Income Tax rates and bands

	2006/07			2007/08
Lower rate on first	£2,150`			£2,230
Basic rate on next	31,150			32,370
Higher rate at taxable income over	33,300			34,600
Rate differs for Dividends/Interest/Other	D	I	O	D	I	O
Lower rate	10%	10%	10%	10%	10%	10%
Basic rate	10%	20%	22%	10%	20%	22%
Higher rate	32.5%	40%	40%	32.5%	40%	40%
Dividends taxed as highest part of income, then interest
Discretionary trust rate (25% on dividends)	34%			34%