|Income tax rates||Note||2014/15||2013/14|
|Basic rate band - income up to||£31,865||£32,010|
|Starting rate for savings||*10%||*10%|
|Dividend ordinary rate||10%||10%|
|Higher rate - income over||£31,865||£32,010|
|Dividend upper rate||32.5%||32.5%|
|Additional rate - income over||£150,000||£150,000|
|Dividend additional rate||37.5%||37.5%|
|* Starting rate is for savings income up to the starting rate limit of £2,880 (£2,790) within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income.|
|For interest in possession trusts on all income, and other trusts on the first £1,000 of income ("standard rate band"):|
|dividend ordinary rate||4||10%||10%|
|Income of other trusts above £1,000 is taxed at the special trust rates:|
|rate applicable to trusts||45%||45%|
|dividend trust rate||37.5%||37.5%|
|Personal allowance (PA)|
|Born after 5 April 1948||3||£10,000||£9,440|
|Born after 5 April 1938 and before 6 April 1948||1,3||£10,500||£10,500|
|Born before 6 April 1938||1,3||£10,660||£10,660|
|Blind person's allowance||£2,230||£2,160|
|Married couple's allowance (MCA)|
|Either partner born before 6 April 1935 (relief restricted to 10%)||2,3||£8,165||£7,915|
|Venture Capital Trust (VCT) up to||£200,000||£200,000|
|Enterprise Investment Scheme (EIS) up to||£1,000,000||£1,000,000|
|Seed Enterprise Investment Scheme up to||£100,000||£100,000|
|Golden Handshake max.||£30,000||£30,000|
|Rent a Room - exempt on gross annual rent up to||£4,250||£4,250|
|Construction Industry Scheme deduction rate:|
|Higher (not registered)||30%||30%|
- The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £27,000 (£26,100) until the basic allowance is reached.
- Similar limits apply to the married couple's allowance. The reduction in allowance is subject to a minimum level of £3,040. (For couples married before 5 December 2005, only the husband's income is taken into account. For those married on or after 5 December 2005 or in a civil partnership, only the higher earner’s income is taken into account).
- The personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that adjusted net income exceeds £100,000 regardless of the individual's date of birth.
- Where there are several trusts created by the same settlor, the "standard rate band" is divided equally between them, subject to a minimum band of £200 for each trust.