| Rate Band: | 2010
/ 11 | 2009
/ 10 |
| Starting savings rate of 10% on savings income up to* | £0-£2,440 |
£0-£2,440 |
| Basic rate of 20% on income up to | £0-£37,400 |
£0-£37,400 |
| Higher rate of 40% on income | £37,400-£150,000 |
Over £37,400 |
| Additional rate of 50% on income over | £150,000 |
n/a |
| Dividends for starting & basic rate taxpayers | 10% |
10% |
| Dividends for higher rate taxpayers | 32.5% |
32.5% |
| Dividends for additional rate taxpayers | 42.5% |
n/a |
| Trusts - standard rate band generally | £1,000 |
£1,000 |
| Trusts - dividends (rate applicable to trusts) | 42.5% |
32.5% |
| Trusts - other income (rate applicable to trusts) | 50% |
40% |
| Pre-owned assets tax minimum taxable as income | £5,000 |
£5,000 |
*Not available if taxable non-savings income exceeds starting rate band
The
10% starting rate of Income Tax includes savings income. Where an individual has
savings income in excess of the starting rate limit they will be taxed at the
lower rate of 20% up to the basic rate limit and at the higher rate of 40% for
income above the basic rate limit.