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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%

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%