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%.