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)	2010-11 (£)	2011-12 (£)

Income tax personal and age-related allowances
Personal allowance (age under 65)	6,475	7,475
Personal allowance (age 65-74)	9,490	9,940
Personal allowance (age 75 and over)	9,640	10,090

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	7,295
Married couple's allowance* - minimum amount	2,670	2,800
Income limit for age-related allowances	22,900	24,000
Blind person’s allowance	1,890	1,980

Capital gains tax annual exempt amount
Individuals etc.	10,100	10,600
Most trustees	5,050	5,050

Individual inheritance tax allowance	325,000	325,000

Pension schemes allowances
Annual Allowance	255,000	50,000
Lifetime Allowance	1,800,000	1,500,000

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

Income tax: Taxable bands

2010-11	£ per year	2011-12	£ per year
Starting rate: 10%*	0-2,440	Starting rate: 10%*	0-2,560
Basic rate: 20%	0-37,400	Basic rate: 20%	0-35,000
Higher rate: 40%	37,401-150,000	Higher rate: 40%	35,000-150,000
Additional Rate: 50%	Over 150,000	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 31.03.2011 (%)	Y/E 31.03.2012 (%)
£0-£300,000*	21	20
£300,001 - £1,500,000	Marginal relief	Marginal Relief
£1,500,001 or more	28	26

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)	2010-11	2011-12
Lower earnings limit, primary Class 1	£97	£102
Upper earnings limit, primary Class 1	£844	£817
Upper accruals point	£770	£770
Primary threshold	£110	£139
Secondary threshold	£110	£136
Employees’ primary Class 1 rate between primary threshold and upper earnings limit	11%	12%
Employees’ primary Class 1 rate above upper earnings limit	1%	2%
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%	5.85%
Married women’s rate above upper earnings limit	1%	2%
Employers’ secondary Class 1 rate above secondary threshold	12.8%	13.8%
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	£2.50
Class 2 small earnings exception (per year)	£5,075	£5,315
Special Class 2 rate for share fishermen	£3.05	£3.15
Special Class 2 rate for volunteer development workers	£4.85	£5.10
Class 3 rate (per week)	£12.05	£12.60
Class 4 lower profits limit (per year)	£5,715	£7,225
Class 4 upper profits limit (per year)	£43,875	£42,475
Class 4 rate between lower profits limit and upper profits limit	8%	9%
Class 4 rate above upper profits limit	1%	2%

Working and child tax credits rates

£ per year (unless stated)	2010-11	2011-12

Working Tax Credit
Basic element	£1,920	£1,920
Couple and lone parent element	£1,890	£1,950
30 hour element	£790	£790
Disabled worker element	£2,570	£2,650
Severe disability element	£1,095	£1,130
50+ Return to work payment (16-29 hours)	£1,320	£1,365
50+ Return to work payment (30+ hours)	£1,965	£2,030

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%	70%

Child Tax Credit
Family element	£545	£545
Family element, baby addition	£545	Withdrawn
Child element	£2,300	£2,555
Disabled child element	£2,715	£2,800
Severely disabled child element	£1,095	£1,130

Income thresholds and withdrawal rates
First income threshold	£6,420	£6,420
First withdrawal rate	39%	41%
Second income threshold	£50,000	£40,000
Second withdrawal rate	6.67%	41%
First threshold for those entitled to Child Tax Credit only	£16,190	£15,860
Income disregard	£25,000	£10,000

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

£ per week	2010-11 (£)	2011-12 (£)
Eldest/Only Child (Jan 09)	20.30	20.30
Other Children (Jan 09)	13.40	13.40
Guardian’s Allowance	14.30	14.75

Stamp Taxes and Duties
Transfers of land and buildings (consideration paid)
From 6 April 2011

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	£500,000 - £1,000,000
5%	N/A	Over £1,000,000

* 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
Fuel Duty was decreased by 1p on 23rd March 2011, but will be increased by 3.02p on 1st January 2012. The fuel duty escalator has been abolished and replaced with a fair fuel stabiliser.