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

PERSONAL TAXATION	2009/10	2008/09
Personal allowance
general	£6,475	£6,035
aged 65 or over in year of assessment	£9,490	£9,030
aged 75 or over in year of assessment	£9,640	£9,180
age allowance income limit	£22,900	£21,800
minimum where income exceeds limit	£6,475	£6,035
Married couple’s allowance (10% relief)
either partner born before 6 April 1935	N/A	£6,535
either partner aged 75 or over in year of assessment	£6,965	£6,625
age allowance income limit	£22,900	£21,800
minimum where income exceeds limit	£2,670	£2,540
Blind person’s allowance	£1,890	£1,800
Income tax rates
Starting savings rate	10%	10%
on income up to	£2,440*	£2,320*
Basic rate	20%	20%
on taxable income
up to	£37,400	£34,800
Higher rate	40%	40%
on taxable income over	£37,400	£34,800
Lower rate on dividend income	10%	10%
Higher rate on dividend income	32.5%	32.5%
Pension schemes allowances
Annual allowance	£245,000	£235,000
Lifetime allowance	£1,750,000	£1,650,000
*Starting rate applies only to savings income. If taxable non-savings income is above this limit, the starting rate is not applicable.
COMPANY TAXATION	FY2009	FY2008
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%
For certain profits from oil activities, the full rate and small profits rate are 30% and 19% respectively for both years, the marginal relief fraction is 11/400 and the marginal rate is 32.75%.
CAPITAL GAINS TAX	2009/10	2008/09
Rate— general	18%*	18%*
— trustees and personal representatives	18%*	18%*
General exemption limit	£10,100	£9,600
*subject to available reliefs
INHERITANCE TAX		Transfers after 5/4/2009
Threshold		£325,000
(previously £312,000 for transfers after 5 April 2008)
Death rate		40%
VAT
Standard rate 1 Dec 2008 to 31 Dec 2009		15%
Standard rate 1 Jan 2010 to 31 Mar 2010		17.5%
Registration threshold after 30 April 2009		£68,000
(previously £67,000 after 31 March 2008)
NATIONAL INSURANCE		2009/10
(2008/09 in brackets where different)
Class 1 contributions
Not contracted out
The employee contribution is 11% of earnings between £110 (£105) and £844 (£770) p.w. plus 1% of all earnings above £844 (£770) p.w. The employer contribution is 12.8% of all earnings in excess of the first £110 (£105) p.w.
Contracted out
The ‘not contracted out’ rates for employees are reduced on the band of earnings from £110 (£105) p.w. to £770 p.w. by 1.6%. For employers, they are reduced on the band of earnings from £110 (£105) 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 £95 (£90) p.w. up to £110 (£105) p.w.
Class 1A and 1B contributions		12.8%
Class 2 contributions
Flat weekly rate	£2.40	(£2.30)
Exemption limit	£5,075	(£4,825)
Class 3 contributions
Flat weekly rate	£12.05	(£8.10)
Class 4 contributions
8% on the band of profits between £5,715 (£5,435) and £43,875 (£40,040) plus 1% on all profits above £43,875 (£40,040).