Income Tax

	2009-10	2008-09
Starting rate band to	*£2,440	£2,230
Tax Rate	*10%	*10%
Basic rate band	£37,000	£34,800
Basic rate	20%	20%
Savings rate	20%	20%
Dividend ordinary rate	10%	10%
Higher Rate - income over	£37,400	£34,800
Higher Tax Rate	40%	40%
Dividend upper rate	32.5%	32.5%
*10% starting rate only available for savings income up to £2,440.(£2,320) to the extent that taxable non-savings income does not exceed £2,440 (£2,320).
Allowances that Reduce Taxable Income
Personal allowances (PA)
- under 65	£6,475	£6,035
- 65 to 74	£9,490	£9,030
- 75 and over	£9,640	£9,180
Allowances that Reduce Tax
Married couples allowance (MCA)
Tax reduction
- 74	n/a	£628.50
- 75 and over	£696.50	£662.50

Ages are as at the end of the tax year. The age related allowances are progressively withdrawn if income exceeds	£22,900	£21,800
Minimum PA	£6,475	£6,035
Minimum MCA tax reduction	£267	£254
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%
** start date subject to European Commission approval