Starting rate of UK income tax
- Starting rate of UK income tax
The starting rate of income tax, often known as the 10p rate, was the lowest rate of personal income taxation imposed in the United Kingdom from 1999 to 2008. It was introduced by the Chancellor of the Exchequer, Gordon Brown, in his 1999 budget and abolished by him in his last budget in 2007.
Description
The starting rate was introduced in Gordon Brown's third budget as Chancellor.[] By 2008 the starting rate had been raised to apply to income between £5,225 and £7,445. [cite web |title=2008 Tax Calculation Guide |url=http://www.hmrc.gov.uk/worksheets/sa110-notes.pdf |format=PDF |publisher=HMRC] The starting rate was the lowest rate of income tax, and as such was the only income tax paid by 1.8 million of the lowest earners.]"The 10p rate is very important because it's a signal about the importance we attach about getting people into work and it's of most importance to the low paid. This is not about gimmicks this is about tax reform that encourages work and families, on the families side it is replacing what was an anomalous married couples' allowance and replace it with a child tax credit."
Abolition
The 2007 budget, Gordon Brown's last as Chancellor, abolished the starting rate tax rate from April 2008. [cite web|title=Budget 2007: report|url=http://www.hm-treasury.gov.uk/budget/budget_07/report/bud_budget07_repindex.cfm|publisher=HM Treasury] This meant that all income above the personal allowance (£5,435 in 2008) and below the higher rate band would be taxed at 20%, with the effect that taxpayers earning above the personal allowance would be up to £232 worse off each year. [cite news |publisher=BBC News |url=http://news.bbc.co.uk/1/hi/uk/7334448.stm |title=Low-earners fear tax changes |date=7 April 2008 |accessdate=2008-05-19] The abolition of the band came into effect at the start of the 2008 tax year. It has been the source of considerable criticism from within the Labour Party. High profile figures have protested, including former minister Frank Field[cite news|url=http://www.independent.co.uk/news/people/frank-field-frank-ndash-but-so-sorry-830365.html|title=Frank Field: Frank – but so sorry|date=18 May 2008|publisher=The Independent|accessdate=2008-05-18] and the MP Angela Christine Smith. [cite news|url=http://news.bbc.co.uk/1/hi/uk_politics/7353273.stm|title= MP decides not to quit government|date=17 April 2008|publisher=BBC News|accessdate=2008-05-18] ] References
Wikimedia Foundation.
2010.
Look at other dictionaries:
income tax — a tax levied on incomes, esp. an annual government tax on personal incomes. [1790 1800] * * * Levy imposed by public authority on the incomes of persons or corporations within its jurisdiction. In nations with an advanced system of private… … Universalium
Income tax in the Netherlands — In the Netherlands there is an income tax, which since 2001 ( Wet inkomstenbelasting 2001 ) is roughly as follows. The fiscal year is the calendar year. No later than March citizens have to report their income of the previous year. The system… … Wikipedia
income tax — IT A direct tax on an individual s income. In general, individuals can earn income without paying tax up to a threshold, with subsequent income giving rise to tax liabilities, usually at increasing rates as income increases ( progressive… … Accounting dictionary
income tax — IT A direct tax on an individual s income. In general, individuals can earn income without paying tax up to a threshold, with subsequent income giving rise to tax liabilities, usually at increasing rates as income increases (progressive taxation) … Big dictionary of business and management
starting rate of income tax — A rate of income tax below the basic rate of income tax; it was reintroduced in the UK in 1999 to replace the lower rate of income tax. The starting rate is currently 10%, which is charged on taxable income up to £2090 (2005–06) … Accounting dictionary
starting rate of income tax — A rate of income tax below the basic rate of income tax; it was reintroduced in the UK in 1999 to replace the lower rate of income tax The starting rate is currently 10%, which is charged on taxable income up to £2090 (2005 06) … Big dictionary of business and management
basic rate of income tax — A rate of income tax between the starting rate and the higher rate. In the UK it is currently 22%, which is applied to that part of taxable income in the band £2091 to £32,400 (2005–06). See also: higher rate of income tax, starting rate of… … Accounting dictionary
basic rate of income tax — A rate of income tax between the starting rate and the higher rate. In the UK it is 22%, which is applied to that part of taxable income in the band £2091 to £32, 400 (2005 06). See also higher rate of income tax; starting rate of income tax … Big dictionary of business and management
lower rate of income tax — In the UK, a former rate of income tax below the basic rate of income tax. It was re introduced in 1992–93 at 20%; in 1999 it was replaced with the starting rate of income tax … Accounting dictionary
lower rate of income tax — A former rate of income tax below the basic rate of income tax In 1999 it was replaced with the starting rate of income tax … Big dictionary of business and management
