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

* 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 The age related allowances are progressively withdrawn if income exceeds the limit for age related allowances above, reducing first PA and then MCA.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.

Tax Information

Tax Reliefs and Bands