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Income tax

Tax bands and rates 2012/13 2011/12
Basic rate band £34,370 £35,000
Basic tax rate 20% 20%
Dividend ordinary tax rate 10% 10%
Savings rate band £2,710 £2,560
Savings rate 10% 10%
Higher rate band £34,371 - £150,000 £35,001 - £150,000
Higher tax rate 40%  40%
Dividend higher tax rate 32.5% 32.5%
Additional rate band Over £150,000 Over £150,000
Additional tax rate 50% 50%
Dividend additional tax rate 42.5% 42.5%
Allowances that reduce taxable income
Personal allowances under 65 £8,105 £7,475
  65 to 74 £10,500 £9,940
  75 and over £10,660 £10,090
Blind person's allowance   £2,100 £1,980

Age related allowances are reduced by £1 for each £2 of income above £25,400 (2011/12 £24,000), until the minimum of £8,105 (2011/12 £7,475) is reached.

The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 (2011/12 - £100,000) to £116,210 (2011/12 - £114,950).
Allowances that reduce tax
Married couple's allowance (MCA) 78 and over (77 and over in 2011/12) £7,705 £7,295
Tax reduction at 10%   £770.50 £729.50

The age for MCA is of the elder spouse or civil partner.

The loss of tax reduction is 10p for each £2 of income above £25,400 (2011/12 £24,000) until the minimum of £296 (2011/12 £280) is reached.
All ages as at 5 April 2013 (5 April for 2011/12).
Non domicile charge
Charge for adult non UK domiciliary - applies after UK residence in seven or
more of the previous tax years		 £50,000 £30,000
Tax shelters    

Enterprise Investment Scheme (EIS) up to

 £1,000,000 £500,000
Maximum amount for EIS carry back £50,000 £50,000
Income tax relief 30% 30%

Venture Capital Trust (VCT) up to

 £200,000 £200,000
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    
Standard rate - registered 20% 20%
Higher rate - not registered 30% 30%

Did you know?

That the Treasury is expecting to raise £154.8 billion from income tax (2011/12 - £152.6 billion).

2013 and beyond

From 2013/14 the age related allowance will be restricted. The allowance of £10,500 for 2012/13 will be restricted to those born after 5 April 1938 but before 6 April 1948. Similarly the £10,660 allowance for 2012/13 will be restricted to those born before 6 April 1938.