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Sunday, January 01, 2012

Income Tax Rates 2011 - 2012 in the UK



Income tax rates in the UK for 2011/2012 tax period are given below. Initially, you should deduct the income tax allowance so we also provided the allowances for different categories of people.

Income tax rates
2010-11
£ per year
2011-12
£ per year
Starting savings rate: 10%
£0-£2,440
Starting savings rate: 10%
£0-£2,560
Basic rate: 20%
£0-£37,400
Basic rate: 20%
£0-£35,000
Higher rate: 40%
£37,401-£150,000
Higher rate: 40%
£35,001-£150,000
Additional Rate: 50%
Over £150,000
Additional Rate: 50%
Over £150,000

Income Tax allowances:
Allowances
2010-11
Change
2011-12
Personal allowance (age under 65)
£6,475
+1000
£7,475
Personal allowance (age 65-74)
£9,490
+450
£9,940
Personal allowance (age 75 and over)
£9,640
+450
£10,090
Married couple's allowance Maximum (age 75 and over)
£6,965
+330
£7,295
Income limit for age-related allowances 65 and over
£22,900
+1,100
£24,000
Blind person’s allowance
£1,890
+90
£1,980
How is your gross salary calculated?

Gross Salary - Tax free Allowances = Total taxable 
Total taxable x Tax rate (% 10, 20, 40 or 50) = Tax paid
Total taxable - Tax paid - NI = Net Salary

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