Budget 2010 – Income Tax Rates and Allowances
Income Tax Rates 2010-11
The Chancellor did not announce any changes to the income tax rates, apart from confirming the introduction of the new 50% rate.
From 6 April 2010 the income tax rates will be as follows:
Starting savings rate 10%* – £0 to £2,440
Basicrate 20% – £0 to £37,400
Higher rate 40% – Over £37,400
Additional higher rate 50% – Over £150,000
* There is a 10p starting rate for savings only. If an individual’s non savings taxable income exceeds the starting rate limit, the 10p starting rate for savings will not be available for savings income.
Personal Allowances 2010-11
The limits for personal and age related allowances remain as follows:
Age under 65 – £6,475
Age 65 to 74 – £9,490
Age 75 and over – £9,640
The income limit for aged related allowances (over 65’s) stays at £22,900.
The blind person’s allowance remains frozen at £1,890.
The basic personal allowance will be reduced for taxpayers who earn more than £100,000 per annum. Where an individual’s income is above £100,000 the basic personal allowance will be reduced by £1 for every £2 their income exceeds £100,000. Anyone with a taxable income above £150,000 will not be entitled to any personal allowance.