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Basic rate


The rate of income tax that applies to all taxable non-saving incomes above a lower limit, below which a starting rate is payable, and below an upper limit, above which a higher rate is payable; the basic rate in fact applies to most UK taxable income. In 2011-12 it was 20 per cent. This was previously called the standard rate.


Reference: Oxford Press Dictonary of Economics, 5th edt.