UK Tax Rates and Bands
INCOME TAX ALLOWANCES |
2013/2014 |
2014/2015 |
Personal allowance for people born after 5 April 1948 |
9,440 |
10,000 |
Income limit for Personal Allowance (1) |
100,000 |
100,000 |
Personal Allowance for people born between 6 April 1938 and 5 April 1948 |
10,500 |
10,500 |
Personal Allowance for people born before 6 April 1938 |
10,660 |
10,660 |
Income limit for personal allowances (born before 6 April 1948) (2) |
26,100 |
27,000 |
Married couple’s allowance (3) |
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Maximum amount of Married Couple’s Allowance (people born before 6 April 1935) (4) |
7,915 |
8,165 |
Minimum amount of Married Couple’s Allowance (5) |
3,040 |
3,140 |
Blind Person’s Allowance |
2,160 |
2,230 |
INCOME TAX RATES AND TAXABLE BANDS |
2013/2014 |
2014/2015 |
Starting rate for savings: 10%* |
0–2,790 |
0–2,880 |
Basic rate: 20% |
0–32,010 |
0–31,865 |
Higher rate: 40% |
32,011–150,000 |
31,866–150,000 |
Additional rate: 45% |
Over 150,000 |
Over 150,000 |
*From 2008/09 there is a 10% starting rate for savings income only. If non-savings income is above this limit then the 10% starting rate for savings will not apply. |
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The dividend rate is the 10% ordinary rate and the 32.5% dividend upper rate. In addition to these rates, there is a dividend additional rate of 37.5% (2012–13: 42.5%). |
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INHERITANCE TAX THRESHOLDS |
2013/2014 |
2014/2015 |
Nil rate band |
£325,000 |
£325,000 |
(1) The personal allowance reduces where the individual’s income is above this limit by £1 for every £2 above the limit. This applies regardless of the individual’s date of birth. |
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(2) This allowance reduces where the individual’s income is above the income limit by £1 for every £2 above the income limit until it reaches the level of the personal allowance for someone born after 5 April 1948. |
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(3) Available to people born before 6 April 1935. Tax relief for this allowance is restricted to 10%. |
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(4) This allowance reduces where the individual’s income is above the income limit by £1 for every £2 above the income limit until it reaches the minimum amount. Any reduction applies after any reduction to the individual’s personal allowance. |
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(5) This is also the maximum relief for maintenance payments where at least one of the parties is born before 6 April 1935. |