Tax Rates & Allowances - Income Tax Rates and Bands

Income Tax Rates and bands

2010/11

2009/10

Starting rate on band * (see note)

2,440

Basic rate band

37,400

Higher rate band

37,401-150,000

over 37,400

Additional rate

over 150,000

* Starting rate band is within basic rate band and applies to savings income only; if taxable general income exceeds the band, the 10% rate is not available.

Tax rates

Rates differ for General/Savings/Dividends
	2010/11			2009/10
	G	S	D	G	S	D
Starting rate	N/A	10%	10%	N/A	10%	10%
Basic rate	20%	20%	10%	20%	20%	10%
Higher rate	40%	40%	32.5%	40%	40%	32.5%
Additional rate	50%	50%	42.5%	-	-	-

General income (salary, pension, profit, rent) uses lower rate bands first, then savings (interest), then dividends. Discretionary trusts: basic rate as above applies to the first £1,000 of income, then highest rate.

Designated Members : M.J. Jay, F.C.A. • P.E. Farrow, F.C.C.A., A.C.A. • J.W. Hall, F.C.C.A., A.C.A. • J.R. Turner, Dip. P.F.S., A.I.F.P. • R.D. Gray, A.C.I.B. • S.J. Edwards, A.C.A.
Member: S.T. Boote, B.Sc (Econ), F.C.A.

Offices at King's Lynn and Downham Market. Registered to carry on audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Mapus-Smith & Lemmon LLP is a registered limited liability partnership.