Tax - In England

This information applies to England, Wales, Scotland and Northern Ireland

Using this information

The tables in this information show the percentage rates of income tax in the current and past six tax years. The rest of the information explains how to calculate your tax.

Your taxable income is not the same as your total income. This is because all taxpayers are allowed a certain amount of deductions in the form of allowances and tax reliefs. You may also have some income which is tax-free.

When using the figures in the taxable income columns, remember that they refer to your taxable income and not to total income.

For more information about tax-free income, see Tax-free and taxable income, for details of tax reliefs, see Tax reliefs, and for details of allowances, see Income tax allowances and amounts.

A tax year runs from 6 April one year to 5 April the following year.

The percentage rates and/or bands of taxable income may change for each tax year.

Back to top

Income tax: taxable bands and rates 2009/2010

Taxable income	rate of tax
0 - £2,440 (savings only)	10 per cent (starting rate for savings)
0 - £37,400	20 per cent (basic rate)
Over £37,400	40 per cent (higher rate)

Basic rate

Tax is payable at the basic rate of 20 per cent on taxable income up to £37,400.

Higher rate

If you have more than £37,400 of taxable income, you will have to pay a higher rate of tax on the amount above this level.

To calculate the tax payable

To calculate the tax payable, you should:

• work out the taxable income, after taking any allowances or tax reliefs into account (see under heading Using this information), then
• calculate tax on your taxable income up to the limit of £37,400 at 20 per cent, then
• if you have taxable income over £37,400, calculate tax on the taxable income over £37,400 at 40 per cent, then
• add the last two figures together. This is the amount of tax that is payable for 2009/2010.

The starting rate for savings

Note if you are on a low income, some or all of the income from your savings will be taxable at 10 per cent. This is called the starting rate for savings. Low income means if your income is less than your personal allowance plus £2,440 for the tax year 2009/2010 (or £2,320 for the tax year 2008/2009).

The starting rate for savings does not apply if your taxable income (after allowances are taken off) is more than £2,440 for the tax year 2009/2010 (or £2,320 for the tax year 2008/2009).

Back to top

Income tax: taxable bands and rates for previous years

Tax year 2008/2009

Taxable income	rate of tax
0 - £2,320 (savings only)	10 per cent (starting rate for savings)
0 - £34,800	20 per cent (basic rate)
Over £34,800	40 per cent (higher rate)

From 6 April 2008, the starting rate of 10 per cent was abolished for non-savings income.

Tax year 2007/2008

Taxable income	rate of tax
0.-£2,230 £2,231 - £34,600 Over £34,600	10 per cent 22 per cent 40 per cent

Tax year 2006/2007

Taxable income	rate of tax
0 - £2,150	10 per cent
£2,151 - £33,300	22 per cent
Over £33,300	40 per cent

Tax year 2005/2006

Taxable income	rate of tax
0 - £2,090	10 per cent
£2,091 - £32,400	22 per cent
Over £32,400	40 per cent

Tax year 2004/2005

Taxable income	rate of tax
0 - £2,020	10 per cent
£2,021 - £31,400	22 per cent
Over £31,400	40 per cent

Tax year 2003/2004

Taxable income	rate of tax
0 - £1,960	10 per cent
£1,961 - £30,500	22 per cent
over £30,500	40 per cent

Back to top

Bookmark and share

What are these?

Page tools

Rate this Page Add comment

Print this page

Email this page

Please fill your comment: (Optional)

Your name: (Optional)

Your email address: (Optional)

To email address: (Required)

Your name: (Required)

Confirm to email address: (Required)

Your email address: (Required)