Savings
income is generally treated as the highest part
of total income.
Interest
is taxed at 10% within the starting rate band, 20% within the basic rate band
and 40% thereafter.
Income from dividends is taxed at 10% within the starting
and basic rate bands and at 32.5% thereafter (these rates are applied to the dividend
grossed-up by a tax credit of 1/9).
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