The standard percentage of tax that you pay, currently 22%. This means you pay 22p for every £1 taxable at the basic rate.
For 1999/2000, the basic rate of income tax is 23%. You pay tax at the starting rate (10%) on the first £1,500 of your taxable income (the starting rate band), at the basic rate (23%) on any income between £1,500 and £28,000 (the basic rate band), and tax at the higher rate (40%) on any income in excess of £28,000. However, you do not pay basic rate tax on savings income, such as interest and dividends. To the extent that your interest from banks or building societies falls within the basic rate band it is taxed at the savings rate of 20% instead of the basic rate. To the extent that your dividend income falls within the basic rate band it is taxed at the savings rate of 10%. To the extent that dividend income falls into the higher rate band it is taxed at 32.5%.
taxable income above £2,150 is taxed at the basic rate of 22%.
The most commonly paid rate of income tax, in between the lower and higher bands.
The most common used tax rate in the UK. Each individual’s income is taxed. The basic rate is 22% for those who earn between £2,021 and £31,400. Those who earn less will pay under a lower tax rate and those who earn more will pay under a higher tax rate.
The current rate of Basic Rate tax is 22% and this is the rate of tax paid on income between £1,960 and £30,500, except for savings income such as interest and dividends. Savings are likely to be taxed at 20% and dividends at 10% on income that falls in the Basic Rate tax band.
Under the unified system of taxation introduced in April 1973 there are now three levels of taxation; a lower rate, currently at 20%, the basic rate of 25%, and a higher rate of 40%.
The standard rate of tax paid by the majority of people. For the tax year 2004-2005 the rate has been set at 22% and covers income from £2,021 to £31,400. People earning less than this will pay lower rate tax, while those earning more than the upper limit will also pay higher rate tax.
The amount of tax you pay on income after you have earned over the lower rate tax band allowance. Basic rate tax is currently 22% (2005/06).