Higher rate tax - The highest rate of income tax in the UK which in the 2003-2004 tax year is 40%. The rate is applied to each individual"s Taxable Income which is calculated as:Income - Reliefs - AllowancesThe higher rate is only applied to the income above £30,500, as the following table illustrates.£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate)Note: for dividend income the higher rate is not 40% but 32.5%.
Higher rate tax : the highest rate of income tax in the uk which in the 2003-2004 tax year is 40%. the rate is applied to each individual"s taxable income which is calculated as:income - reliefs - allowancesthe higher rate is only applied to the income above £30,500, as the following table illustrates.£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58over £30,500: tax rate is 40% (higher rate)note: for dividend income the higher rate is not 40% but 32.5%.
Higher rate tax