Tax Rates and Allowances
| 2008-09 (£) | 2009-10 (£) | Increase (£) | |
|---|---|---|---|
| INCOME TAX ALLOWANCES: | |||
| Personal allowance | 6,035 | 6,475 | +440 |
| CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT: | |||
| Individuals etc: | 9,600 | 10,100 | - |
| Inheritance tax threshold | 312,000 | 325,000 | +23,000 |
| PENSIONS SCHEMES: | |||
| Annual allowance: | £235,000 | £245,000 | +10,000 |
| Lifetime allowance: | 1,650,000 | 1,750,000 | +100,000 |
Taxable Bands
| Taxable bands 2008-09 (£) | Taxable bands 2009-10 (£) | ||
|---|---|---|---|
| *Starting rate 10% | 0 - 2,320 | *Starting rate 10% | 0 - 2,440 |
| Basic rate 20% | 0 - 34,800 | Basic rate 20% | 0 - 37,400 |
| Higher rate 40% | Over 34,800 | Higher rate 40% | Over 37,400 |
* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.
The rates available for dividends for the 2008-09 and 2009-10 tax years are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate.
Corporation Tax Rates
| Band | Corporation tax profits 2008-09 (£) | Corporation tax profits 2009-10 (£) |
|---|---|---|
| 0 - 300,000 | 21% | 21% |
| 300,001 - 1,500,000 | Marginal relief | Marginal relief |
| 1,500,001 or more | 28% | 28% |
* The Small companies rate rose to 21% in April 2008, and was planned to rise to 22% in April 2009, but this was deferred until 2010.
REV2: National Insurance Rates
| 2008-09 | 2009-10 | |
|---|---|---|
| Primary threshold | £105 per week | £110 per week |
| Secondary threshold | £105 per week | £110 per week |
| Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit | 11% of £105.01 to £770 per week 1% above £770 per week | 11% of £110.01 to £844 per week 1% above £844 per week |
| Employers’ secondary Class 1 rate | 12.8% on earnings above £105 per week | 12.8% on earnings above £110 per week |
| Class 4 rate | 8% of £5,435 to £40,040 per year 1% above £40,040 per year | 8% of £5,715 to £43,875 per year 1% above £43,875 per year |
| Class 4 lower profits limit | £5,435 per year | £5,715 |
| Class 4 upper profits limit | £40,040 per year | £43,875 |
For further rates and allowances and historic tables see HMRC.