Tax Rates & Allowances
Income Tax Rates
2006/07 |
2005/06 |
Band
£ |
Rate
% |
Band
£ |
Rate
% |
0 - 2,150 |
10 |
0 - 2,090 |
10 |
2,151 - 33,300 |
22 * |
2,091 - 32,400 |
22 * |
Over 33,300 |
40 ** |
Over 32,400 |
40 ** |
|
* Except dividends (10%) and savings income (20%).
** Except dividends (32.5%).
Other income taxed first, then savings income and finally dividends.
|
Tax Allowances
|
|
2006/07
£ |
2005/06
£ |
Personal allowance |
- under 65 |
5,035 |
4,895 |
|
- 65 - 74 * |
7,280 |
7,090 |
|
- 75 and over * |
7,420 |
7,220 |
Married
couple's
allowance
(relief at 10%) |
- aged less than 75 and born before 6.4.35 * |
6,065
|
5,905
|
|
- 75 and over* |
6,135 |
5,975 |
|
- min. amount |
2,350 |
2,280 |
* Age allowance income limit |
|
20,100 |
19,500 |
(reduce age allowance by £1 for every £2 of excess income over £20,100) |
Blind person's allowance |
|
1,660 |
1,610 |
|
|
