Income Tax 2008/09
Tax rates |
2008/09 |
2007/08 |
Starting rate band 10% |
*see below |
2,230 |
Basic rate band |
36,000 |
32,370 |
Non-savings rate |
20% |
22% |
Savings rate |
*see below |
20% |
UK dividend rate |
10% |
10% |
| * 10% starting rate for savings income up to £2,320. Not applicable if taxable non-savings income exceeds £2,320. |
|
|
Higher rate over |
£36,000 |
£34,600 |
Higher tax rate |
40% |
40% |
UK dividend rate |
32.5% |
32.5% |
Trusts |
|
|
Tax rate |
40% |
40% |
UK dividend rate |
32.5% |
32.5% |
Allowances that reduce taxable income |
|
|
Personal allowance (PA) |
under 65 |
£5,435 |
£5,225 |
|
65 to 74 |
£9,030 |
£7,550 |
|
75 and over |
£9,180 |
£7,690 |
|
Blind person's allowance |
£1,800 |
£1,730 |
Allowances that reduce tax |
|
|
Married couple's allowance (MCA) |
|
|
Tax reduction |
71 to 74 |
£653.50 |
£628.50 |
|
75 and over |
£662.50 |
£636.50 |
The age-related allowances are progressively withdrawn if income exceeds |
£21,800 |
£20,900 |
Minimum PA |
£5,43525 |
£5,225 |
Minimum MCA tax reduction |
£254 |
£244 |
Tax Shelters |
|
|
Enterprise Investment Scheme (EIS) up to |
£500,000 |
£400,000 |
Venture Capital Trust (VCT) up to |
£200,000 |
£200,000 |
Golden Handshake max. |
£30,000 |
£30,000 |
Rent a Room - exempt on gross annual rent up to |
£4,250 |
£4,250 |
| Construction Industry Scheme deduction rate: |
|
|
| Standard (registered) |
20% |
20% |
| Higher (not registered) |
30% |
30% |
|
|
| |
|
|
|
| |
 |
|
|
| |
 |
Contact Us |
| |
|
Suite 4, Earls House, Earlsway,
Team Valley, Gateshead, NE11 0RY |
|
|
|
|
| |
|
Home