Income Tax & Personal Allowances 2011/12

Income Tax Bands

	2010/11	2011/12
Basic rate: 20% Higher rate: 40% Additional rate: 50%	£0 - £37,400 £37,401 - £150,000 Over £150,000	£0 - £35,000 £35,001 - £150,000 Over £150,000

Income TAX Personal and

Age-Related Allowances

	2010/11	2011/12
Personal allowance (age under 65) Personal allowance (age 65 – 74) Personal allowance (age 75 and over) Married Couple’s allowance (age 75 and over) Married Couple’s allowance – minimum amount Income limit for age related allowances Blind person’s allowance Married couples allowance is given at the rate of 10 per cent.	£6,475 £9,490 £9,640 £6,965 £2,670 £22,900 £1,890	£7,475 £9,940 £10,090 £7,295 £2,800 £24,000 £1,980

Pension Schemes Allowances

	2010/11	2011/12
Basic rate: 20% Higher rate: 40%	£255,000 £1,800,000	£50,000 £1,800,000

The Coalition Government has opted not to introduce the proposed restriction on tax relief for high earners proposed by the previous Government, and instead has significantly reduced the maximum annual cash contribution that can be made tax free to a pension scheme. Relief on the contribution is granted at the taxpayer’s marginal rate of tax.