Income Tax and Personal Savings

Tax rates		2008/09	2007/08
Starting rate band to		n/a	£2,230
Starting tax band rate		n/a	10%
Basic rate band - next		£34,800	£32,370
Non-savings rate		20%	22%
Savings starting rate band to Savings starting tax band rate		£2,320 10%	n/a n/a
Dividend ordinary rate		10%	10%
Higher rate - taxable income over		£34,800	£34,600
Higher tax rate		40%	40%
Dividend upper rate		32.5%	32.5%
Personal allowances (ages are as at the end of the tax year)
Allowances that reduce taxable income		2008/09	2007/08
Personal allowance (PA)	under 65	£6,035	£5,225
	65 to 74	£9,030	£7,550
	75 and over	£9,180	£7,690
Allowances that reduce tax
Married couple's allowance (MCA)
Age of elder partner	73 to 74*	£653.50	£628.50
	75 and over*	£662.50	£636.50
	minimum	£254.00	£244.00