 Income tax payers, employees and the self-employed.
General description of the measure
Legislation will be introduced in Finance Bill 2011 to set:
* the basic rate of income tax at 20 per cent;
* the higher rate at 40 per cent; and
* the additional rate at 50 per cent.
Legislation in the Finance Bill will also increase the personal allowance for those aged under 65 to
£7,475 and reduce the basic rate limit to £35,000.
Policy Objective
 The increase to the personal allowance for those aged under 65 will contribute to the Government's objective of a fairer tax system by providing support to individuals on low and middle incomes, and by increasing the rewards to work.
For 2011 - 12, the income tax rate and allowances will be:
Personal allowance for someone aged under 65 £7,475
Income limit for the personal allowance £100,000
Personal allowance for someone aged 65 to 74 £9,940
Personal allowance for someone aged 75 or over £10,090
Married couple's allowance for someone born before 6 April 1935 and aged over 75 £7,295
Minimum amount of married couple's allowance £2,800
Income limit for age-related allowances £24,000
Blind person's allowance £1,980
Starting rate limit for savings £2,560
Basic rate limit £35,000
Higher rate limit £150,000 |
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Tax Rates 2011 - 12 |