Income tax

Tax rates		Note	2009/10	2008/09
Savings starting rate band to			£2,440	£2,320
Savings starting tax band rate			10%	10%
Basic rate band to			£37,400	£34,800
Basic tax rate			20%	20%
Higher rate - taxable income over			£37,400	£34,800
Higher tax rate			40%	40%
UK dividend rate			32.5%	32.5%
Trusts
Trust rate			40%	40%
Schedule F trust rate			32.5%	32.5%
Allowances that reduce taxable income
Personal allowance (PA)	under 65	1	£6,475	£6,035
	65 to 74	1,3	£9,490	£9,030
	75 and over	1,3	£9,640	£9,180
	Blind person's allowance		£1,890	£1,800
Allowances that reduce tax
Married couple's allowance (MCA)
	75 and over	1,2,3	£696.50	£662.50
The age-related allowances are progressively withdrawn if income exceeds			£22,900	£21,800
Minimum PA			£6,475	£6,035
Minimum MCA tax reduction			£267	£254
Non domicile charge Charge for adult non UK domiciliary - applies after UK residence in seven or more of the previous tax years			£30,000	£30,000
Tax Shelters
Enterprise Investment Scheme (EIS) up to			£500,000	£500,000
Maximum amount for EIS carry back			£50,000	£50,000
Venture Capital Trust (VCT) up to			£200,000	£200,000
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%

2010/11

A new 50% rate of income tax is introduced that will apply to taxable non-savings and savings income above £150,000.

The basic personal allowance will gradually be reduced to nil for individuals with adjusted net income above £100,000.

There will be three rates of tax for dividends - 20%, 32.5% and 42.5%.

Ages are as the end of the tax year. Ages for the MCA relate to the elder of spouse or civil partner.
MCA is available only to those couples where at least one spouse or civil partner was born before 6 April 1935.
The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £22,900 until the basic allowance is reached. Similar limits apply to the married couple's allowance: the loss of tax reduction is 10p for each £2 of excess income until the minimum of £267 is reached. (For couples married before 5 December 2005, only the husband's income is taken into account. For those married on or after 5 December 2005 or in a civil partnership, only the higher earner's income is taken into account).

That the Government expects to receive £140.5 billion from Income Tax in the current tax year (2008/09 £152.5 billion)