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Rates and Allowances
|
Income Tax Allowances
|
|
2008-09 (£) |
2009-10 (£) |
|
Personal allowance |
6.035 |
6,475 |
|
Personal allowance for people aged 65-74 (1) |
9,030 |
9,490 |
|
Personal allowance for people aged 75 and over (1) |
9,180 |
9,640 |
|
Married couple's allowance (born before 6th April 1935 but aged under 75) (1) (2)(3) |
6,535 |
n/a |
|
Married couple's allowance - aged 75 and over (1) (2) |
6,625 |
6,965 |
|
Income limit for age-related allowances |
21,800 |
22,900 |
|
Minimum amount of married couple's allowance |
2,540 |
2,670 |
|
Blind person's allowance |
1,800 |
1,890 |
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(1) - These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. They will never be less than the basic Personal allowance or minimum amount of Married Couple's allowance. |
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(2) - Tax relief for the Married Couple's allowance is given at the rate of 10 per cent. | (3) - In the 2009-10 tax year all Married Couple's Allowance claimants in this category will become 75 at some point during the year and will therefore be entitled to the higher amount of the allowance - for those aged 75 and over.
Tax Bands
|
|
2008-09 (£) |
2009-10 (£) |
|
Starting rate for savings 10%* |
0 - 2,320 |
0 - 2440 |
|
Basic rate 20% |
2,321 - 34,800 |
2,441 - 37,400 |
|
Higher rate 40% |
over 34,800 |
over 37,400 |
* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.
The rates available for dividends are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate.
National Insurance
|
£ per week |
2008-09 |
2009-10 |
|
Lower earnings limit, primary Class 1 |
£90 |
£95 |
|
Upper earnings limit, primary Class 1 |
£770 |
£844 |
|
Upper accruals point |
n/a |
£770 |
|
Primary threshold |
£105 |
£110 |
|
Secondary threshold |
£105 |
£110 |
|
Employees' primary Class 1 rate between primary threshold and upper earnings limit |
11% |
11% |
|
Employees' primary Class 1 rate above upper earnings limit |
1% |
1% |
|
Employees' contracted-out rebate |
1.6% |
1.6% |
|
Married women's reduced rate between primary 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 threshold |
12.8% |
12.8% |
|
Employers' contracted-out rebate, salary-related schemes |
3.7% |
3.7% |
|
Employers' contracted-out rebate, money-purchase schemes |
1.4% |
1.4% |
|
Class 2 rate |
£2.30 |
£2.40 |
|
Class 2 small earnings exception |
£4,825 per year |
£5,075 per year |
|
Special Class 2 rate for share fishermen |
£2.95 |
£3.05 |
|
Special Class 2 rate for volunteer development workers |
£4.50 |
£4.75 |
|
Class 3 rate |
£8.10 |
£12.05 |
|
Class 4 lower profits limit |
£5,435 per year |
£5,715 per year |
|
Class 4 upper profits limit |
£40,040 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% |
Class 1A NICs payable in July 2008 for benefits provided in the 2007-08 tax year are due at 12.8%.
Capital Gains Tax: Individuals and Trustees
|
Annual exempt amount |
2007-08 (£) |
2008-09 (£) |
2009-10 (£) |
|
Individuals etc* |
9 200 |
9 600 |
10 100 |
|
Other trustees |
4 600 |
4 800 |
5 050 |
Inheritance Tax
|
Charges on or after 6th April 2009 |
Rates % |
Charges between 6th April 2008 and 5th April 2009 |
|
0 - £325,000 |
NIL |
0 - £312,000 |
|
Above £325,000
|
40% |
Above £312,000 |
Corporation Tax
|
|
Year to 31.3.2009 |
31.3.2010 |
|
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%) |
Value Added Tax
|
Standard rate (3/23 of VAT-inclusive price) |
15% |
|
Registration level from 1.5.09 |
£68,000 per annum |
|
Deregistration level from 1.5.09 |
£66,000 per annum |
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Standard rate rises to 17.5% on 1.1.10 |
Published with the consent of HMSO - H M Customs & Revenue copyright is acknowledged
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