Income tax
| Income tax rates | 2010-2011 | 2009-2010 |
|---|---|---|
| 10% starting rate for savings* | £2,440 | £2,440 |
| 20% on first/next | £37,400 | £37,400 |
| 40% on income over | £37,400 | £37,400 |
| 50% on income over | £150,000 | n/a |
| Dividends for basic rate taxpayers | 10% | 10% |
| Dividends for income between £37,400 and £150,000 | 32.5% | 32.5% |
| Dividends for income over £150,000 | 42.5% | 32.5% |
| Trusts within relevant property regime** | 50% | 40% |
| Dividends for trusts within relevant property regime | 42.5% | 32.5% |
* Restricted to savings income and not available if non-savings income exceeds starting rate limit.
** A standard rate band of £1,000 applies, below this level income will be taxed at no more than 20%.
| Main income tax reliefs | 2010-2011 | 2009-2010 |
|---|---|---|
| Personal allowance (for income up to £100,000)* | £6,475 | £6,475 |
| Personal allowance (age 65-74) | £9,490 | £9,490 |
| Personal allowance (age 75 & over) | £9,640 | £9,640 |
| Married couple's allowance (age 75 & over)** |
£6,965 | £6,965 |
| Income limit for age-related allowances | £22,900 | £22,900 |
| Blind person's allowance | £1,890 | £1,890 |
| Enterprise Investment Scheme at 20%*** | £500,000 | £500,000 |
| Venture Capital Trust at 30% | £200,000 | £200,000 |
| Rent-a-room tax-free income | £4,250 | £4,250 |
* From 2010-2011 the allowance reduces by £1 for every £2 of income above the limit, irrespective of age.
** Relief is restricted to 10%, subject to conditions.
*** Capital gains tax deferral relief also available.