Income Tax Act 2007 section 6

The basic rate, higher rate and additional rate

Section 6 establishes the three main rates at which income tax is charged and explains how these rates are set, while signposting the various other rates that apply to specific types of income.

• Income tax is charged at three main rates: the basic rate, the higher rate and the additional rate, each determined annually by Parliament
• Most individual income (other than savings and dividend income) is taxed at one of these three main rates depending on the level of the individual's total income
• Other income tax rates — including rates for savings, dividends, Welsh taxpayers, default rates and trust income — are set out in separate sections and do not need to be specified by Parliament each year
• Scottish taxpayers are subject to Scottish rates of income tax under separate provisions in the Scotland Act 1998