Income Tax rates and allowances

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Income Tax allowances table

Income Tax allowances

2010-11

2011-12

2012-13

Personal Allowance (1)

£6,475

£7,475

£8,105

Income limit for Personal Allowance

£100,000

£100,000

£100,000

Personal Allowance for people aged 65-74 (1)(2)

£9,490

£9,940

£10,500

Personal Allowance for people aged 75 and over (1)(2)

£9,640

£10,090

£10,660

Married Couple's Allowance (born before 6th April 1935 and aged 75 and over) (2) (3)

£6,965

£7,295

£7,705

Income limit for age-related allowances

£22,900

£24,000

£25,400

Minimum amount of Married Couple's Allowance

£2,670

£2,800

£2,960

Blind Person's Allowance

£1,890

£1,980

£2,100
  1. From the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
  2. 2. These allowances reduce where the income is above the income limit for age-related allowances by £1 for every £2 of income above the limit. For the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.
  3. Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.

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Income Tax rates and taxable bands

Income Tax rates and taxable bands

Rate

2010-11

2011-12

2012-13

Starting rate for savings: 10%*

£0-£2,440

£0-£2,560

£0-£2,710

Basic rate: 20%

£0-£37,400

£0-£35,000

£0-£34,370

Higher rate: 40%

£37,401-£150,000

£35,001-£150,000

£34,371-£150,000

Additional rate: 50%

Over £150,000

Over £150,000

Over £150,000

* The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.

The rates available for dividends are the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate and the dividend additional rate of 42.5 per cent.

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More useful links

Find out more about Income Tax

Introduction to tax allowances and reliefs

Taxable and non-taxable income at a glance

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