| Band | Rate |
| £1-£36,000 | 20% |
| Over £36,000 | 40% |
Dividends receive a 10% tax credit. Higher rate taxpayers pay further tax of 22.5% (or 25% of the actual dividend). From 2008/09 there is a 10% starting rate of up to £2,320 only for savings income. Savings income in excess of this band is taxable at the rates above (i.e. £2,321 to £36,000 at 20% and over £36,000 at 40%). However non-savings income takes priority over savings income when using the £2,230 band.
There are special rules for trusts.
| Personal Allowances | 2008/09 | 2007/08 |
| Personal Age allowance Age 65-74 (65-74) (age on 5.4.2008) | £9,030 | £7,550 |
| Personal (a) | £5,435 | £5.225 |
| Married couples (a) (b) (c) 65 - 74 | £6,535 | £6,285 |
| Age 75 (75) or over (age on 5.4.2008) Personal (a) | £9,180 | £7,690 |
| Married couples (a) (b) (c) 75 + | £6,625 | £6,365 |
| Income limit for age allowances | £21,800 | £20,900 |
| Blind persons | £1,800 | £1,730 |
(a) Age related allowances reduce if total income exceeds the income limit.
Minimum personal allowance is £ 5,435(£5,225) Minimum married couples allowance is (£2,540) (£2,440)
(b) For marriages before 5 December 2005, allowance only given where husband or wife born before 6 April 1935. Claimed by husband but, on election, may be claimed by wife or shared equally. Transferable on election if insufficient income. Relief limited to 10% (10%) of amounts shown.
(c) For marriages or civil partnerships on or after 5 December 2005 where one party born before 6 April 1935, allowance given to the individual with the highest income. Couples married before 5 December 2005 may elect for this treatment, otherwise (b) will continue to apply. relief limited to 10% (10%) of amounts shown.