Basic Rate of Income Tax

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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It has been a year since he announced, as Chancellor, that the basic rate of income tax was to be cut by 2p - paid for by abolishing the lowest rate of 10p.
While its suggestion of a 2p cut in the basic rate of income tax will be welcomed by traditional Tory supporters, David Cameron and his Shadow Chancellor, George Osborne, want to rule the idea out so as to appear less right-wing.
Chancellor Gordon Brown cut the basic rate of income tax from 23p to 22p in the pound as part of Labour's commitment to keep taxes down.
7bn while a basic rate of income tax could bring in pounds 3bn.
CHANCELLOR Gordon Brown wants to cut the basic rate of income tax by 2p to 20p, it was claimed last night.
But with the basic rate of income tax being reduced by two pence in the pound next month, the amount charities can reclaim was set to be reduced.
The Tax Commission, set up at the beginning of the year by Mr Cameron, is calling for the basic rate of income tax to be cut from 22% to 20%, with the 10% rate being scrapped and the personal allowance being raised to pounds 7,185.
The Tories were expected to claim this would mean at least 2p on the basic rate of income tax after it was cut by Chancellor Gordon Brown from 23p to 22p in the pound.
A report by the NAO said that the lost revenue is the equivalent of around 3p on the basic rate of income tax.
Mr Swinney's tax-the-rich plans caused turmoil at the SNP conference in September, when he also promised the SNP would cut the basic rate of income tax to 15p.
The voluntary sector had faced losing over pounds 90 million a year in Gift Aid after the basic rate of income tax falls from 22 per cent to 20 per cent on April 5.
The poll, conducted by ICM, found 79% supported a 'significant' increase of the pounds 32,500 threshold for 40% tax while 76% wanted to see a lowering of the basic rate of income tax.

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