Income tax

Income tax rates 2008-2009 2007-2008
10% on first*   £2,230
20%/22% on first/next £34,800 £32,370
40% on income over £34,800 £34,600
Dividends for basic rate taxpayers 10% 10%
Dividends for higher rate tax payers 32.5% 32.5%
Savings income for basic rate tax payers* 20% 20%

Savings income for higher rate taxpayers

 40% 40%

Trusts within relevant property regime**

 40% 40%

Dividends for trusts within relevant property regime

 32.5% 32.5%

* For 2008-09, 10% rate applies to savings income up to £2,320. Not applicable if taxable non-savings income is above £2,320.
** From April 2006, a standard rate band of £1,000 applies, below this level income will be taxed at no more than 22%.

Main income tax reliefs 2008-2009 2007-2008
Personal allowance (basic) £6,035 £5,225
Personal allowance (age 65-74) £9,030 £7,550
Personal allowance (age 75 & over) £9,180 £7,690

Married couple's allowance (where born before 06.04.35)*

 £6,535 £6,285
Married couple's allowance
(age 75 & over)*		 £6,625 £6,365
Income limit for age-related allowances £21,800 £20,900
Blind person's allowance £1,800 £1,730
Enterprise Investment Scheme at 20%** £500,000 £400,000
Venture Capital Trust at 30% £200,000 £200,000

Rent-a-room relief allowance

 £4,250 £4,250

* Allowances where relief is restricted to 10%.
** Capital gains tax deferral relief also available (limit for income tax relief to be confirmed).