2,670 | £2,800 |
| Blind Person’s Allowance | £1,890 | £1,980 |
1 Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple’s allowance. MCA is reduced to a minimum of £2,800 (2009/10: £2,670).
2 Only available if born before 6th April 1935.
Personal allowances in 2010/11 will be withdrawn at £1 for every £2 by which total income exceeds £100,000.There will therefore be no allowances if income is £114,950 or more (2010/11: £112,950).
Income Tax rates and taxable bands
| 2010-11 | 2011-12 | ||
|---|---|---|---|
| Starting rate for savings 3 | 10% | £0—£2,440 | £0—£2,560 |
| Basic rate | 20% | £0—£37,400 | £0—£35,000 |
| Higher rate | 40% | £37,401—£150,000 | £35,001-150,000 |
| Additional | 50% | over £150,000 | |
3 There is a 10% starting rate for savings income only. If general taxable income exceeds the starting rate limit, the 10% rate is not available for savings income.
The rates available for dividends are the 10 per cent ordinary rate, 32.5 per cent dividend upper rate and 42.5 per cent dividend additional rate.