Income Tax Rates

Income Tax - taxable bands	2008/09 (£)	2007/08 (£)
Starting rate: 10%:	-	£0 - £2,230
Basic rate: 20%:	£0 - £36,000	-
Basic rate: 22%	-	£2,230 - £34,600
Higher rate: 40%	£36,000 +	£34,600 +

*from 2008/09 only applicable on savings income where it is below £2,320.00.

Dividends
Basic rate taxpayers	10%	10%
Higher rate taxpayers	32.5%	32.5%

Pre-owned assets tax (£5,000 taxable threshold)	As income	As income

Discretionary and Relevant Property Trusts*
Basic rate band	1,000	1,000
Dividends (rate applicable to trusts - RAT)	32.5%	32.5%
Other income (rate applicable to trusts - RAT)	40%	40%

*from 6/4/2008 A&M trusts can only be created by a parent's will, all other trusts will fall under the RPT regime.

Interest In Possession Trusts
Dividends	10%	10%
Savings	20%	20%
Other income	20%	22%