Tax Rates

  • Starting rate for savings* 0%
  • Basic rate 20%
  • Higher rate 40%
  • Additional rate 45%
  • Starting‐rate limit £5,000*
  • Threshold of taxable income above which higher rate applies £32,000
  • Threshold of taxable income above which additional rate applies £150,000
  • Child benefit charge from 7 January 2013: 1% of benefit for every £100 of income over £50,000

*restricted to savings income only and not available if taxable non‐savings income exceeds starting rate band.

MAIN PERSONAL ALLOWANCES AND RELIEFS

  • Income limit for Personal Allowance § £100,000
  • Personal Allowance (basic) (if born after 5 April 1948) § £11,000
  • Personal Allowance (if born between 6 April 1938 and 5 April 1948) § £11,000
  • Personal Allowance (if born before 6 April 1938) § £11,000
  • Married/civil partners (minimum) at 10% † £3,220
  • Married/civil partners at 10% † £8,355
  • Transferable Tax allowance for married couples and civil partners £1,100
  • Income limit for age‐related allowances § £27,700
  • Blind Person’s Allowance £2,290
  • Enterprise Investment Scheme relief limit on £1,000,000 max 30%
  • Seed Enterprise Investment relief limit on £100,000 max 50%
  • Venture Capital Trust relief limit on £200,000 max 30%

§ the Personal Allowance reduces by £1 for every £2 of income above the income limit irrespective of age (under the income threshold).

† where at least one spouse/civil partner was born before 6 April 1935.

  • Child Tax Credit (CTC)
    • Child element per child (maximum) £2,780
    • Family element £545
    • Threshold for tapered withdrawal of CTC £16,105