Income Tax Rates and bands

	2008/09	2007/08
Starting rate on first	*	£2,230
Basic rate on next	36,000	32,370
Higher rate on taxable income over	36,000	34,600
* Starting rate band within basic rate band for savings income only: £2,320
Tax rates
Rates differ for General/Interest/Dividends   2008/09   2007/08 Rates differ for General/Interest/Dividends G I D   G I D Starting rate N/A 10% 10%   10% 10% 10% Basic rate 20% 20% 10%   22% 20% 10% Higher rate 40% 40% 32.5%   40% 40% 32.5% General income (salary, pension, profit, rent) uses lower rate bands first, then interest, then dividends. Discretionary trusts: basic rate as above applies to the first £1,000 of income, then higher rate.