Income tax

Income tax rates 2011-2012 2010-2011
10% starting rate for savings* £2,560 £2,440
20% on first/next £35,000 £37,400
40% on income over £35,000 £37,400
50% on income over £150,000 £150,000
Dividends for basic rate taxpayers 10% 10%
Dividends for higher rate taxpayers up to £150,000  32.5% 32.5%
Dividends for income over £150,000 42.5% 42.5%
Trusts within relevant property regime** 50% 50%
Dividends for trusts within relevant property regime 42.5% 42.5%

* 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 2011-2012 2010-2011
Personal allowance (for income up to £100,000)* £7,475 £6,475
Personal allowance (age 65-74) £9,940 £9,490

Personal allowance (age 75 and over)

£10,090 £9,640
Married couple's allowance
(where born before 06/04/1935)**
£7,295 £6,965
Income limit for age-related allowances £24,000 £22,900
Blind person's allowance £1,980 £1,890
Enterprise Investment Scheme at 30% / 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 2010-11 the allowance reduces by £1 for every £2 of income above the limit, irrespective of age.
** Relief is restricted to 10%, subject to conditions (minimum allowance £2,800 for 2011-12).
*** Capital gains tax deferral relief also available.

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Click here to download our 2011 - 2012 Tax Rate card

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