Thakkar & Co.

Phone: 08005423281
Email: ajay@thakkarfs.com

Income Tax Rates

 Rates

2012-13

2013-14

 Starting rate for savings: 10%*

  £0 - £2,710

 £0 - £2,790

 Basic Rate: 20%

  £0 - £34,370

 £0 - £32,010

 Higher Rate: 40%

  £34,371 - £150,000

 £32,011 - £150,000

 Additional Rate: 50%

 Over £150,000

Over £150,000

 

Savings income is generally treated as the highesh part of total income. A 10% stating rate, for savings income only, applies to the extent that such income falls within the first £2,710 of taxable income (£2,790) for 2013/14).

If taxable non-savings income exceeds this limit, the 10% rate does not apply. Income from dividends is taxed at 10% within the starting and basic rate bands, at 32.5% in the higher rate band and at 42.5% thereafter (these rates are applied to the dividend grossed-up by a tax credit of 1/9).

 

Source: http://www.hmrc.gov.uk/rates/it.htm