Rates & Allowances
Rates and allowances for income tax, corporation tax, capital gains tax, inheritance tax and the pension schemes earnings cap are set out below.
|
Income tax allowances |
2009-10 (£) |
2010-11 (£) |
2011-12 (£) |
|---|---|---|---|
|
Personal allowance (1) |
6,475 |
6,475 |
7,475 |
|
Income limit for personal allowance |
n/a |
100,000 |
100,000 |
|
Personal allowance for people aged 65-74 (1) (2) |
9,490 |
9,490 |
9,990 |
|
Personal allowance for people aged 75 and over (1) (2) |
9,640 |
9,640 |
10,090 |
|
Married couple's allowance for people born before 6 April 1935 (2) (3) (4) |
n/a |
n/a |
n/a |
|
Income limit for age-related allowances |
22,900 |
22,900 |
24,000 |
|
Married couple's allowance - aged 75 or more (2) (3) |
6,965 |
6,665 |
7.295 |
|
Minimum amount of married couple's allowance |
2,670 |
2,670 |
2,800 |
|
Blind person's allowance |
1,890 |
1,890 |
1980 |
1. From the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
2. These allowances reduce where the income is above the income limit for age-related allowances by £1 for every £2 of income above the limit. For the 2009-10 they will never be less than the basic Personal Allowance or minimum amount of Married Couple's Allowance. However, from the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.
3. Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.
4. In the 2009-10 tax year all Married Couple's Allowance claimants in this category became 75 at some point during the year and therefore entitled to the higher amount of the allowance - for those aged 75 and over.
Income Tax rates and taxable Bands
|
Taxable Bands Allowances |
2009-10 (£) |
2010-11 (£) |
2011-12 (£) |
|---|---|---|---|
|
Starting rate 10% * |
0 - 2,440 |
0 -2,440 |
0 -2,560 |
|
Basic rate 20% |
2,441 - 37,400 |
2,441 -37,400 |
2,561 -35,000 |
|
Higher rate 40% |
Over 37,400 |
37,401-150,000 |
35,001--150,000 |
|
Additional rate 50% |
n/a |
over £150,000 |
over £150,000 |
* 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 for the 2008-09 and 2009-10 tax years are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate. For the 2010-11 tax year, as well as these rates there is a new dividend additional rate of 42.5 per cent.
Capital Gains Tax: Individuals and Trustees
|
Annual exempt amount |
2009-10 (£) |
2010-11 (£) |
2010-12 (£) |
|---|---|---|---|
|
Individuals etc |
10,100 |
10,100 |
10,600 |
|
Other trustees |
5,050 |
5,050 |
5,300 |
Corporation Tax rates
|
Profits |
2009 |
2010 |
2011 |
2012 |
|---|---|---|---|---|
|
Small Profits Rate* |
21% |
21% |
20% |
|
|
Small Profits Rate can be claimed by qualifying companies with profits at a rate not exceeding |
£300,000 |
£300,000 |
£300,000 |
|
|
Marginal Relief Lower Limit |
£300,000 |
£300,000 |
£300,000 |
|
|
Marginal Relief Upper Limit |
£1,500,000 |
£1,500,000 |
£1,500,000 |
|
|
Standard Fraction |
7/400 |
7/400 |
3/200 |
|
|
Main rate of Corporation Tax* |
28%* |
28%* |
26%* |
25%* |
|
Special rate for unit trusts and open-ended investment companies |
20% |
20% |
20% |
Rates and Allowances - Inheritance tax
Inheritance tax threshold
|
Year |
Individuals (£) |
Married Couples & Civil Partners(£) |
|---|---|---|
|
2007 - 08 |
300 000 |
N/A |
|
2008 - 09 |
312 000 |
624,000 |
|
2009 - 10 |
325,000 |
650,000 |
|
2010 - 11 |
325,000 |
650,000 |
|
2011 - 12 |
325,000 |
650,000 |
n.b. The value of estates over and above the allowance is taxed at 40%
Rates and Allowances - National Insurance Contributions
|
£ per week |
2009-10 |
2010-11 |
2011-12 |
|---|---|---|---|
|
Lower earnings limit, primary Class 1 |
£95 |
£97 |
£102 |
|
Upper earnings limit, primary Class 1 |
£844 |
£844 |
£817 |
|
