Income Tax

	2010-11 (£)	2009-10 (£)
Personal allowance (1)	6,475	6,475
Personal allowance for people aged 65-74 at the end of year of assessment (1)(2)	9,490	9,490
Personal allowance for people aged 75 and over at the end of year of assessment (1)(2)	9,640	9,640
Income limit for age-related allowances	22,900	22,900
Married couple's allowance - aged 75 or more (relief at 10%) (2)	6,965	6,965
Minimum amount of married couple's allowance	2,670	2,670
Blind person's allowance	1,890	1,890

 

(1) For 2010/11 the personal allowance is reduced for individuals with a gross income before the allowance of £100,000. The allowance will be reduced by £1 for every £2 of gross income above the income limit up to a maximum reduction down to zero. This applies irrespective of age.

(2) These allowances are reduced where the income is above the income limit by £1 for every £2 of income above the limit but will never be less than the personal allowance or minimum amount of married couple's allowance.

Income Tax Bands & Rates

2010-11		2009-10
Taxable Bands(£)	Rate	Taxable Bands(£)	Rate
0 - 2,440	10%*	0 - 2,440	10%*
2,441 - 37,400	20%**	2,441 - 37,400	20%**
37,400 - 150,000	40%***	Over 37,400	40%***
Over 150,000	50%****	N/A	N/A

 

* Only applies to savings income (otherwise is 20%)

** Dividends taxed at 10%

*** Dividends taxed at 32.5% of the gross dividend

**** Dividends taxed at 42.5% of the gross dividend

Other income is taxed first, then savings and then dividends.