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 Budget 2006
 
  2006/07 2005/06
 
Lower rate on first £2,150 £2,090
Basic rate on next 31,150 30,310
Higher rate on taxable income over 33,300 32,400
 
Tax rates 2006/07 (unchanged from 2005/06)    
Rates differ for Dividends/Interest/Other D I O
Starting rate 10% 10% 10%
Basic rate 10% 20% 22%
Higher rate 32.5% 40% 40%
Dividends taxed at highest part of income, then interest, then other
Discretionary trust      
- within £1,000 standard rate band (2005/06: £500) 10% 20% 22%
- thereafter 32.5% 40% 40%
 

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