meaning of Basic Rate Tax

Basic Rate Tax meaning in Finance Dictionary

The main price of tax when you look at the UK, which for the 12 months 2006-2007 is 22percent. The price is placed on every individual's nonexempt earnings, which can be determined as: income less reliefs and allowances. The basic rate is only applied to the income between £2,151 and £33,300 (for the taxation 12 months 2006-2007). For earnings from £1-£2,150, the tax price is 10percent (starting rate); from £2,151-£33,300, the tax rate is 22% (fundamental price); and over £33,300, the taxation price is 40per cent (higher rate).