Guide to rates and allowances
Income Tax Allowances
2010 - 2011 (£) |
2011 - 2012 (£) |
|
| Personal allowances (1) | 6,475 |
7,475 |
| Income limit for personal allowance (1) | 100,000 |
100,000 |
| Personal allowance for people aged 65 - 74 (1) (2) | 9,490 |
9,490 |
| Personal allowance for people aged 75 and over (1) (2) | 9,640 |
10,090 |
| Married couple's allowance - aged 75 and over (2) (3) | 6,965 |
7,295 |
| Income limit for age-related allowances | 22,900 |
24,000 |
| Minimum amount of married couple's allowance | 2,670 |
2,800 |
| Blind person's allowances | 1,890 |
1,980 |
| (1) - From 6th April 2010 the personal allowance is reduced by £1 for every £2 by which income exceeds the income limit £100,000 |
| (2) - These allowances reduce by £1 for every £2 of income above the income limit for age related allowances but will never be less than the basic personal allowance or minimum of married couple's allowance. |
| (3) - available to people born before 6th April 1935. Tax relief for the married couple's allowance is given at the rate of 10% |
Tax Bands
2010 - 2011 (£) |
2011 - 2012 (£) |
|
| Starting rate for savings 10% (1) | 0 - 2,440 |
0 - 2,560 |
| Basic rate 20% (2) | 2,441 - 37,400 |
2,561 - 35,000 |
| Higher rate 40% (3) | 37,401 - 150,000 |
35,001 - 150,000 |
| Additional rate 50% (4) | over 150,000 |
over 150,000 |
| (1) - If your non-savings income is above the starting rate limit of £2,560 (2010 - 2011 £2,440) the 10% starting rate for savings will not apply. |
| (2) - Dividends are only subject to 10% tax upto the basic rate limit of £35,000 (2010 - 2011 £37,400). This tax is satisfied by the dividend tax credit so no further tax is payable on dividends received. |
| (3) - Where taxable income is subject to the higher rate of tax, dividends are instead subject to 32.5% (Equivalent to 25% of the net amount received). |
| (4) - Where taxable income is subject to the additional rate of tax, dividends are instead subject to 42.5% (Equivalent to 36.11% of the net amount received). |
National Insurance - Rates and Allowances
2010 - 2011 |
2011 - 2012 |
|
| Lower weekly earnings limit, primary Class 1 | £97 |
£102 |
| Upper weekly earnings limit, primary Class 1 | £844 |
£817 |
| Upper weekly accruals point | £770 |
£770 |
| Primary weekly earnings threshold | £110 |
£139 |
| Secondary weekly earnings threshold | £110 |
£136 |
| Employees' primary Class 1 rate between primary earnings threshold and upper earnings limit | 11% |
12% |
| Employees' primary Class 1 rate above upper earnings limit | 1% |
2% |
| Employees' contracted-out rebate between primary earnings threshold and upper earnings limit | 1.60% |
1.60% |
| Married women's reduced rate between primary earnings threshold and upper earnings limit | 4.85% |
5.85% |
| Married women's rate above upper earnings limit | 1% |
2% |
| Employers' secondary Class 1 rate above secondary earnings threshold | 12.80% |
13.80% |
| Employers' contracted-out rebate, final salary-related schemes | 3.70% |
3.70% |
| Employers' contracted-out rebate, money-purchase schemes | 1.40% |
1.40% |
| Class 2 weekly rate | £2.40 |
£2.50 |
| Class 2 small earnings exception | £5,075 per year |
£5,315 per year |
| Special Class 2 weekly rate for share fishermen | £3.05 |
£3.15 |
| Special Class 2 weekly rate for volunteer development workers | £4.85 |
£5.10 |
| Class 3 voluntary weekly rate | £12.05 |
£12.60 |
| Class 4 lower profits limit | £5,715 per year |
£7,225 per year |
| Class 4 upper profits limit | £43,875 per year |
£42,475 per year |
| Class 4 rate between lower profits limit and upper profits limit | 8% |
9% |
| Class 4 rate above upper profits limit | 1% |
2% |
Capital Gains Tax: Individuals and Trustees
| Annual exempt amount | 2010 - 2011 (£) |
2011 - 2012 (£) |
| Individuals | £10,100 |
£10,600 |
| Trust | £5,050 |
£5,300 |
| Rates | ||
| Individuals and personal representatives (1) | 28% |
28% |
| Companies | CT rates apply |
CT rates apply |
| Limit for gains subject to entrepreneurs' relief (2) | 5,000,000 |
10,000,000 |
| Entrepreneurs' rate | 10% |
10% |
| (1) - With effect from 23rd June 2010 the capital tax rate increased to 28% for higher rate taxpayers. The rate for standard rate taxpayers remains at 18%. |
| (2) - Disposals of whole or part of a business are subject instead to an entrepreneurs' rate of 10%. With effect from 23rd June 2010 the limit for gains subject to entrepreneurs' relief increased from £2,000,000 to £5,000,000. the limit increase to £10,000,000 from 6th April 2011. |
Inheritance Tax
2010 - 2011 |
2011 - 2012 |
|
| Nil rate band for individuals (1) | £325,000 |
£325,000 |
| Thereafter - lifetime girts (2) | 20% |
20% |
| - on death (3) | 40% |
40% |
| (1) - Unused nil rate band can be used by surviving spouse or civil partner |
| (2) - Increased to 40%, subject to tapering relief, on gifts made between 3 and 7 years pre death. Certain lifetime girts are exempt. special rules for business property. |
| (3) - From April 2012, a reduced rate of inheritance tax of 36% will be introduced where 10% or more of the net estate is left to charity. |
Corporation Tax
FY 2010 |
FY 2011 |
|
| Main rate | 28% |
26% |
| on Profits above | £1.5m |
£1.5m |
| Small companies rate | 21% |
20% |
| on Profits between | £0 - £300k |
£0 - £300k |
| Small/large marginal band | £300k - £1.5m |
£300k - £1.5m |
| Fraction (effective rate) | 7/400 (29.75%) |
3/200 (27.50%) |
Vat
| Standard rate (from 1st January 2011) | 20% |
| Registration level from 1.4.11 | £73,000 turnover per annum (future/past) |
| Deregistration level from 1.4.11 | £71,000 turnover per annum |