Upper accrual points |
£770 |
£770 |
£770 |
|
Primary threshold |
£110 |
£110 |
£139 |
|
Secondary threshold |
£110 |
£110 |
£136 |
|
Employees’ primary Class 1 rate between primary threshold and upper earnings limit |
11% |
11% |
12% |
|
Employees’ primary Class 1 rate above upper earnings limit |
1% |
1% |
21% |
|
Class 1A rate on employer provided benefits (1) |
12.8% |
12.8% |
13.8% |
|
Employees’ contracted-out rebate |
1.6% |
1.6% |
1.6% |
|
Married women’s reduced rate between primary threshold and upper earnings limit |
4.85% |
4.85% |
5.85% |
|
Married women’s rate above upper earnings limit |
1% |
1% |
2% |
|
Employers’ secondary Class 1 rate above secondary threshold |
12.8% |
12.8% |
13.8% |
|
Employers’ contracted-out rebate, salary-related schemes |
3.7% |
3.7% |
3.7% |
|
Employers’ contracted-out rebate, money-purchase schemes |
1.4% |
1.4% |
1.4% |
|
Class 2 rate |
£2.40 |
£2.40 |
£2.50 |
|
Class 2 small earnings exception |
£5,075 |
£5,075 |
£5,315 |
|
Special Class 2 rate for share fishermen |
£3.05 |
£3.05 |
£3.15 |
|
Special Class 2 rate for volunteer development workers |
£4.75 |
£4.85 |
£5.10 |
|
Class 3 rate |
£12.05 |
£12.05 |
£12.05 |
|
Class 4 lower profits limit (per year) |
£5,715 |
£5,715 |
£7,225 |
|
Class 4 upper profits limit (per year) |
£43,875 |
£43,875 |
£42,475 |
|
Class 4 rate between lower profits limit and upper profits limit |
8% |
8% |
9% |
|
Class 4 rate above upper profits limit |
1% |
1% |
2% |
|
Additional primary Class 1 percentage rate on deferred employments |
1% |
1% |
2% |
|
Additional Class 4 percentage rate where deferment has been granted |
1% |
1% |
2% |
(1) Class 1A NICs are calculated using the previous year’s benefit figure and the rate appropriate at the due date – July.
Rates and Allowances - Tax Credits/Child Benefit
Rates and threshold
The rates and thresholds of the tax credits are shown below.
Working Tax Credit - £ per year (unless stated)
|
Rates and Thresholds |
April 2010 |
April 2011 |
|---|---|---|
|
Basic element |
£1,920 |
£1,920 |
|
Couple and lone parent element |
£1,890 |
£1,950 |
|
30 hour element |
£790 |
£790 |
|
Disabled worker element |
£2,570 |
£2,650 |
|
Severe disability element |
£1,095 |
£1,130 |
|
50+ Return to work payment (16-29 hours) |
£1,320 |
£1,365 |
|
50+ Return to work payment (30+ hours) |
£1,965 |
£2,030 |
Childcare element of the Working Tax Credit - £ per year (unless stated)
|
Rates and Thresholds |
April 2010 |
April 2011 |
|---|---|---|
|
Maximum eligible cost for one child |
£175 per week |
£175 per week |
|
Maximum eligible cost for two or more children |
£300 per week |
£300 per week |
|
Percentage of eligible costs covered |
80% |
80% |
|
Child Tax Credit Family element |
£545 |
£545 |
|
Family element, baby addition |
£545 |
Withdrawn |
|
Child element |
£2,300 |
£2,555 |
|
Disabled child element |
£2,715 |
£2,800 |
|
Severely disabled child element |
£1,095 |
£1,130 |
Income thresholds and withdrawal rates - £ per year (unless stated)
|
Rates and Thresholds |
April 2010 |
April 2011 |
|---|---|---|
|
First income threshold |
£6,420 |
£6,420 |
|
First withdrawal rate (per cent) |
39% |
41% |
|
Second income threshold |
£50,000 |
£40,000 |
|
Second withdrawal rate (per cent) |
6.67% |
41% |
|
First threshold for those entitled to Child Tax Credit only |
£16,190 |
£15,860 |
|
Income disregard |
£25,000 |
£10,000 |
Child Benefit/Guardian Allowance - £ per week
|
Rates |
April 2010 |
April 2011 |
|---|---|---|
|
Eldest/Only Child |
£20.30 |
£20.30 |
|
Other Children |
£13.40 |
£13.40 |
|
Guardian’s Allowance |
£14.30 |
£14.75 |
Published with the consent of HMSO - Inland Revenue copyright is acknowledged