General income (salary, pensions, profits, rent) are taxed first and thus use the lower bands first. Savings are taxed next and dividends last.

# The basic and higher rate bands are extended by Gift Aid donations and by pension contributions up to permitted limits.

## Dividends are taxed in the 3 bands at 10%, 32.5% and 37.5% (2012/2013 42.5%) from which is deducted the 10% tax credit attaching to all dividends.