Income Tax
| 2011-12 | 2010-11 | |
| Basic rate band - income up to | £35,000 | £37,400 |
| Starting rate for savings | *10% | *10% |
| Basic rate | 20% | 20% |
| Dividend ordinary rate | 10% | 10% |
| Higher Rate - income over | £35,000 | £37,400 |
| Higher Tax Rate | 40% | 40% |
| Dividend upper rate | 32.5% | 32.5% |
| Additional rate - income over | £150,000 | £150,000 |
| Additional rate | 50% | 50% |
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Dividend additional rate |
42.5% | 42.5% |
| * Starting rate is for savings up to the starting rate limited of £2,560 (£2,440) within the basic rate band. The rate applices to any balance of the limit remaining after allocating taxable non-savings income. | ||
| Personal allowances (PA) | ||
| - under 65 | *£7,475 | *£6,475 |
| - 65 to 74 | *£9,940 | *£9,490 |
| - 75 and over | *£10,090 | *£9,640 |
| Married couples allowance (MCA) | ||
| Either partner born before 6 April 1935 | *£7,295 | *£6,965 |
| (relief restricted to 10%) | ||
| Ages are as at the end of the tax year. * Age-related allowances are reduced by £1 for every £2 that adjusted net income exceeds £24,000 (£22,900) to a minimum PA of £7,475 (£6,475) and to a minimum MCA of £2,800 (£2,670). where adjusted net income exceeds £100,000 PA is reduced in the same way until it is nil. | ||
| Tax Shelters | ||
| Enterprise Investment Scheme up to | £500,000 | £500,000 |
| Venture Capital Trust up to | £200,000 | £200,000 |
| Rent a room exempt on gross annual rent | £4,250 | £4,250 |
| Construction Industry Scheme deduction rate | 20/30% | 20/30% |
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