Main reliefs
Allowed at top rate of tax 2012/13 2011/12
Personal Allowance (PA) £8,105 £7,475
Personal Allowance (65-74)* £10,500 £9,940
Personal Allowance (75 and over)* £10,660 £10,090
Blind Person's Allowance £2,100 £1,980
Allowed only at 10%
Married Couple's Allowance (MCA)*
(only available if born before 6th April 1935) £7,705 £7,295
Age-related allowances (AA)* income limit £25,400 £24,000
*AA reduced by £1 for every £2 by which income exceeds limit.
Personal AA reduced before MCA until equal to normal PA.
MCA reduced to minimum £2,960 (2011/12: £2,800).
PA is withdrawn at £1 for every £2 by which total income exceeds £100,000
(PA is nil at income of £116,210 or more).
Rate bands
2012/13 2011/12
Basic rate band (BRB) £34,370 £35,000
Higher rate band (HRB) £34,371-150,000 £35,001-150,000
Additional rate over 150,000 over 150,000
BRB and HRB extended by Gift Aid donations and pension contributions up to permitted limit.
Tax rates
Rates differ for General/Savings/Dividends
2012/13 and 2011/12
G S D
Basic rate 20% 20% 10%
Higher rate 40% 40% 32.5%
Additional rate 50% 50% 42.5%
General income (salary, pension, profit, rent) uses lower rate bands first, then savings (interest), then dividends. UK dividends received are 90% of taxable amount with 10% tax credit.
If taxable general income is less than £2,710 (2011/12: £2,560), savings income is taxed at a ‘starting rate’ of 10% until total taxable income exceeds that limit. This ‘starting rate band’ is part of the BRB.
