| Taxable income 2011/12 | Rate (%) | | £0-£35,000 | 20 | | £35,001 - £150,000 | 40 | | Over £150,000 | 50 |
| Taxable income 2010/11 | Rate (%) | | £0-£37,400 | 20 | | £37,401 - £150,000 | 40 | | Over £150,000 | 50 |
Savings income is generally treated as the highest part of total income. A 10% starting rate, for savings income only, applies to the extent that such income falls within the first £2,560 of taxable income (£2,440 for 2010/11). If taxable non-savings income exceeds this limit, the 10% rate does not apply. Income from dividends is taxed at 10% within the starting and basic rate bands and at 32.5% in the higher rate band and at 42.5% thereafter. (these rates are applied to the dividend grossed-up by a tax credit of 1/9) |
Barrys Accountants Limited
