UK Income Tax Rates & Allowances 2009-10

UK Income Tax Rates 2009-10

Tax Rate	Taxable band
Starting rate for savings: 10%*	ú 0 - ú 2,440
Basic rate: 20%	ú 0 - ú 37,400
Higher rate: 40%	Over ú 37,400

* If non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.

The rates available for dividends are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate.

UK Income Tax Allowances 2009-10

Allowance Description	Amount
Personal Allowance	ú 6,475
Personal Allowance for people aged 65 - 74 *	ú 9,490
Personal Allowance for people aged 75 and over *	ú 9,640
Married Couple's Allowance - aged 75 and over* **	ú 6,965
Income limit for age-related allowances	ú 22,900
Minimum amount of Married Couple's Allowance	ú 2,670
Blind Person's Allowance	ú 1,890

* These allowances reduce where the income is above the income limit - by ú1 for every ú2 of income above the limit. However they will never be less than the basic Personal Allowance or minimum amount of Married Couple's Allowance.

** Tax relief for the Married Couple's allowance is given at the rate of 10 per cent.

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