You are here: Tax Rates > Income Tax

Income Tax

View the most up to date Income Tax rates

Income tax rates Note 2013/14 2012/13
Basic rate band - income up to £32,010 £34,370
  Starting rate for savings *10% *10%
  Basic rate 20% 20%
  Dividend ordinary rate 10% 10%
Higher rate - income over £32,010 £34,370
  Higher rate 40% 40%
  Dividend upper rate 32.5% 32.5%
Additional rate - income over £150,000 £150,000
  Additional rate 40% 50%
  Dividend additional rate 37.5% 42.5%
* Starting rate is for savings income up to the starting rate limit of £2,790 (£2,710) within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income.    
Trusts    
For interest in possession trusts on all income, and other trusts on the first £1,000 of income ("standard rate band"):    
dividend ordinary rate 5 10% 10%
savings income 5 20% 20%
other income 5 20% 20%
Income of other trusts above £1,000 is taxed at the special trust rates:    
rate applicable to trusts   45% 50%
dividend trust rate   37.5% 42.5%
Personal allowance (PA)    
Born after 5 April 1948 /  under 65 1,4 £9,440 £8,105
Born after 5 April 1938 and before 6 April 1948 /  65 to 74* 1,2,4 £10,500 £10,500
Born before 6 April 1938/  75 and over* 1,2,4 £10,660 £10,660
  Blind person's allowance   £2,160 £2,100
Married couple's allowance (MCA)    
Either partner born before 6 April 1935 (relief restricted to 10%)   1,3,4 £7,915 £7,705
Tax Shelters    
Enterprise Investment Scheme (EIS) up to £200,000 £200,000
Venture Capital Trust (VCT) up to £1,000,000 £1,000,000
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 (registered) 20% 20%
Higher (not registered) 30% 30%

Notes

  1. Ages are as the end of the tax year.
  2. The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £26,100 (£25,400) until the basic allowance is reached.
  3. Similar limits apply to the married couple's allowance. The reduction in allowance is subject to a minimum level of £3,040. (For couples married before 5 December 2005, only the husband's income is taken into account. For those married on or after 5 December 2005 or in a civil partnership, only the higher earner’s income is taken into account).
  4. The personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that net adjusted income exceeds £100,000.
  5. Where there are several trusts created by the same settlor, the "standard rate band" is divided equally between them, subject to a minimum band of £200 for each trust.
 
spacer

Speak to an Accounting expert

If you want to Speak to an Expert then fill in the form below and one of our specialists will call you back

Call me Back >>
spacer
We always try to call you when it is most convenient for you. In some cases this may be the next business day.
spacer
spacer

Tax Rates Links

spacer

Contact Us

spacer

Speak to?
an Expert

We always try to call you when it is most convenient for you. In some cases this may be the next business day.
spacer
Call me Back >>
spacer
spacer