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Daily Telegraph Tax Guide 2012, The by David Genders

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02

Tax rates and allowances

For most of us our annual tax bill is simply dependent on:

  • tax bands and rates; and
  • the allowances and credits we can claim.

Income Tax rates

Under our tax system, the tax (or fiscal) year runs from each 6 April to the following 5 April.

The rates of tax for 2011/12 are:

Band of Taxable Income (£)

Rate of Tax (%)

Tax on Band (£)

Cumulative Tax (£)

0–35,000

20

7,000.00

7,000.00

35,001–150,000

40

46,000.00

53,000.00

over 150,000

50

The rate of 20 per cent is known as the basic rate. Tax at 40 per cent is referred to as the higher rate. The additional rate refers to tax at the 50 per cent level.

Income from dividends is taxed at:

  • 10 per cent on dividend income within the basic rate limit ...

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