|Income tax rates||Note||2012/13||2011/12|
|Basic rate band – income up to||£34,370||£35,000|
|Starting rate for savings||*10%||*10%|
|Dividend ordinary rate||10%||10%|
|Higher rate – income over||£34,370||£35,000|
|Dividend upper rate||32.5%||32.5%|
|Additional rate – income over||£150,000||£150,000|
|Dividend additional rate||42.5%||42.5%|
|* Starting rate is for savings income up to the starting rate limit of £2,710 (£2,560) within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income.|
|For interest in possession trusts on all income, and other trusts on the first £1,000 of income (“standard rate band”):|
|dividend ordinary rate||5||10%||10%|
|Income of other trusts above £1,000 is taxed at the special trust rates:|
|rate applicable to trusts||50%||50%|
|dividend trust rate||42.5%||42.5%|
|Personal allowance (PA)|
|65 to 74*||1,2,4||£10,500||£9,940|
|75 and over*||1,2,4||£10,660||£10,090|
|Blind person’s allowance||£2,100||£1,980|
|Married couple’s allowance (MCA)|
|Either partner born before 6 April 1935 (relief restricted to 10%)||1,3,4||£7,705||£7,295|
|Enterprise Investment Scheme (EIS) up to||£1,000,000||£500,000|
|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:|
|Higher (not registered)||30%||30%|
- Ages are as the end of the tax year. Ages for the MCA relate to the elder spouse or civil partner
- The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £25,400 (£24,000) until the basic allowance is reached.
- Similar limits apply to the married couple’s allowance. The reduction in allowance is subject to a minimum level of £2,960. (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).
- The personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that net adjusted income exceeds £100,000.
- Where there are several trusts created by the same settlor, the “standard rate band” is divided equally between them, subject to a minimum band of £200 for each trust.