Income Tax Allowances
Allowance 2007-08 (£) 2008-09 (£)
Personal allowance (1) 5,225 5,435
Personal allowance for people ages 65-74 (2) 7,550 9,030
Personal allowance for people aged 75 and over (2) 7,690 9,180
Married couple's allowance (born before 6th April 1935 but aged under 75) (2) (3) 6,285 6,535
Married couple's allowance - aged 75 and over (2) (3) 6,365 6,625
Income limit for age-related allowances 20,900 21,800
Minimum amount of married couple's allowance 2,440 2,540
Blind person's allowance 1,730 1,800
  1. As from 1st September 2008 the Personal Allowance for 2008/09 will increase by £600 to £6,035.
  2. These allowances reduce by £1 for every £2 that the taxpayer's income is above the income limit. They will never be less than the Basic Personal Allowance or minimum amount of Married Couple's Allowance.
  3. Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.
Income Tax Bands
Tax rates 2007/08 2008/09
Savings starting rate band to N/A £2,320
Savings income starting rate band tax N/A 10%
Starting rate band to £2,230 N/A
Starting rate band tax 10% N/A
Basic rate band (4) £32,370 £36,000
Basic rate band tax 22% 20%
Savings income within basic rate band tax 20% N/A
Tax on UK dividends within starting (2007/08) and basic rate bands 10% 10%
Higher rate - taxable income over (5) £34,600 £36,000
Higher rate band tax 40% 40%
UK dividend higher rate band tax 32.5% 32.5%
  1. As from 1st September 2008 the Basic Rate Band for 2008/09 will reduce by £1,200 to £34,800.
  2. As from 1st September 2008, Higher Rate Tax for 2008/09 will apply at taxable income over £34,800. Please note if you are a higher rate taxpayer the tax you pay will remain same.
Disclaimer

This data for legislative rates is for information purposes only and PG Business Solutions are not responsible for actions taken or not taken in respect of information provided. Should you wish to know more about how they affect you or your business liability then please contact us for specified tailored advice suited to your individual circumstances. Errors and omissions in this information are excepted.

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