United Kingdom

Rates and Allowances - Income Tax

Income tax allowances 2005-06 (£) 2006-07 (£)          2007-08 (£) 2008-09 (£)
Personal allowance   4,895   5,035   5,225   6,035
Personal allowance for people aged 65-74   7,090   7,280   7,550   9,030
Personal allowance for people aged 75 and over   7,220   7,420   7,690   9,180
Income limit for age-related allowances 19,500 20,100 20,900 21,800
Married couple's allowance for people born before 6 April 1935   5,905   6,065   6,285   6,535
Married couple's allowance - aged 75 or more   5,975   6,135   6,365   6,625
Minimum amount of married couple's allowance   2,280   2,350   2,440   2,540
Blind person's allowance   1,610   1,660   1,730   1,800

The rate of relief for the continuing married couple's allowance and maintenance relief for people born before 6 April 1935, and for the children's tax credit, is 10%.

Taxable Bands

Taxable Bands Allowances 2005-06 (£) 2006-07 (£) 2007-08 (£) 2008-09 (£)
Starting rate 10% 0 - 2,090 0 - 2,150 0 - 2,230 Not Applicable
Basic rate 22% 2,091 - 32,400 2,151 - 33,300 2,231 - 34,600 0 - 34,800 - Basic Rate 20%
Higher rate 40% Over 32,400 Over 33,300 Over 34, 600 Over 34,800

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