Income tax

Income tax rates 2009-2010 2008-2009
10% on first*  £2,440 £2,320
20% on first/next £37,400 £34,800
40% on income over £37,400 £34,800
Dividends for basic rate taxpayers 10% 10%
Dividends for higher rate tax payers 32.5% 32.5%

Trusts within relevant property regime**

 40% 40%

Dividends for trusts within relevant property regime

 32.5% 32.5%

* Restricted to savings income and not available if non-savings income exceeds starting rate limit.
** From April 2006, a standard rate band of £1,000 applies, below this level income will be taxed at no more than 20%.

Main income tax reliefs 2009-2010 2008-2009
Personal allowance (basic) £6,475 £6,035
Personal allowance (age 65-74) £9,490 £9,030
Personal allowance (age 75 & over) £9,640 £9,180

Married couple's allowance (where born before 06.04.35)*

 n/a £6,535
Married couple's allowance
(age 75 & over)*		 £6,965 £6,625
Income limit for age-related allowances £22,900 £21,800
Blind person's allowance £1,890 £1,800
Enterprise Investment Scheme at 20%** £500,000 £500,000
Venture Capital Trust at 30% £200,000 £200,000

Rent-a-room tax-free income

 £4,250 £4,250

* Allowances where relief is restricted to 10%.
** Capital gains tax deferral relief also available.