Income tax
|
Income Tax Allowances |
2012-13 | 2011-12 |
2010-11 |
|
Personal Allowance (1) |
£8,105 | £7,475 |
£6,475 |
|
Income limit for Personal Allowance |
£100,000 | £100,000 |
£100,000 |
|
Personal Allowance for people aged 65-74 (1)(2) |
£10,500 | £9,940 |
£9,490 |
|
Personal Allowance for people aged 75 and over (1)(2) |
£10,660 | £10,090 |
£9,640 |
|
Married Couple’s Allowance (born before 6th April 1935 but aged under 75) (2)(3)(4) |
Not applicable |
Not applicable |
|
| Married Couple's Allowance (born before 6th April 1935 and aged 75 and over (2)(3) | £7,705 | £7,295 | £6,965 |
|
Income limit for age-related allowances |
£25,400 | £24,000 |
£22,900 |
|
Minimum amount of Married Couple’s Allowance |
£2,960 | £2,800 |
£2,670 |
|
Blind Person’s Allowance |
£2,100 | £1,980 |
£1,890 |
(1) 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.
(2) These allowances reduce where the income is above the income limit - by £1 for every £2 of income above the limit. For the 2008-09 and 2009-10 tax years 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.
(3) Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.
|
Income Tax Rates and Taxable Bands |
2012-13 | 2011-12 |
2010-11 |
|
Starting rate for savings: 10%* |
£2,710 | £0-£2,560 |
£0-£2,440 |
|
Basic rate: 20% |
£0-£34,370 | £0-£35,000 |
£0-£37,400 |
|
Higher Rate: 40% |
£34,371-£150,000 | £35,001-£150,000 |
£37,401-£150,000 |
|
Additional rate: 50% |
Over £150,000 | 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 2008-09 and 2009-10 tax years are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate. For the 2010-11 tax year, as well as these rates there is a new dividend additional rate of 42.5 per cent. These rates will stay the same for the 2012-13 tax year.