tax rates

[woolleysheep]

can anyone remeber the income tax rates in year 1960 or there about

[buildersmate]

It was called surtax on those days but the bands were far more numerous than the two bands (normal and higher rate) that exist today.
surtax was 10% on taxable income over £2k, rising to 50% surtax on all income above £15k. There were 10 bands in total, between 10% and 50%.

[ABerrant]

Surtax, as the name implies, was a further tax after Income Tax had been paid and was usually accounted for in the tax year following that in which the income was earned (and Income Tax paid following the introduction of PAYE during the 1940s).

The average earned income in 1960 was around £750 p.a., well below half of the £2000 threshold for Surtax. Indeed, Surtax was applicable to around only 5% of the working population at that time.

Taxable earnings were calculated after a dizzying array of allowances and reliefs had been deducted from the income. Circumstances which reduced taxable earnings included marriage status, children (separately under 11, not over 15, and over 16), housekeeper or dependent relative.

See if you can unscramble the figures given in this 1961 extract from Hansard...
http://hansard.millba...41P0_19610607_HOC_498

...else try this from the HMRC archive...
http://www.hmrc.gov.u...eliefs_1948to1973.pdf

[ABerrant]

A clearer breakdown of Income Tax rates (after allowances and reliefs) from the HMRC archives...

Reduced Rate:
~~~~~~~~~~~~
Up to £60 - 8.75%
£60 to £210 - 21.25%
£210 to £360 - 31.25%

Basic Rate:
~~~~~~~~~
Over £360 - 38.75%

http://www.hmrc.gov.u...ucture/00ap_a2a_2.htm