Tax Rates & Allowances - Income Tax Rates & Bands
This information is prepared for guidance only. We recommend that you contact us for advice before acting on any information contained on this page and we cannot accept responsibility for any action taken without such advice.
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2009/10
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2008/09
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Starting rate on first*
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2,440
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2,320
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Basic rate on next
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37,400
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34,800
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Higher rate on taxable income over
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37,400
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34,800
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*Starting rate band is within basic rate band & applies to savings income only; if the taxable general income exceeds the band, the 10% rate is not available.
Tax rates - Rates differ for General, Interest & Dividends
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2009/10
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2008/09
|
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G
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I
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D
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G
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I
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D
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Starting rate
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n/a
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10%
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10%
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n/a
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10%
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10%
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Basic rate
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20%
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20%
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10%
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20%
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20%
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10%
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Higher rate
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40%
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40%
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32.5%
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40%
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40%
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32.5%
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General income (salary, pension, profit, rent) uses lower rate bands first, then interest, then dividends. Discretionary trusts: basic rate as above applies to the first £1,000 of income, then higher rate.
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