Posted on: 01 Feb, 16
Allowances and rates affecting income, savings, investments and pensions
Generally the personal allowance is £10,600 with entitlement to a maximum of £10,660 for those born before 6 April 1938. Conditions and restrictions apply to the entitlement over £10,600. Non-savings and savings income above the personal allowance is taxed at rates from 20% to 45%.
Some taxpayers with very modest savings and income may only pay 10%. The basic rate of tax increases to the higher rate for taxable income over £31,785 and to 45% when taxable income exceeds £150,000.
A higher marginal tax rate may be payable between £100,000 and £121,200 when the personal allowance is gradually withdrawn giving an effective marginal rate of 60% in this band for non-savings and savings income. In some cases, you can transfer £1,060 of your personal allowance to your spouse or civil partner.
Download the PDF to see the full document.
Copyright © 2013 - Oury Clark.