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) |
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| 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| *For 2010/11 the personal allowance is withdrawn at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. |
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| COMPANY TAXATION | FY2010 | FY2009 |
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| 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 |
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| 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 |
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| Threshold | £325,000 | |
| Death rate | 40% | |
| VAT | ||
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| 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 | |
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| (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. | ||