Income Tax rates and allowances

Income Tax allowances table

1. From the 2010-11 tax year the Personal Allowance reduces where the

   income is above £100, 000 – by £1 for every £2 of

   income above the £100,000 limit. This reduction applies irrespective

   of age.

2. 2. These allowances reduce where the income is above the income

   limit for age-related allowances by £1 for every £2 of

   income above the limit. For the 2010-11 tax year the Personal Allowance

   for people aged 65 to 74 and 75 and over can be reduced below the

   basic Personal Allowance where the income is above £100,000.

3. Tax relief for the Married Couple’s Allowance is given at the rate

   of 10 per cent.

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Income Tax rates and taxable bands

Income Tax rates and taxable bands

* The 10 per cent starting rate applies to savings income only. If,

after deducting your Personal Allowance from your total income liable

to Income Tax, your non-savings income is above this limit then the

10 per cent starting rate for savings will not apply. Non-savings income

includes income from employment, profits from self-employment, pensions,

income from property and taxable benefits.

The rates available for dividends are the 10 per cent ordinary rate,

the 32.5 per cent dividend upper rate and the dividend additional rate

of 42.5 per cent.

Information taken from HMRC click here to view