Home›Resources›Tax›Tax rates and allowances› Income tax

Income tax

<

Tax bands and rates 2013/14 2012/13
Basic rate band £32,010 £34,370
Basic tax rate 20% 20%
Dividend ordinary tax rate 10% 10%
Savings rate band £2,790 £2,710
Savings rate 10% 10%
Higher rate band £32,011-£150,000 £34,371 - £150,000
Higher tax rate 40% 40%
Dividend higher tax rate 32.5% 32.5%
Additional rate band over £150,000  £150,000
Additional tax rate 45% 50%
Dividend additional tax rate 37.5% 42.5%
Allowances that reduce taxable income
Personal allowances under 65 £9,440 £8,105
  65 to 74 £10,500 £10,500
  75 and over  £10,660 £10,660
Blind person's allowance   £2,160 £2,100

Age related allowances are reduced by £1 for each £2 of income above £26,100 (2012/13 £25,400), until the minimum of £9,440 (2012/13 £8,105) is reached.

The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 (2012/13 - £100,000) to £118,880 (2012/13 - £116,210).
Allowances that reduce tax
Married couple's allowance (MCA) 79 and over (78 and over in 2012/13) £7,915 £7,705
Tax reduction at 10%   £791.50 £770.50

The age for MCA is of the elder spouse or civil partner.

The loss of tax reduction is 10p for each £2 of income above £25,400 (2012/13 £25,400) until the minimum of £304 (2012/13 £296) is reached.
All ages as at 5 April 2014 (5 April 2013 for 2012/13).
Non domicile charge
Charge for adult non UK domiciliary - applies after UK residence in seven or
more of the previous tax years		 £50,000 £50,000
Tax shelters    

Enterprise Investment Scheme (EIS) up to

 £1,000,000 £1,000,000
Maximum amount for EIS carry back £50,000 £50,000
Income tax relief rate 30% 30%
Seed Enterprise Investment Scheme (SEIS) £100,000 £100,000 
Venture Capital Trust £200,000 £200,000
VCT tax relief rate 30% 30%
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 rate - registered 20% 20%
Higher rate - not registered 30% 30%

Did you know?

That the Treasury is expecting to raise £151.9 billion from income tax (2012/13 - £147.4 billion).