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Rates and Allowances

Rates and allowances set for various types of tax are set out below.

Income tax, capital gains tax, and inheritance tax

£ per year (unless stated)	2009-10 (£)	2010-11 (£)

Income tax personal and age-related allowances
Personal allowance (age under 65)	6,475	6,475
Personal allowance (age 65-74)	9,490	9,490
Personal allowance (age 75 and over)	9,640	9,640

There is a £100,000 earnings limit after which no personal allowance is available. This applies to both employees and the Self Employed

Married couple's allowance* (age 75 and over)	6,965	6,965
Married couple's allowance* - minimum amount	2,670	2,670
Income limit for age-related allowances	22,900	22,900
Blind person’s allowance	1,890	1,890

Capital gains tax annual exempt amount
Individuals etc.	10,100	10,100
Most trustees	5,050	5,050

Individual inheritance tax allowance	325,000	325,000

Pension schemes allowances
Annual Allowance	245,000	255,000
Lifetime Allowance	1,750,000	1,800,000

* Married couple's allowance is given as a 10% tax credit.

Income tax: Taxable bands

2009-10	£ per year	2010-11	£ per year
Starting rate: 10%*	0-2,440	Starting rate: 10%*	0-2,440
Basic rate: 20%	0-37,400	Basic rate: 20%	0-37,400
Higher rate: 40%	Over 37,400	Higher rate: 40%	37,401-150,000
Additional Rate: 50%	N/A	Additional Rate: 50%	Over 150,000

* There is a 10p starting rate for savings income only. If an individual's non savings taxable income exceeds the starting rate limit, the 10p starting rate for savings will not be available for savings income.

Corporation tax on profits

£ per year (unless stated)	Y/E 31.03.2010 (%)	Y/E 31.03.2011 (%)
£0-£300,000*	21	21
£300,001 - £1,500,000	Marginal relief	Marginal relief
£1,500,001 or more	28	28

* Small Company Rate will reduce to 20% in April 2011, and the main rate will reduce to 27%.

Note; The upper (£1.5m) and the lower (£300k) limits are divided by the number of associated companies controlled by a person.

National insurance contributions

£ per week (unless stated)	2009-10	2010-11
Lower earnings limit, primary Class 1	£95	£97
Upper earnings limit, primary Class 1	£844	£844
Upper accruals point	£770	£770
Primary threshold	£110	£110
Secondary threshold	£110	£110
Employees’ primary Class 1 rate between primary threshold and upper earnings limit	11%	11%
Employees’ primary Class 1 rate above upper earnings limit	1%	1%
Employees’ contracted-out rebate - salary-related schemes	1.6%	1.6%
Employees’ contracted-out rebate - money-purchase schemes	1.6%	1.6%
Married women’s reduced rate between primary threshold and upper earnings limit	4.85%	4.85%
Married women’s rate above upper earnings limit	1%	1%
Employers’ secondary Class 1 rate above secondary threshold	12.8%	12.8%
Employers’ contracted-out rebate, salary-related schemes	3.7%	3.7%
Employers’ contracted-out rebate, money-purchase schemes	1.4%	1.4%
Class 2 rate	£2.40	£2.40
Class 2 small earnings exception (per year)	£5,075	£5,075
Special Class 2 rate for share fishermen	£3.05	£3.05
Special Class 2 rate for volunteer development workers	£4.75	£4.85
Class 3 rate (per week)	£12.05	£12.05
Class 4 lower profits limit (per year)	£5,715	£5,715
Class 4 upper profits limit (per year)	£43,875	£43,875
Class 4 rate between lower profits limit and upper profits limit	8%	8%
Class 4 rate above upper profits limit	1%	1%

Working and child tax credits rates

£ per year (unless stated)	2009-10	2010-11

Working Tax Credit
Basic element	£1,890	£1,920
Couple and lone parent element	£1,860	£1,890
30 hour element	£775	£790
Disabled worker element	£2,530	£2,570
Severe disability element	£1,075	£1,095
50+ Return to work payment (16-29 hours)	£1,300	£1,320
50+ Return to work payment (30+ hours)	£1,935	£1,965

Childcare element of the Working Tax Credit
Maximum eligible cost for one child	£175 per week	£175 per week
Maximum eligible cost for two or more children	£300 per week	£300 per week
Percentage of eligible costs covered	80%	80%

Child Tax Credit
Family element	£545	£545
Family element, baby addition	£545	£545
Child element	£2,235	£2,300
Disabled child element	£2,670	£2,715
Severely disabled child element	£1,075	£1,095

Income thresholds and withdrawal rates
First income threshold	£6,420	£6,420
First withdrawal rate	39%	39%
Second income threshold	£50,000	£50,000
Second withdrawal rate	6.67%	6.67%
First threshold for those entitled to Child Tax Credit only	£16,040	£16,190
Income disregard	£25,000	£25,000

Child benefit and guardian’s allowance rates from 6 April 2009

£ per week	2009-10 (£)	2010-11 (£)
Eldest/Only Child (Jan 09)	20.00	20.30
Other Children (Jan 09)	13.20	13.40
Guardian’s Allowance	14.10	14.30

Stamp Taxes and Duties
Transfers of land and buildings (consideration paid)
From 1 January 2010

Rate	Residential in disadvantaged areas & Non Residential	Residential outside disadvantaged areas
	Total value of consideration
Zero	0 - £150,000	0 - £125,000
1%	Over £150,000 - £250,000	Over £125,000 - £250,000*
3%	Over £250,000 - £500,000	Over £250,000 - £500,000
4%	Over £500,000	Over £500,000

* First time buyers can claim relief from SDLT on residential transactions up to £250,000 between 25 March 2010 and 25 March 2012

Bingo Duty
Bingo Duty reduces from 22% to 20% from 29 March 2010

Fuel Duty
The next increase in fuel duty will be implemented in three stages: 1 pence per litre on 1 April 2010, 1 pence per litre on 1 October 2010, and 0.76 pence per litre on 1 January 2011