| Taxable income 2008/09 | Band (£) | Rate (%) | | | | £0-£36,000 | 36,000 | 20 | | | | Over £36,000 |
| 40 |
|
|
| 2007/08 | Band (£) | Rate (%) | | | | 0-2,230 | 2,230 | 10 | | | | 2,231-34,600 | 32,370 | 22 | | | | Over 34,600 |
| 40 |
|
|
Savings income is generally treated as the highest part of total income. For 2008/09 interest is taxed at 10% to the extent it falls in the first £2,320 of taxable income,20% within the remander of the basic rate band and 40% thereafter. For 2007/08 interest is taxed at 10% within the starting rate band, 20% within the basic rate band and 40% thereafter Income from dividends is taxed at 10% within the starting and basic rate bands and at 32.5% thereafter (these rates are applied to the dividend grossed-up by a tax credit of 1/9) |
Barrys Accountants Limited
