Income Tax Rates |
Note
|
2012/13
|
2011/12
|
Basic rate band – income up to |
£34,370
|
£35,000
|
Basic tax rate |
20%
|
20%
|
Dividend ordinary tax rate |
10%
|
10%
|
Savings rate band |
£2,710
|
£2,560
|
Savings rate |
*10%
|
*10%
|
Higher rate band – income between |
£34,371 – £150,000
|
£35,000 – £150,000
|
Higher tax rate |
40%
|
40%
|
Dividend higher tax rate |
32.5%
|
32.5%
|
Additional rate – income over |
over £150,000
|
over £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 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
|
£8,105
|
£7,475
|
|
65 to 74 |
1,2,4
|
£10,500
|
£9,940
|
|
75 and over |
1,2,4
|
£10,660
|
£10,090
|
|
Blind person’s allowance |
|
£2,100
|
£1,980
|
Married couple’s allowance (MCA) |
Either partner born before 6 April 1935 (relief restricted to 10%) |
1,3,4
|
£7,705
|
£7,295
|
Tax Shelters |
Enterprise Investment Scheme (EIS) up to |
|
£1,000,000
|
£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%
|
|