Tax Brackets

The rates of income tax payable on taxable income (they apply above the personal allowance), known as tax rates or bands. For the tax year 2007-08 in the UK, the brackets are: £1-£2,230 attracts a tax rate of 10% (the starting rate); £2,231-£34,600, a tax rate of 22% (the basic rate); above £34,600 the tax rate is 40% (the higher rate).