Personal Tax Consideration
Income Tax allowances table
|Income Tax allowances||2010-11||2011-12||2012-13|
|Personal Allowance (1)||£6,475||£7,475||£8,105|
|Income limit for Personal Allowance||£100,000||£100,000||£100,000|
|Personal Allowance for people aged 65-74 (1)(2)||£9,490||£9,940||£10,500|
|Personal Allowance for people aged 75 and over (1)(2)||£9,640||£10,090||£10,660|
|Married Couple’s Allowance (born before 6th April 1935 and aged 75 and over) (2) (3)||£6,965||£7,295||£7,705|
|Income limit for age-related allowances||£22,900||£24,000||£25,400|
|Minimum amount of Married Couple’s Allowance||£2,670||£2,800||£2,960|
|Blind Person’s Allowance||£1,890||£1,980||£2,100|
- 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. This reduction applies irrespective of age.
- These allowances reduce where the income is above the income limit for age-related allowances by £1 for every £2 of income above the limit. For the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.
- Tax relief for the Married Couple’s Allowance is given at the rate of 10 per cent.
Income Tax rates and taxable bands
|Starting rate for savings: 10%*||£0-£2,440||£0-£2,560||£0-£2,710|
|Basic rate: 20%||£0-£37,400||£0-£35,000||£0-£34,370|
|Higher rate: 40%||£37,401-£150,000||£35,001-£150,000||£34,371-£150,000|
|Additional rate: 50%||Over £150,000||Over £150,000||Over £150,000|
* The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
The rates available for dividends are the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate and the dividend additional rate of 42.5 per cent.
Proficient Management Consulting and Training (PMCT) specialise in accounting, consulting and training services. We are committed to providing you with an end-to-end integrated services, IT solutions and products that meets personal and businesses unique requirements.
PMCT specialise in Accounting Services, Taxation, Consultancy, Risk Management, Software Solutions, Data Management, Financial Product Development, Risk Management, Compliance & Regulatory Reporting, OTC Financials, Emerging Markets and Training.
PMCT models are not just one of the very best but unique as our approach focuses on solution delivery tailored to satisfy specific client needs and requirements. PMCT provide progressive intelligent solutions to meet specific requirements of a business sector and or client regardless of size and geographical placement.