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Income tax
| Tax bands and rates | 2011/12 | 2010/11 | |
| Basic rate band | £35,000 | £37,400 | |
| Basic tax rate | 20% | 20% | |
| Dividend ordinary rate | 10% | 10% | |
| Savings rate band | £2,560 | £2,440 | |
| Savings rate | 10% | 10% | |
| Higher rate band | £35,001 - £150,000 | £37,401 - £150,000 | |
| Higher tax rate | 40% | 40% | |
| Dividend higher tax rate | 32.5% | 32.5% | |
| Additional rate band | Over £150,000 | Over £150,000 | |
| Additional tax rate | 50% | 50% | |
| Dividend additional tax rate | 42.5% | 42.5% | |
| Allowances that reduce taxable income | |||
| Personal allowances | under 65 | £7,475 | £6,475 |
| 65 to 74 | £9,940 | £9,490 | |
| 75 and over | £10,090 | £9,640 | |
| Blind person's allowance | £1,980 | £1,890 | |
| Age related allowances are reduced by £1 for each £2 of income above £24,000 (2010/11 £22,900), until the minimum of £7,475 (2010/11 £6,475) is reached. The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 to £114,950. |
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| Allowances that reduce tax | |||
| Married couple's allowance (MCA) | 75 and over | £7,295 | £6,965 |
| Tax reduction at 10% | £729.50 | £696.50 | |
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The age for MCA is of the elder spouse or civil partner. |
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| Non domicile charge Charge for adult non UK domiciliary - applies after UK residence in seven or more of the previous tax years |
£30,000 | £30,000 | |
| Tax shelters | |||
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Enterprise Investment Scheme (EIS) up to |
£500,000 | £500,000 | |
| Maximum amount for EIS carry back | £50,000 | £50,000 | |
| Income tax relief | 30% | 20% | |
|
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 rate - registered | 20% | 20% | |
| Higher rate - not registered | 30% | 30% | |
2012 & beyond
- The personal allowance for those under 65 will increase in 2012/13 by £630 to £8,105
- The non domicile charge is to increase from £30,000 to £50,000 from 6 April 2012
- Enterprise investment scheme investment limit increases to £1 million in April 2012
Did you know?
That the Goverment expect to receive £157.6bn from income tax in 2011/12 (2010/11 - £151.5bn)
Main taxes
- Key dates and deadlines
- Income tax
- Corporation tax
- Inheritance tax
- Capital gains tax
- Value added tax
- National insurance contributions
- Residential property letting
- Main capital allowances
- Business deductions
- Penalties for late returns
- Trusts and settlements
- Non domiciled individuals
