Income Tax
|
Tax rates
|
2002/03 |
2001/02 |
| Starting rate band to |
£1,920 |
£1,880 |
| Tax rate |
10% |
10% |
| Basic rate band - next |
£27,980 |
£27,520 |
| Normal rate |
22% |
22% |
| Savings income rate |
20% |
20% |
| UK dividend income rate |
10% |
10% |
| Higher rate - taxable income
over |
£29,900 |
£29,400 |
| Normal rate |
40% |
40% |
| UK dividend income rate |
32.5% |
32.5% |
| |
Note |
2002/03 |
2001/02 |
| Allowances that reduce taxable income |
|
|
|
| Personal allowance |
under 65 |
1 |
£4,615 |
£4,535 |
| |
65 to 74 |
1,3 |
£6,100 |
£5,990 |
| |
75 and over |
1,3 |
£6,370 |
£6,260 |
| |
Blind person's allowance |
|
£1,480 |
£1,450 |
| |
|
|
|
|
| Allowances that reduce tax |
|
|
|
| Married couple's allowance |
|
|
|
| Tax reduction |
65 to 74 |
1,2,3 |
£546.50 |
£536.50 |
| |
75 and over |
1,2,3 |
£553.50 |
£543.50 |
| Children's tax credit |
|
|
|
| Tax reduction |
4 |
£529.00 |
£520.00 |
| Baby rate tax reduction |
|
£1,049.00 |
- |
| |
|
|
|
|
| Venture Capital Trusts (VCTs) |
5 |
£100,000 |
£100,000 |
| Enterprise Investment Scheme |
5 |
£150,000 |
£150,000 |
| Golden Handshake |
|
£30,000 |
£30,000 |
| Rent a Room - exempt on gross annual rent |
|
£4,250 |
£4,250 |
Notes
- Ages are as the end of the tax year. Ages for the married couples allowance relate to the elder of husband or wife.
- The married couple's allowance is available only to those
couples where at least one spouse was born before 6 April
1935.
- The higher rates of personal allowances are reduced by
£1 for each £2 of excess income over £17,900
(2001/02 £17,600) until the basic allowance is reached.
Similar limits apply to the married couple's allowance:
the loss of tax reduction is 10p for each £2 of excess
income (only the husband's income is taken into account)
until the minimum of £211 (2001/02 £207) is
reached.
- Children's tax credit (CTC) is available to couples or
single parents who have at least one child under the age
of 16 at the start of the tax year who lives with them for
at least part of the tax year. CTC is reduced by £1
for every £15 by which the claimant's taxable income
exceeds £29,900 (2001/02 £29,400).
- Subscription for new ordinary shares - 20% income tax relief. Also such investments by subscription are eligible for deferral of capital gains tax on gains re-invested (up to £100,000 of gains for VCTs, unlimited for EIS).
Did you know?
That the government raises over £100 billion a year in receipts from income tax.
Beyond 2002/03
From April 2003 the age related personal allowances for those aged 65-74 will be increased to £6,610 and for those aged 75 or over to £240
above indexation.
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