Personal Tax Rates
Income Tax Rates
2011/12 |
2010/11 |
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| Band £ | Rate % | Band £ | Rate % |
| 0 - 2,560 | 10* | 0 - 2,440 | 10* |
| 0 - 35,000 | 20** | 0 - 37,400 | 20** |
| 35,001 - 150,000 | 40*** | 37,401 - 150,000 | 40*** |
| Over 150,000 | 50**** | Over 150,000 | 50**** |
*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,560 (£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)
2011/12 |
2010/11 |
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| Personal allowance | - under 65 | 7,475 | 6,475 |
| - 65 - 74* | 9,940 | 9,490 | |
| - 75 and over* | 10,090 | 9,640 | |
| (Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) | |||
| Married couple's allowance (relief at 10%)* (Either partner 75 or over and born before 6 April 1935.) |
7,295 | 6,965 | |
| - min. amount | 2,800 | 2,670 | |
| * Age allowance income limit (Reduce age allowance by £1 for every £2 of excess income over £24,000 (£22,900).) |
24,000 | 22,900 | |
| Blind person’s allowance | 1,980 | 1,890 | |
Tax Credits
2011/12 |
2010/11 |
|
| Working Tax Credit | ||
| Basic element - max. | 1,920 | 1,920 |
| Childcare element 70% (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. | 2,555 | 2,300 |
| Family element | 545 | 545 |
| Baby addition | - | 545 |
Reductions in maximum rates
41% (39%) of income above £6,420* p.a.
*If only CTC is claimed, the threshold is £15,860 (£16,190) p.a. The family element of CTC is not reduced unless income is more than £40,000 (£50,000) p.a. when the withdrawal rate is 41% (6.67%).
Pension Premiums
2011/12
- Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.
- Any contributions in excess of £50,000 (£255,000), whether personal or by the employer, may be subject to income tax on the individual.
- Where the £50,000 limit is not fully used it may be possible to carry the unused amount forward for three years.
- 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.
Individual Savings Accounts (ISAs)
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|
2011/12 |
2010/11 |
|
| Overall annual investment limit | 10,680 | 10,200 | |
| Comprising | - cash up to | 5,340 max. | 5,100 max. |
| - balance in stocks and shares | 10,680 max. | 10,200 max. | |
Main Social Security Benefits
Weekly benefit |
2011/12 |
2010/11 |
|
| Basic retirement pension | - single person | £102.15 | £97.65 |
| - married couple | £163.35 | £156.15 | |
| Statutory pay rates - average weekly earnings £102 (£97) or over | |||
| Statutory Sick Pay | £81.60 | £79.15 | |
| Statutory Maternity Pay | |||
| - First six weeks | 90% of weekly earnings | ||
| - Next 33 weeks | £128.73* | £124.88* | |
| Statutory Paternity Pay - two weeks | £128.73* | £124.88* | |
| Statutory Adoption Pay - 39 weeks | £128.73* | £124.88* | |
| * Or 90% of weekly earnings if lower. | |||
Additional Paternity Pay and Leave may be available for a child due or adoptions matched on or after 3 April 2011.
Capital Gains Tax
2011/12 |
2010/1123.6.10 - 5.4.11 |
|
| Individuals | £ | £ |
| Exemption | 10,600 | 10,100 |
| Standard rate | 18% | 18% |
| Higher rate* | 28% | 28% (18%) |
| Trusts | ||
| Exemption | 5,300 | 5,050 |
| Rate | 28% | 28% (18%) |
| *For higher and additional rate taxpayers | ||
| Entrepreneurs’ Relief For disposals on or after 6 April 2011 the first £10m (£5m for disposals on or after 23 June 2010 and before 6 April 2011) of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above. |
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Inheritance Tax
|
Death rate % |
Lifetime rate % |
Chargeable transfers 2011/12 and 2010/11 £’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% 5%** |
Disadvantaged areas | Other | £ |
| £ | £ | ||
| 0 - 150,000 150,001 - 250,000* 250,001 - 500,000 500,000 - 1,000,000 Over 1,000,000** |
0 - 125,000 125,001 - 250,000* 250,001 - 500,000 500,001 - 1,000,000 Over 1,000,000** |
0 - 150,000 150,001 - 250,000 250,001 - 500,000 Over 500,000 - |
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* Relief available for first time buyers for transactions with an effective date on or after 25 March 2010 and before 25 March 2012.
** For transactions with an effective date on or after 6 April 2011.
Shares and securities - rate 0.5%.
