Tax Structure and Parameters

           
TA.2 - Rates of Income Tax: 1990-91 to 2003-04             
1990-91
1991-92
1992-93
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Lower rate
Up to 2,000
20
 
Basic rate
Up to 20,700
25
Up to 23,700
25
2,000-23,700
25
 
Higher rate
Over 20,700
40
Over 23,700
40
Over 23,700
40
1993-94 1994-95 1995-96
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Lower rate
Up to 2,500
20
Up to 3,000
20
Up to 3200
20
             
Basic rate
2,500-23,700
25(3)
3,000-23,700
25(3)
3,200-24,300
25(3)

Higher rate
Over 23,700
40
Over 23,700
40
Over 24,300
40
1996-97
1997-98
1998-99
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Lower rate
Up to 3,900
20
Up to 4,100
20
Up to 4,300
20
 
Basic rate
3,900-25,500
24(4)
4,100-26,100
23(4)
4,300-27,100
23(4)
 
Higher rate
Over 25,500
40
Over 26,100
40
Over 27,100
40
1999-2000
2000-01
2001-02
  
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Starting rate
Up to 1,500
10
Up to 1,520
10
Up to 1,880
10
 
   
Basic rate
1,500-28,000
23(5)
1,520-28,400
22(5)
1,881-29,400
22(5)
 
   
Higher rate
Over 28,000
40(6)
Over 28,400
40(6)
Over 29,400
40(6)
2002-2003
2003-04
 
Bands of
taxable income(1)
£
Rate of
tax
%
Bands of
taxable income(1)
£
Rate of
tax
%
Starting rate
Up to 1,920
10
1 - 1,960
10
 
   
Basic rate
1,921-29,900
22(5)
1,961 - 30,500
22 (5)
 
   
Higher rate
Over 29,900
40(6)
Over 30,500
40 (6)

Footnotes

  1. Taxable income is defined as gross income for income tax purposes less any allowances and reliefs available at the taxpayer's marginal rate.   
  2. Applies to the income of discretionary and accumulation trusts. Prior to 1993-94 trusts paid tax at the basic rate, with an additional rate of 10%. 
  3. The basic rate of tax on dividend income is 20% (see also Section 11 paragraph 6). 
  4. The basic rate of tax on dividends and savings income is 20% (see also section 11 paragraph 6 and section 2 paragraph 10).
  5. The basic rate of tax on dividends is 10% and savings income is 20% (see also section 11 paragraph 6 and section 2 paragraph 10).
  6. The higher rate of tax on dividends is 32.5 (see also section 11 paragraph 6 and section 2 paragraph 10).


       
 
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