O'Haras Accountancy

Tax Reliefs and Bands

Main Income Tax Reliefs

 

 

 

2009/10

2008/09


Allowances that reduce taxable income

Personal allowance

£6,475

£6,035

Personal allowance (65 – 74)*

£9,490

£9,030

Personal allowance (75 +)*

£9,640

£9,180

 

 

 

Allowances that reduce tax

 

 

Min. Married Couple's Allowance tax reduction

£267

£254

Income limit for age related allowances

£22,900

£21,800

 

 

 

 

taxinfo_img* Ages are at the end of the tax year. Ages for MCA relate to the elder spouse. The age related allowances are progressively withdrawn if income exceeds the limit for age related allowances above, reducing first PA and then MCA. PA cannot fall below £6,475 and MCA tax reduction cannot fall below £267 (2008/09 £254)

Note: 10% starting rate only available for savings income up to £2,440. Not applicable if taxable non-savings income exceeds £2,440

 

Income Tax Bands

 

 

2009/10

2008/09

 

 

 

 

Lower rate on first

£2,440

£2,320

Basic rate on next

 

£37,400

£34,800

Higher rate on taxable income over

£37,400

£34,800

 

 

 

 

Income Tax Rates 2009/10

 

Rates differ for
Dividends/Interest/Other

D

I

O

Starting rate

10%

10%

20%

Basic rate

10%

20%

20%

Higher rate

32.5%

40%

40%

 

 

 

 

Dividends taxed as highest part of income, then interest.