Income tax rates
The following table shows the current income tax rates for 2005/2006 and 2004/2005.
| Rates | % | 2005/2006 (£) | % | 2004/2005 (£) |
|---|---|---|---|---|
| Starting | 10 | 0 to 2,090 | 10 | 0 to 2,020 |
| Basic | 22 | 2,091 to 32,400 | 22 | 2,021 to 31,400 |
| Higher | 40 | 32,401 and above | 40 | 31,401 and above |
Income tax allowances
The following table shows how much income you can earn that is exempt from income tax.
| Allowances | 2006/2007 (£) | 2005/2006 (£) |
|---|---|---|
| Personal allowance: under 65 | 5,035 | 4,895 |
| Personal allowance: 65 to 74 | 7,280 | 7,090 |
| Personal allowance: 75 and above | 7,420 | 7,220 |
| Married couple's allowance *1: both under 65 | nil | nil |
| Married couple's allowance: 65 to 74 | 6,065 | 5,905 |
| Married couple's allowance: 75 and above | 6,135 | 5,975 |
| Income limit for age allowances | 20,100 | 19,500 |
| Minimum married couple's allowance *2 | 2,350 | 2,280 |
| Blind person's allowance | 1,660 | 1,610 |
Notes
*1 The married couple's allowance is only available to couples where one or both partners was born before 6 April 1935.
*2 Relief is restricted to 10%.
This page was last reviewed on 03 April 2006.
The information may not reflect changes in legislation made after this date.