Moneyextra.com
- Our Online Buys
- Get a Loan
- Get a Credit Card
- Get a Mortgage
- Cheap Car Insurance
- About Us
- Contact Us
- My Portfolio
-
Money News
- Finance Features
- News Feeds
- Guides
- Dictionary
Lower Rate of Tax
Additional Services
- Insurance - need home, travel or car insurance?
- Credit Reports - how credit worthy are you?
The lower rate of income tax, was reduced to 10%, effective April 6 1999, and is payable on the first chunk of your income after you have earned more than your annual Personal Allowance . The lower rate of tax was introduced by Conservative Chancellor Norman Lamont in March 1992. Labour Chancellor Gordon Brown halved the starting rate of tax in his March 1999 Budget.
In Budget 2007, Gordon Brown announced that he would be abolishing this lower rate of tax at the same time as the basic rate of tax was being cut by 2p to 20%. This change took effect in April 2008.
See our tax tables , and if you're looking to save tax - see our guide to saving personal tax.
Last Updated: April 2008 © Moneyextra.com
Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.