Main income tax allowances and reliefs
|
2011/12 |
2012/13 |
Personal allowance - standard
|
£7,475 |
£8,105 |
| > Age 65-74 |
£9,940 |
£10,500 |
| > Age 75 & over |
£10,090 |
£10,660 |
Personal allowance reduced if total income exceeds*
|
£100,000 |
£100,000 |
| Married couple's allowance** |
|
|
> Maximum amount
|
£7,295 |
£7,705 |
> Minimum amount
|
£2,800 |
£2,960 |
Age-related allowances reduced if total income exceeds
|
£24,000
|
£25,400
|
|
|
|
| |
* For 2012/13, the reduction is £1 for every £2 additional income over £100,000. As a result, there is no personal allowance if total income exceeds £116,210 (£114,950 for 2010/11). |
** Relief at 10%. Minimum amount applies for age allowance purposes only. Relief available at 10% only if at least one of the couple was born before 6 April 1935.
|
Note: For 2012/13 and 2011/12, the reduction is £1 for every £2 additional income over the total income threshold. |
Income tax rates
|
2011/12 |
2012/13 |
Starting rate on savings income - 10%
|
£1-2,560 |
£1-2,710 |
Basic rate
|
20% |
20% |
Maximum tax at basic rate***
|
£7,000 |
£6,874 |
Higher rate - 40%
|
£35,001-
150,000 |
£34,371-
150,000 |
Tax on first £150,000***
|
£53,000
|
£53,126
|
Additional rate - 50%
|
Over £150,000
|
Over £150,000
|
Discretionary and accumulation trusts (except dividends)****
|
50% |
50% |
| Discretionary and accumulation trusts (dividends)**** |
42.5% |
42.5% |
| Ordinary rate on dividends |
10% |
10% |
| Higher rate on dividends |
32.5% |
32.5% |
| Additional rate on dividends |
42.5% |
42.5% |
|
|
|
| |
*** Assumes 10% band not available. £6,603 on first £34,370 (£6,744 on first £35,000 in 2011/12) and £52,855 (£52,744 in 2011/12) on first £150,000 if full 10% band is available.
|
**** Up to the first £1,000 of gross income is generally taxed at the standard rate - ie 20%, or 10% as appropriate. |
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