| |
2008/09 |
2007/08 |
| |
| Starting rate on first |
* |
£2,230 |
| Basic rate on next |
34,800 |
32,370 |
| Higher rate on taxable income over |
34,800 |
34,600 |
| |
* Starting rate band within basic rate band for savings income only: £2,320
|
| |
| Tax rates |
|
|
| Rates differ for General/Interest/Dividends |
| |
2008/09 |
|
2007/08 |
| Rates differ for General/Interest/Dividends |
G |
I |
D |
|
G |
I |
D |
| Starting rate |
N/A |
10% |
10% |
|
10% |
10% |
10% |
| Basic rate |
20% |
20% |
10% |
|
22% |
20% |
10% |
| Higher rate |
40% |
40% |
32.5% |
|
40% |
40% |
32.5% |
| General income (salary, pension, profit, rent) uses lower rate bands first, then interest, then dividends. Discretionary trusts: basic rate as above applies to the first £1,000 of income, then higher rate. |
|
