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Income tax rates, taxable bands, personal allowances, dividend tax rates – 2011/12

October 6, 2011

Here are the 2011/12 tables for income tax, taxable bands, personal allowances, and dividend tax rates:

Income tax allowances – 2011/12

Income Tax allowances 2009-10 2010-11 2011-12
Personal Allowance £6,475 £6,475 £7,475
Income limit for Personal Allowance Not applicable £100,000 £100,000

Since 6th April 2010, the Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above this £100,000 limit.

Income Tax Rates & Taxable Bands – 2011/12

Rate 2009-10 2010-11 2011-12
Starting rate for savings: 10% £0-£2,440 £0-£2,440 £0- £2,560
Basic rate: 20% £0-£37,400 £0-£37,400 £0- £35,000
Higher rate: 40% Over £37,400 £37,401-£150,000 £35,001-£150,000
Additional rate: 50% Not applicable Over £150,000 Over £150,000

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

Dividend Tax Rates

The rates available for dividends for the 2011/12 tax year remain unchanged – they are as follows:

  • 10% ordinary rate.
  • 32.5% dividend upper rate, for income in the £35,001-£150,000 bracket.
  • 42.5% ‘additional’ tax rate applies for income in excess of £150,000 p.a.