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Bands of taxable income and corresponding tax rates

	2014-15	2015-16
	Per cent of income / £ a year year
Basic rate	20%	20%
Higher rate	40%	40%
Additional rate	45%	45%
Starting rate for savings income (*)	10%	0%
Dividend ordinary rate	10%	10%
Dividend upper rate	32.5%	32.5%
Dividend additional rate	37.5%	37.5%
Trust rate	45%	45%
Starting rate limit (savings income)	£2,880	£5,000
Basic rate band	£0 – 31,865	£0 – 31,785
Higher rate band	£31,866 – 150,000	£31,786 – 150,000
Additional rate band	Over £150,000	Over £150,000

(*) From 2008-09 there is a starting rate for savings income only. If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate for savings will not be available for savings income.

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