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Wednesday, 3 October 2023

Income Tax rates 2012-13

Income Tax allowances and bands for the 2012-13 tax year were published in December 2011. These rates will come into effect from Friday 6 April 2012. These rates were announced in the 2011 Budget and confirmed in the Autumn Statement.

Income Tax allowances

Personal allowance

The 'personal allowance' is the amount of income you can earn before you start paying Income Tax.

Personal allowance	2011-12	2012-13	2013-14
Under 65	£7,475	£8,105	£9,205
Age 65 - 74	£9,940	£10,500	£10,500
Age 75 and over	£10,090	£10,660	£10,660

From the 2013-14 tax year, the higher age-related allowances will stay at the 2012-13 levels, moving towards a simpler, single personal allowance for all taxpayers regardless of their age. The personal allowances will depend on when you were born:

if you were born after 5 April 1948, your allowance will increase to £9,205 in 2013-14
if you were born after 5 April 2023 but before 6 April 1948, you'll get the £10,500 allowance
if you were born before 6 April 1938, you'll get the £10,660 allowance

Personal Allowance (money, tax and benefits section)

Married Couple's Allowance

	2011-12	Change	2012-13
Allowance	£7,295	+£410	£7,705
Minimum amount	£2,800	+£160	£2,960

For further information on Married Couple's Allowance, including eligibility rules, follow the link below.

Married Couple's Allowance (money, tax and benefits section)

Other tax allowances

For details of the following Income Tax allowances, follow the first link below:

income limit for age-related allowances
Blind Person's Allowance

2012-13 Income Tax allowances - HMRC Opens new window

Tax allowances and reliefs (money, tax and benefits section)

Income Tax bands

Tax band	2011-12	2012-13
Starting savings rate: 10%	£0 - £2,560	£0 - £2,710
Basic rate: 20%	£0 - £35,000	£0 - £34,370
Higher rate: 40%	£35,001 - £150,000	£34,371 - £150,000
Additional rate: 50%	Over £150,000	Over £150,000

Higher rate of Income Tax

The point at which you start to pay the higher rate of Income Tax (known as the higher rate threshold) has been frozen at 2011-12 levels. The basic rate limit will decrease by £630 to £34,370, to balance the £630 increase in the personal allowance for people aged under 65.

The upper earnings limit and the upper profits limit for National Insurance will continue to be aligned with the higher rate threshold.