Tax brackets - The rates of income tax payable on taxable income. For the tax year 2003-2004, the brackets are:£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)The rate is applied to each individual"s taxable income which is calculated as:Taxable income = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the "personal allowance" which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.
Tax brackets : the rates of income tax payable on taxable income. for the tax year 2003-2004, the brackets are:£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)the rate is applied to each individual"s taxable income which is calculated as:taxable income = income - reliefs - allowancesthe main reliefs are pension contributions and donations to charity. the main allowances are the "personal allowance" which every individual has (£4,615 for people under 65 in 2003-2004) and the married couples allowance for couples where one spouse is 65 or over.
Tax brackets