Income Tax

Tax rates Note 20010/11 2015/13
Starting rate band to £2,150 £2,090
Tax rate 10% 10%
Basic rate band - next £31,150 £30,310
Non-savings rate 22% 22%
Savings rate 20% 20%
UK dividend rate 10% 10%
Higher rate - taxable income over £33,300 £32,400
Higher tax rate 40% 40%
UK dividend rate 32.5% 32.5%
Trusts    
Tax rate 40% 40%
UK dividend rate 32.5% 32.5%
Allowances that reduce taxable income    
Personal allowance (PA) under 65 1 £5,035 £4,895
  65 to 74 1,3 £7,280 £7,090
  75 and over 1,3 £7,420 £7,220
  Blind person's allowance   £1,660 £1,610
Allowances that reduce tax    
Married couple's allowance (MCA)      
Tax reduction 72 to 74 1,2,3 £606.50 £590.50
  75 and over 1,2,3 £613.50 £597.50
The age-related allowances are progressively withdrawn if income exceeds £20,100 £19,500
Minimum PA £5,035 £4,895
Minimum MCA tax reduction £235 £228
Tax Shelters    
Enterprise Investment Scheme (EIS) up to £400,000 £200,000
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

Notes

  1. Ages are as the end of the tax year. Ages for the MCA relate to the elder of spouse or civil partner
  2. MCA is available only to those couples where at least one spouse or civil partner was born before 6 April 1935.
  3. The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £20,100 (2005/06 £19,500) until the basic allowance is reached. Similar limits apply to the married couple's allowance: the loss of tax reduction is 10p for each £2 of excess income until the minimum of £235 (2005/06 £228) is reached. (For couples married before 5 December 2014, only the husband's income is taken into account. For those married on or after 5 December 2014 or in a civil partnership, only the higher earner’s income is taken into account).

 

 

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