| Savings
income is generally treated as the highest part of total income.
A 10% starting rate, for savings income only, applies to the
extent that such income falls within the first £2,440
of taxable income (£2,440 for 2009/2010) If taxable
not-savings income exceeds this limit, the 10% rate does not
apply. Income from dividends is taxed at
10% within the starting and basic rate tax bands and at 32.5%
in the higher rate band and, for 2010/11, at 42.5% thereafter
(these rates are applied to the dividend grossed-up by a tax
credit of 1/9).
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