Income Tax
Income tax allowances, income tax rates and taxable bands
Income tax allowances
|
Allowance
|
Notes
|
2014/15
|
2013/14
|
2012/13
|
2011/12
|
|
Personal allowance (born after 5 April 1948)
|
1
|
£10,000
|
£9,440
|
£8,105
|
£7,475
|
|
Income limit for personal allowance
|
|
£100,000
|
£100,000
|
£100,000
|
£100,000
|
|
Personal allowance (born between 6 April 1938 and and 5 April 1948)
|
1, 2
|
£10,500
|
£10,500
|
£10,500
|
£9,940
|
|
Personal allowance (born before 6 April 1938)
|
1, 2
|
£10,660
|
£10,660
|
£10,660
|
£10,090
|
|
Married couple’s allowance: born before 6 April 1935
|
2, 3
|
£8,165
|
£7,915
|
£7,705
|
£7,295
|
|
Income limit for age-related allowances
|
|
£27,000
|
£26,100
|
£25,400
|
£24,000
|
|
Minimum amount of married couple’s allowance
|
3
|
£3,140
|
£3,040
|
£2,960
|
£2,800
|
|
Blind person’s allowance
|
|
£2,230
|
£2,160
|
£2,100
|
£1,980
|
Notes
-
From 2010/11 the personal allowance is reduced by £1 for every £2 by which the income limit for personal allowances is exceeded until the allowance is completely eroded. This reduction applies irrespective of age.
-
Age related allowances are reduced by £1 for every £2 by which income exceed the income limit for age-related allowances. For 2009/10 and earlier years, the allowances cannot be reduced below the basic personal allowance or the minimum amount of the married couple’s allowance. However, from 2010/11 personal allowances are reduced where income exceeds the income limit for personal allowances (see Note 1).
-
Tax relief for the married couple’s allowance is given at a rate of 10%. Where income exceeds the age-reated limit, the married couple's allowance is reduced below the minimum amount.
Income tax rates and taxable bands
|
|
Notes
|
Rate
|
2014/15
|
2013/14
|
2012/13
|
2011/12
|
|
Starting rate for savings
|
1
|
10%
|
£0 -£2,880
|
£0 - £2,790
|
£0 - £2,710
|
£0 - £2,560
|
|
Basic rate
|
|
20%
|
£0 - £31,865
|
£0 - £32,010
|
£0 - £34,370
|
£0 - £35,000
|
|
Higher rate
|
|
40%
|
£31,866 - £150,000
|
£32,011 - £150,000
|
£34,371 to £150,000
|
£35,001 - £150,000
|
|
Additional rate
|
2
|
|
45%
Over £150,000
|
45%
Over £150,000
|
50%
Over £150,000
|
50%
Over £150,000
|
Notes
-
A rate of 10% applies to savings income only to the extent that income does not exceed the savings rate limit. If non-savings income is above this limit, the 10% starting rate for savings income does not apply.
-
The additional higher rate is 45% for 2014/15 and 2013/14 and 50% for 2012/13 and 2011/12. It applies to taxable income in excess of £150,000.
Dividends
Dividends are charged to income tax at the dividend rates which are applied to the gross dividend (net dividend plus tax credit). Dividends have a 10% tax credit associated with them.
|
|
Dividend Rate
2013/14 nd 2014/15
|
|
Up to basic rate limit |
10% |
|
Above basic rate limit up to higher rate limit |
32.5% |
|
Above higher rate limit |
37% |