Basic Rate of Income Tax

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Basic Rate of Income Tax

The term for the second-lowest marginal tax rate in the United Kingdom. In 2008, one paid the basic rate on all personal income and savings (after personal allowances) below 37,400 pounds, unless one earned less than 2,440 pounds, in which case one paid the lower rate. The basic rate on dividend income in 2008 was 10%. Most Britons pay the basic rate on most of their income.
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Some exploit Entrepreneurs' Allowance, slashing the rate to just 10% - less than the basic income tax rate of 20%.
The basic income tax rate is currently 20%, yet for most of the Thatcher years it was 29%.
He scrapped a 10 per cent surcharge on income tax (that had increased the peak basic income tax rate to 33 per cent even before specific levies to finance education) and increased certain tax-free allowances.
The present basic income tax rate of 20p and higher 40p rate are set by the UK Government.
ONLY a retirement age of 70, a basic income tax rate of 37 per cent or a ten per cent slashing of public spending would get Britain's public debt under control within a decade, a think tank has concluded.
He pointed to a cut in the basic income tax rate from 22p to 20p, the lowest in 75 years, alongside increases in tax credits and allowances at which people have to start paying tax.
Oxfam estimated it would have lost at least pounds 2 million a year from the introduction of the lower basic income tax rate.
Now the basic income tax rate is 22 percent and 40 percent on anything over 29,900 [pounds sterling] (about $55,250).
But with no council tax, no VAT, no national insurance and a basic income tax rate of 20 per cent, Falklanders get to keep a much greater share of their salaries.
In addition to the basic income tax rate cuts, the 2001 act includes changes in joint-filer benefits and tax cuts for education savings and child care.
They are unanimous in predicting that, buoyed by strong government finances, Mr Brown will at last help the low paid by introducing Labour's long-promised 10p basic income tax rate.
The 2p cut in the 22p basic income tax rate for the majority was completely overshadowed by the screams and sympathy for those who initially lost under the abolition of the 10p rate.

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