Budget 2008

Income Tax Rates

• Savings income (excluding dividends) is taxed at 10% within the savings rate band (starting rate band 2007/2008)
• Rate applicable to discretionary and accumulation and maintenance trusts is 40%for income above £1,000; below this figure tax rate is 10%or 20%(or 22%2007/2008) depending on the nature of income.

See also Taxation of Dividends

¹ Savings rate band.
² Only available to extent taxable non-savings income is less than savings rate band.
³ Starting rate band.
⁴ Basic rate band.
⁵ Basic rate band reduced by amount of savings rate band used.