Budget 2004 - Back to Menu


Income Tax Rates and bands



  2004/05 2003/04
 
Lower rate on first £2,020 £1,960
Basic rate on next 29,380 28,540
Higher rate at taxable income over 31,400 30,500
 
Tax rates 2004/05 (unchanged from 2003/04)    
Rates differ for Dividends/Interest/Other D I O
Starting rate 10% 10% 10%
Basic rate 10% 20% 22%
Higher rate 32.5% 40% 40%
Dividends taxed at highest part of income, then interest
Discretionary trust 32.5% 40% 40%
(increased from 25%, 34%, 34% in 2003/04