| 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 £3 of income above the income limit for age related allowances but will never be less than the basic personal allowance of 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) |
2,441 - 37,400 |
0 - 2,440 |
| Basic rate 20% (2) |
over 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 of limit of £2,440 the 10% starting rate for savings will not apply.
(2) Dividends are only subject to 10% tax up to 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 & 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 |
2009-10 |
2010-11 |
| Annual exempt amount |
(£) |
(£) |
| Individuals |
10,100 |
10,100 |
| Trusts |
5,050 |
5,050 |
| Rates |
|
|
|
Individuals and personal representatives *
(From 22 June 2010 gains subject to higher rates will be taxed at 28%) |
18% |
18%* |
| Companies |
CT rates apply |
CT rates apply |
| Limit for gains subject to entrepreneurs' relief (1) |
£1m |
£2m |
Limit for gains after 22 June 2010 £5m
(1) Disposals of whole or part of a business are subject instead to an effective rate of 10%.
|
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 |
£1.5 m |
£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 (7/47 of VAT-inclusive price) |
17.5% |
| Registration level from 1.4.10 |
£70,000 turnover per annum (future/past) |
| De-registration level from 1.4.10 |
£68,000 turnover per annum (future) |
