Personal Tax Rates
Income Tax Rates
2010/11 |
2009/10 |
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| Band £ | Rate % | Band £ | Rate % |
| 0 - 2,440 | 10* | 0 - 2,440 | 10* |
| 2,441 - 37,400 | 20** | 2,441 - 37,400 | 20** |
| 37,401 - 150,000 | 40*** | Over 37,400 | 40*** |
| Over 150,000 | 50**** | ||
*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,440.
** Except dividends (10%).
*** Except dividends (32.5%).
**** Except dividends (42.5%).
Other income taxed first, then savings income and finally dividends.
Income Tax Reliefs
(Allowances that reduce taxable income)
2010/11 and 2009/10 |
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| Personal allowance | - under 65 | 6,475 |
| - 65 - 74* | 9,490 | |
| - 75 and over* | 9,640 | |
| (For 2010/11 reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) | ||
| Married couple's allowance (relief at 10%) | - 75 and over* | 6,965 |
| - min. amount | 2,670 | |
| * Age allowance income limit (Reduce age allowance by £1 for every £2 of excess income over £22,900.) |
22,900 | |
| Blind person’s allowance | 1,890 | |
Tax Credits
2010/11 |
2009/10 |
|
| Working Tax Credit | ||
| Basic element - max. | 1,920 | 1,890 |
| Childcare element 80% of eligible costs up to £175 per week (£300 if two or more children). |
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| Child Tax Credit (CTC) | ||
| Child element per child - max. | 2,300 | 2,235 |
| Family element | 545 | 545 |
| Baby addition | 545 | 545 |
Reductions in maximum rates
39% of income above £6,420* p.a.
*If only CTC is claimed, the threshold is £16,190 (£16,040) p.a. The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.
Pension Premiums
2010/11 and 2009/10
- Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.
- Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’. Tax relief for large contributions may be spread over several years.
- Any contributions in excess of £255,000 (£245,000), whether personal or by the employer, may be subject to income tax on the individual.
- An additional income tax charge may apply on certain non-regular contributions.
Individual Savings Accounts (ISAs)
2010/11 |
£ |
|
| Overall annual investment limit | 10,200 | |
| Comprising | - cash up to | 5,100 max. |
| - balance in stocks and shares | 10,200 max. | |
Main Social Security Benefits
Weekly benefit |
2010/11 |
2009/10 |
|
| Basic retirement pension | - single person | £97.65 | £95.25 |
| - married couple | £156.15 | £152.30 | |
| Statutory pay rates - average weekly earnings £97 (£95) or over | |||
| Statutory Sick Pay | £79.15 | £79.15 | |
| Statutory Maternity Pay | |||
| - First six weeks | 90% of weekly earnings | ||
| - Next 33 weeks | £124.88* | £123.06* | |
| Statutory Paternity Pay - two weeks | £124.88* | £123.06* | |
| Statutory Adoption Pay - 39 weeks | £124.88* | £123.06* | |
| * Or 90% of weekly earnings if lower. | |||
Capital Gains Tax
2010/11 and 2009/10 |
|
| Individuals | £ |
| Exemption | 10,100 |
| Balance of gains | 18% |
| Trusts | |
| Exemption | 5,050 |
| Balance of gains (reduced by taper relief* for 2007/08). | 18% |
| Entrepreneurs’ Relief The first £2m (£1m for disposals before 6 April 2010) of qualifying gains are charged at an effective rate of 10%. Gains in excess of the limit are charged at 18%. |
|
Inheritance Tax
|
Death rate % |
Lifetime rate % |
Chargeable transfers 2010/11 and 2009/10 £’000 |
| Nil | Nil | 0 - 325* |
| 40 | 20 | Over 325* |
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
| Reliefs | ||||
| Annual exemption | £3,000 | Marriage | - parent | £5,000 |
| Small gifts | £250 | - grandparent | £2,500 | |
| - bride/groom | £2,500 | |||
| - other | £1,000 | |||
| Reduced charge on gifts within seven years of death | |||||
| Years before death | 0-3 | 3-4 | 4-5 | 5-6 | 6-7 |
| % of death charge | 100 | 80 | 60 | 40 | 20 |
Stamp Duty and Land Tax
Land and buildings (on full consideration paid)
| Land and buildings (on full consideration paid) |
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| Rate | Residential property* | Non-residential | |
| Nil 1%* 3% 4% |
Disadvantaged areas | Other | £ |
| £ | £ | ||
| 0 - 150,000 150,001 - 250,000* 250,001 - 500,000 Over 500,000 |
0 - 125,000 125,001 - 250,000* 250,001 - 500,000 Over 500,000 |
0 - 150,000 150,001 - 250,000 250,001 - 500,000 Over 500,000 |
|
* Relief available for first time buyers for transactions with an effective date on or after 25 March 2010 and before 25 March 2012.
Shares and securities - rate 0.5%.
