2009/10 Tax Tables
What do the numbers mean to you?
Income Tax personal and age-related allowances
| Allowances |
2008/09 |
Change |
2009/10 |
| Personal allowance (age under 65) |
£6,035 |
+£440 |
£6,475 |
| Personal allowance (age 65-74) |
£9,030 |
+£460 |
£9,490 |
| Personal allowance (age 75 and over) |
£9,180 |
+£460 |
£9,640 |
| Married couple’s allowance* (aged lessthan 75 and born before 6 April 1935) |
£6,535 |
* |
* |
| Married couple’s allowance* (age 75 and over) |
£6,625 |
+£340 |
£6,965 |
| Married couple’s allowance* - minimum amount |
£2,540 |
+£130 |
£2,670 |
| Income limit for age-related allowances |
£21,800 |
+£1,100 |
£22,900 |
| Blind person’s allowance |
£1,800 |
+£90 |
£1,890 |
* Married couple’s allowance is given at the rate of 10pc.
** In the 2009/10 tax year all in this category will become 75 at some point and will therefore be entitled to the age 75 and over allowance.
Income Tax - taxable bands
| 2008/09 |
£ per year |
2009/10 |
£ per year |
| Starting savings rate: 10pc* |
£0-£2,320 |
Starting savings rate: 10pc* |
£0-£2,440 |
| Basic rate: 20pc |
£0-£34,800 |
Basic rate: 20pc |
£0-£37,400 |
| Higher rate: 40pc |
Over £34,800 |
Higher rate: 40pc |
Over £37,400 |
*There is a 10p starting rate for savings income 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.
Additional higher rate of Income Tax from 2010
The Chancellor Alistair Darling announced during Budget 2009 that from April 2010 a new rate of Income Tax of 50 per cent will apply to income over £150,000. Also, the Income Tax Personal Allowance will be reduced for those with incomes over £100,000, tapering down to zero.
These changes are to replace the proposed 45 per cent Income Tax rate and the two-stage taper of the personal allowance announced in last November’s Pre-Budget Report.