AT-A-GLANCE

Note: It must be remembered that these proposals are subject to amendment during the passage of the Finance Bill.

PERSONAL TAXATION 2010/11 2009/10
Personal allowance
general £6,475* £6,475
aged 65 or over in year
of assessment
£9,490 £9,490
aged 75 or over in year
of assessment
£9,640 £9,640
age allowance income limit £22,900 £22,900
minimum where income
exceeds limit
£6,475 £6,475
Married couple's allowance
(10% relief)
   
either partner born before
6 April 1935
N/A N/A
either partner aged 75 or
over in year of assessment
£6,965 £6,965
age allowance income limit £22,900 £22,900
minimum where income
exceeds limit
£2,670 £2,670
Blind person's allowance £1,890 £1,890
Income tax rates    
Starting savings rate 10% 10%
on income up to £2,440** £2,440**
Basic rate 20% 20%
on taxable income up to £37,400 £37,400
Higher rate 40% 40%
on taxable income over £37,400 £37,400
Additional rate 50% N/A
on taxable income over £150,000 N/A
Lower rate on dividend income 10% 10%
Higher rate on dividend income 32.5% 32.5%
Additional rate on dividend
income
42.5% N/A
Pension schemes allowances    
Annual allowance £255,000 £245,000
Lifetime allowance £1,800,000 £1,750,000
*For 2010/11 the personal allowance is withdrawn at a rate of £1 for every £2 of income above £100,000.
**Starting rate applies only to savings income. If taxable non-savings income is above this limit, the starting rate is not applicable.
 
COMPANY TAXATION FY2010 FY2009
Corporation tax rates    
All companies (except below) 28% 28%
Companies with small profits 21% 21%
– 21% rate limit £300,000 £300,000
– marginal relief limit £1,500,000 £1,500,000
– marginal relief fraction 7/400 7/400
– marginal rate 29.75% 29.75%
     
CAPITAL GAINS TAX Before 23.6.10 After 22.6.10
Rate – standard rate 18%* 18%*
–higher rate 18%* 28%*
–trustees and personal representatives 18%* 28%*
General exemption limit £10,100 £10,100
*subject to available reliefs    
     
INHERITANCE TAX  
Transfers after 5/4/2009
Threshold   £325,000
Death rate   40%
     
VAT    
Standard rate after 3 January 2011 20%
Standard rate 1 Jan 2010 to 3 Jan 2011 17.5%
Registration threshold after 31 March 2010 £70,000
(previously £68,000 after 30 April 2009)  
     
NATIONAL INSURANCE   2010/11
(2009/10 in brackets where different)
Class 1 contributions    
Not contracted out    
The employee contribution is 11% of earnings between £110 and £844 p.w. plus 1% of all earnings above £844 p.w. The employer contribution is 12.8% of all earnings in excess of the first £110 p.w.
Contracted out    
The `not contracted out' rates for employees are reduced on the band of earnings from £110 p.w. to £770 p.w. by 1.6%. For employers, they are reduced on the band of earnings from £110 p.w. to £770 p.w. by 3.7% for employees in salary-related schemes or 1.4% for employees in money purchase schemes. In addition, there is an employee rebate of 1.6% and an employer rebate of 3.7% or 1.4%, as appropriate, on earnings from £97 (£95) p.w. up to £110 p.w.
 
Class 1A and 1B contributions 12.8%
   
Class 2 contributions    
Flat weekly rate   £2.40
Exemption limit   £5,075
 
Class 3 contributions    
Flat weekly rate   £12.05
 
Class 4 contributions    
8% on the band of profits between £5,715 and £43,875 plus 1% on all profits above £43,875.