|
Income Tax Allowances
|
|
2009-10
|
2010-11
|
|
|
|
(£)
|
(£)
|
|
|
Personal allowance (1)
|
6,475
|
6,475
|
|
|
Income limit for personal allowance (1)
|
-
|
100,000
|
|
|
Personal allowance for people aged 65-74 (2)
|
9,490
|
9,490
|
|
|
Personal allowance for people aged 75 and over (2)
|
9,640
|
9,640
|
|
|
Married couple's allowance - aged 75 and over (2) (3)
|
6,965
|
6,965
|
|
|
Income limit for age-related allowances
|
22,900
|
22,900
|
|
|
Minimum amount of married couple's allowance
|
2,670
|
2,670
|
|
|
Blind person's allowance
|
1,890
|
1,890
|
|
|
|
|
(1) - From 6 April 2010 the personal allowance is reduced by £1 for every £2 by which income exceeds the income limit £100,000.
|
|
(2) - These allowances reduce by £1 for every £2 of income above the income limit for age related allowances but will never be less than the basic Personal allowance or minimum amount of Married Couple's allowance.
|
|
(3) - Tax relief for the Married Couple's allowance is given at the rate of 10%.
|
Tax Bands
|
|
2009-10
|
2010-11
|
|
|
(£)
|
(£)
|
|
Starting rate for savings 10% (1)
|
0 - 2,440
|
0 - 2,440
|
|
Basic rate 20% (2)
|
2,441 - 37,400
|
2,441 - 37,400
|
|
Higher rate 40% (3)
|
over 37,400
|
37,400 - 150,000
|
|
Additional rate 50% (4)
|
n/a
|
over 150,000
|
|
|
|
(1) If your non-savings income is above the starting rate limit of £2,440 the 10% starting rate for savings will not apply.
|
|
(2) Dividends are only subject to 10% tax upto the basic rate limit of £37,400. This tax is satisfied by the dividend tax credit so no further tax is payable on dividends received.
|
|
(3) Where taxable income is subject to the higher rate of tax, dividends are instead subject to 32.5% (Equivalent to 25% of the net amount received).
|
|
(4) Where taxable income is subject to the additional rate of tax, dividends are instead subject to 42.5% (Equivalent to 36.11% of the net amount received).
|
National Insurance - Rates and Allowances
|
|
2009-10
|
2010-11
|
|
Lower weekly earnings limit, primary Class 1
|
£95
|
£97
|
|
Upper weekly earnings limit, primary Class 1
|
£844
|
£844
|
|
Upper weekly accruals point
|
£770
|
£770
|
|
Primary weekly earnings threshold
|
£110
|
£110
|
|
Secondary weekly earnings threshold
|
£110
|
£110
|
|
Employees' primary Class 1 rate between primary earnings threshold and upper earnings limit
|
11%
|
11%
|
|
Employees' primary Class 1 rate above upper earnings limit
|
1%
|
1%
|
|
Employees' contracted-out rebate between primary earnings threshold and upper earnings limit
|
1.60%
|
1.60%
|
|
Married women's reduced rate between primary earnings threshold and upper earnings limit
|
4.85%
|
4.85%
|
|
Married women's rate above upper earnings limit
|
1%
|
1%
|
|
Employers' secondary Class 1 rate above secondary earnings threshold
|
12.80%
|
12.80%
|
|
Employers' contracted-out rebate, final salary-related schemes
|
3.70%
|
3.70%
|
|
Employers' contracted-out rebate, money-purchase schemes
|
1.40%
|
1.40%
|
|
Class 2 weekly rate
|
£2.40
|
£2.40
|
|
Class 2 small earnings exception
|
£5,075 per year
|
£5,075 per year
|
|
Special Class 2 weekly rate for share fishermen
|
£3.05
|
£3.05
|
|
Special Class 2 weekly rate for volunteer development workers
|
£4.75
|
£4.75
|
|
Class 3 voluntary weekly rate
|
£12.05
|
£12.05
|
|
Class 4 lower profits limit
|
£5,715 per year
|
£5,715 per year
|
|
Class 4 upper profits limit
|
£43,875 per year
|
£43,875 per year
|
|
Class 4 rate between lower profits limit and upper profits limit
|
8%
|
8%
|
|
Class 4 rate above upper profits limit
|
1%
|
1%
|
Capital Gains Tax: Individuals and Trustees
|
Annual exempt amount
|
2009-10
|
2010-11
|
|
|
(£)
|
(£)
|
|
Individuals
|
10,100
|
10,100
|
|
Trusts
|
5,050
|
5,050
|
|
|
|
|
|
Rates
|
|
|
|
Individuals and personal representatives
|
18%*
|
28%*
|
|
Companies
|
CT rates apply
|
CT rates apply
|
|
|
|
|
|
Limit for gains subject to entrepreneurs' relief (1)
|
1,000,000
|
5,000,000
|
| |
|
|
- With effect from 23 June 2010 the capital gains tax rate increased to 28% for higher rate taxpayers. The rate for standard rate taxpayers remains at 18%.
- Disposals of whole or part of a business are subject instead to an entrepreneurs' rate of 10%
With effect from 23 June 2010 the limit for gains subject to entrepreneurs' relief increased from 2,000,000 to 5,000,000
|
Inheritance Tax
|
|
2009-10
|
2010-11
|
|
|
(£)
|
(£)
|
|
Nil rate band for individuals (1)
|
£325,000
|
£325,000
|
|
Thereafter - lifetime gifts (2)
|
20%
|
20%
|
|
- on death
|
40%
|
40%
|
|
|
|
|
|
(1) Unused nil rate band can be used by surviving spouse or civil partner
|
|
(2) Increased to 40%, subject to tapering relief, on gifts made between 3 and 7 years pre death
|
Corporation Tax
|
|
Year to 31.3.2010
|
Year to 31.3.2011
|
|
|
|
Main rate
|
28%
|
28%
|
|
on Profits above
|
£1.5m
|
£1.5m
|
|
|
|
|
|
Small companies rate
|
21%
|
21%
|
|
on Profits between
|
£0 - £300k
|
£0 - £300k
|
|
|
|
|
|
Small/large marginal band
|
£300k - £1.5m
|
£300k - £1.5m
|
|
Fraction (effective rate)
|
7/400 (29.75%)
|
7/400 (29.75%)
|
VAT
| |
|
|
Standard rate (1)
|
20%
|
|
Registration level from 1.4.10
|
£70,000 turnover per annum
|
|
Deregistration level from 1.4.10
|
£68,000 turnover per annum
|
|
