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Income tax
| Tax bands and rates |
2011/12 |
2010/11 |
| Basic rate band |
£35,000 |
£37,400 |
| Basic tax rate |
20% |
20% |
| Dividend ordinary rate |
10% |
10% |
| Savings rate band |
£2,560 |
£2,440 |
| Savings rate |
10% |
10% |
| Higher rate band |
£35,001 - £150,000 |
£37,401 - £150,000 |
| Higher tax rate |
40% |
40% |
| Dividend higher tax rate |
32.5% |
32.5% |
| Additional rate band |
Over £150,000 |
Over £150,000 |
| Additional tax rate |
50% |
50% |
| Dividend additional tax rate |
42.5% |
42.5% |
| Allowances that reduce taxable income |
| Personal allowances |
under 65 |
£7,475 |
£6,475 |
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65 to 74 |
£9,940 |
£9,490 |
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75 and over |
£10,090 |
£9,640 |
| Blind person's allowance |
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£1,980 |
£1,890 |
Age related allowances are reduced by £1 for each £2 of income above £24,000 (2010/11 £22,900), until the minimum of £7,475 (2010/11 £6,475) is reached.
The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 to £114,950. |
| Allowances that reduce tax |
| Married couple's allowance (MCA) |
75 and over |
£7,295 |
£6,965 |
| Tax reduction at 10% |
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£729.50 |
£696.50 |
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The age for MCA is of the elder spouse or civil partner.
The loss of tax reduction is 10p for each £2 of income above £24,000 (2010/11 £22,900) until the minimum of £280 (2010/11 £267) is reached.
All ages as at 5 April 2012
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Non domicile charge
Charge for adult non UK domiciliary - applies after UK residence in seven or
more of the previous tax years |
£30,000 |
£30,000 |
| Tax shelters |
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Enterprise Investment Scheme (EIS) up to
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£500,000 |
£500,000 |
| Maximum amount for EIS carry back |
£50,000 |
£50,000 |
| Income tax relief |
30% |
20% |
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Venture Capital Trust (VCT) up to
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£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 |
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| Standard rate - registered |
20% |
20% |
| Higher rate - not registered |
30% |
30% |
2012 & beyond
- The personal allowance for those under 65 will increase in 2012/13 by £630 to £8,105
- The non domicile charge is to increase from £30,000 to £50,000 from 6 April 2012
- Enterprise investment scheme investment limit increases to £1 million in April 2012
Did you know?
That the Goverment expect to receive £157.6bn from income tax in 2011/12 (2010/11 - £151.5bn)
Main taxes
Vehicles
Savings
Other taxes
Giving, credits and benefits
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