Income tax rates | Note | 2012/13 | 2011/12 |
Basic rate band - income up to | £34,370 | £35,000 |
Starting rate for savings | *10% | *10% |
Basic rate | 20% | 20% |
Dividend ordinary rate | 10% | 10% |
Higher rate - income over | £34,370 | £35,000 |
Higher rate | 40% | 40% |
Dividend upper rate | 32.5% | 32.5% |
Additional rate - income over | £150,000 | £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 of £2,710 (£2,560) 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% |