2009-10

2010-11

(£)

(£)

Personal allowance (1)

6,475

6,475

Income limit for personal allowance (1)

-

100,000

Personal allowance for people aged 65-74 (2)

9,490

9,490

Personal allowance for people aged 75 and over (2)

9,640

9,640

Married couple's allowance - aged 75 and over (2) (3)

6,965

6,965

Income limit for age-related allowances

22,900

22,900

Minimum amount of married couple's allowance

2,670

2,670

Blind person's allowance

1,890

1,890

(1) - From 6 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 amount of Married Couple's allowance.

(3) - Tax relief for the Married Couple's allowance is given at the rate of 10%.

2009-10

2010-11

(£)

(£)

Starting rate for savings 10% (1)

0 - 2,440

0 - 2,440

Basic rate 20% (2)

2,441 - 37,400

2,441 - 37,400

Higher rate 40% (3)

over 37,400

37,400 - 150,000

Additional rate 50% (4)

n/a

over 150,000

(1) If your non-savings income is above the starting rate limit of £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 £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).

 2009-10

 2010-11

Lower weekly earnings limit, primary Class 1

 £95

 £97

Upper weekly earnings limit, primary Class 1

 £844

 £844

Upper weekly accruals point

 £770

 £770

Primary weekly earnings threshold

£110

£110

Secondary weekly earnings threshold

 £110

 £110

Employees' primary Class 1 rate between primary earnings threshold and upper earnings limit

11%

11%

Employees' primary Class 1 rate above upper earnings limit

1%

1%

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%

4.85%

Married women's rate above upper earnings limit

1%

1%

Employers' secondary Class 1 rate above secondary earnings threshold

12.80%

12.80%

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

£2.40

Class 2 small earnings exception

£5,075 per year

£5,075 per year

Special Class 2 weekly rate for share fishermen

£3.05

£3.05

Special Class 2 weekly rate for volunteer development workers

£4.75

£4.75

Class 3 voluntary weekly rate

£12.05

£12.05

Class 4 lower profits limit

£5,715 per year

£5,715 per year

Class 4 upper profits limit

£43,875 per year

£43,875 per year

Class 4 rate between lower profits limit and upper profits limit

8%

8%

Class 4 rate above upper profits limit

1%

1%

Annual exempt amount

2009-10

2010-11

(£)

(£)

Individuals

10,100

10,100

Trusts

5,050

5,050

Rates

Individuals and personal representatives

18%*

28%*

Companies

CT rates apply

CT rates apply

Limit for gains subject to entrepreneurs' relief (1)

1,000,000

5,000,000

1. With effect from 23 June 2010 the capital gains 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 23 June 2010 the limit for gains subject to entrepreneurs' relief increased from 2,000,000 to 5,000,000

2009-10

2010-11

(£)

(£)

Nil rate band for individuals (1)

£325,000

£325,000

Thereafter - lifetime gifts (2)

20%

20%

                    - on death

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

Year to 31.3.2010

Year to 31.3.2011

Main rate

28%

28%

on Profits above

£1.5m

£1.5m

Small companies rate

21%

21%

on Profits between

£0 - £300k

£0 - £300k

Small/large marginal band

£300k - £1.5m

£300k - £1.5m

Fraction (effective rate)

7/400 (29.75%)

7/400 (29.75%)

Standard rate (1) 

17.5% 

Registration level from 1.4.10

£70,000 turnover per annum

Deregistration level from 1.4.10

£68,000 turnover per annum