Income tax rates and taxable bands

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Income tax rates and taxable bands - 2010/11 tax year

Posted Mar 25, 2010

As originally announced in the 2009 Pre-Budget Report, the new 50% income tax rate will be introduced in the 2010-11 tax year, together with the gradual removal of the personal allowance for contractors earning over six figures.

We have included the full income tax rates and taxable bands for 2010-11 below. You should visit HMRC for further tax-related tables.

Income Tax allowances

	2008-09	2009-10	2010-11
Personal Allowance *	£6,035	£6,475	£6,475
Income limit for Pers. Allowance	N/A	N/A	£100,000

* 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.

Income Tax rates and taxable bands

	2008-09	2009-10	2010-11
Savings starting rate: 10%*	£0-£2,320	£0-£2,440	£0-£2,440
Basic rate: 20%	£0-£34,800	£0-£37,400	£0-£37,400
Higher rate: 40%	£34,800+	£37,400+	£37,401-£150,000
Additional rate: 50%	N/A	N/A	£150,000+

* From 2008-09 there is a 10% starting rate for savings income only. If your non-savings income is above this limit then the 10% starting rate for savings will not apply.

Dividend Tax

The rates available for dividends for the 2008-09 and 2009-10 tax years are the 10% ordinary rate and the 32.5% dividend upper rate. For the 2010-11 tax year, as well as these rates there is a new dividend additional rate of 42.5%.

Find out more about how to calculate your tax liabilities our dedicated article on dividend tax.

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