Income tax rates
The following table shows the current income tax rates for 2007/2008 and 2006/2007.
| Rates | % | 2007/2008 (£) | % | 2006/2007 (£) |
|---|---|---|---|---|
| Starting | 10 | 0 to 2,230 | 10 | 0 to 2,150 |
| Basic | 22 | 2,231 to 34,600 | 22 | 2,151 to 33,300 |
| Higher | 40 | 34,601 and above | 40 | 33,301 and above |
Income tax allowances
The following table shows how much income you can earn that is exempt from income tax.
| Allowances | 2007/2008 (£) | 2006/2007 (£) |
|---|---|---|
| Personal allowance: under 65 | 5,225 | 5,035 |
| Personal allowance: 65 to 74 | 7,550 | 7,280 |
| Personal allowance: 75 and above | 7,690 | 7,420 |
| Married couple's allowance *1: both under 65 | nil | nil |
| Married couple's allowance: 65 to 74 | 6,285 | 6,065 |
| Married couple's allowance: 75 and above | 6,365 | 6,135 |
| Income limit for age allowances | 20,900 | 20,100 |
| Minimum married couple's allowance *2 | 2,440 | 2,350 |
| Blind person's allowance | 1,730 | 1,660 |
Notes
*1 The married couple's allowance is only available to couples where one or both partners was born before 6 April 1935.
*2 Relief is restricted to 10%.
This page was last reviewed on 16 April 2007. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
