|
|
| Income Tax Allowances & Rates | 2009/10 | 2008/09 |
 | £ | £ |
| Personal Allowance (<65) | 6.475 | 6,035 |
| Personal Allowance (65 to 74) | 9,490 | 9,030 |
| Personal Allowance (>74) | 9,640 | 9,180 |
| Married Couples' Allowance (65 to 74) * | N/A | 6,535 |
| Married Couples' Allowance (>74) | 6,965 | 6,625 |
| Maximum Income before abatement of age related reliefs | 22,900 | 21,800 |
| Blind Person's Allowance | 1,890 | 1,800 |
Pension Scheme Annual Allowance
Pension Scheme Lifetime Allowance | 245,000
1.75m | 235,000
1.65m |
| Rent-a-Room Relief | 4,250 | 4,250 |
| Inheritance Tax Threshold | 312,000 | 312,000 |
| * No relief available for Married Couples born before 6th April 1935 | | |
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| Capital Gains Tax - Rates & Allowances | 2009/10 | 2008/09 |
| | |
| Annual Exempt Amount | £10,100 | £9,600 |
| Capital Gains Tax Rate(s) | 18% | 18% |
| Entrepreneur's relief - first £1m of gains | 10% | 10% |
|
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| National Insurance Contributions - Class 1 (Employee) | 2009/10 | 2008/09 |
| £ | £ |
| Lower Earnings Limit | 95 weekly
411 monthly
4,940 yearly | 90 weekly
390 monthly
4,680 yearly |
| | |
| Primary Threshold | 110 weekly
476 monthly
5,720 yearly | 105 weekly
455 monthly
5,460 yearly |
| | |
Upper accruals point
| 770 weekly
3,336 monthly
40,040 yearly | N/A |
| | |
| Upper earnings limit | 844 weekly
3,657 monthly
43,888 yearly | 770 weekly
3,336 monthly
40,040 yearly |
| Rate on earnings up to primary threshold | 0% | 0% |
| | |
| Not contracted out rate on £110 - £844 weekly | 11% | 11% |
| Not contracted out rate - over £844 weekly | 1% | 1% |
| | |
| Contracted out rate on £110 - £844 weekly | 9.4% | 9.4% |
| Contracted out rate - over £844 weekly | 1% | 1% |
| | |
| Reduced rate* on £110 - £844 weekly | 4.85% | 4.85% |
| Reduced rate* - over £844 weekly | 1% | 1% |
| | |
| * The reduced rate applies to married woman or widows with a valid certificate of election. Men over 65and woman over 60 pay no primary contributions, though employers still pay the secondary contributions at the usual rate. People under 16 and their employers pay no contributions. | | |
| | |
| National Insurance Contributions - Class 1 (Employer) | 2009/10 | 2008/09 |
| £ | £ |
| Earnings Threshold | 110 weekly
476 monthly
5,720 yearly | 105 weekly
455 monthly
5,460 yearly |
| Not contracted out rate (above threshold) | 12.8% | 12.8% |
Contracted out rate:
Salary-related
Money-purchase |
9.1%
11.2% |
9.1%
11.2% |
| | |
| National Insurance: Other | 2009/10 | 2007/08 |
| £ | £ |
| Class 1A (Employers only) | 12.8% | 12.8% |
| Class 1B (Employers only) | 12.8% | 12.8% |
| Class 2 (Self-employed) | 2.40 per week | 2.30 per week |
| Class 3 (Voluntary) | 12.05 per week | 8.10 per week |
| Class 4 (£5,715 - £43,875) | 8% | 8% |
| Class 4 (Over £43,875) | 1% | 1% |
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| Tax Bands & Rates - Income Tax | 2009/10 | 2008/09 |
| £ | £ |
| Basic Rate Band (£) | 37,400 | 34,800 |
| Basic Rate | 20% | 22% |
| | |
| Higher Rate Band (£) | Over 37,400 | Over 34,800 |
| Higher Rate | 40% | 40% |
| | |
| Dividends / Bank Interest & other savings income | | |
| Lower Rate Band (£) | Up to 2,440 | Up to 2,230 |
| Lower Rate | 10% | 10% |
| | |
| Basic Rate Band (£) | 2,440 to 37,400 | 2,230 to 34,800 |
| Basic Rate | 10% / 20% | 10% / 20% |
| | |
| Higher Rate Band (£) | Over 37,400 | Over 34,800 |
| Higher Rate | 32.5% / 40 % | 32.5% / 40% |
| There is a 10% tax credit attached to dividends from 6/4/99 even though ACT is abolished from that date | | |
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| Tax Bands & Rates - Corporation Tax | 2009/10 | 2008/09 |
| £ | £ |
| Small Companies Rate (SCR) | 21% | 21% |
| On profits chargeable to CT over | 0 | 0 |
| On profits chargeable to CT up to | 300,000 | 300,000 |
| | |
| Upper Marginal Rate | 29.75% | 29.75% |
| On profits chargeable to CT over | 300,000 | 300,000 |
| On profits chargeable to CT up to | 1.5m | 1.5m |
| | |
| Standard Rate | 28% | 28% |
| On profits chargeable to CT over | 1.5m | 1.5m |
| | |
| * The 19% non-corporate distribution rate & starting rate was repealed from 1st April 2006. | | |
_____________________________________________________________
| Value Added Tax | 2009/10 | 2008/09 |
| £ | £ |
| Registration Threshold | 68,000 * | 67,000 |
| Standard Rate | 17.5% | 17.5% |
| Standard Rate (1st December 2008 - 31st December 2009) | 15% | 15% |
| Lower Rate | 5% | 5% |
| Zero Rate | 0% | 0% |
| * From 1st May 2009 | | |
VAT Flat Rate Scheme
The scheme is open to small businesses whose annual taxable turnover (not including VAT) does not exceed £150,000.
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Stamp taxes & Duties
Transfers of Land & Buildings (consideration paid)
The Stamp Duty Land Tax (SDLT) holiday, which exempts residential properties up to the value of £175,000 from SDLT, has been extended until 31 December 2009.
From 1 January 2010, the rates are as below:
| Rate | Residential in disadvantaged areas | Residential outside disadvantaged areas | Non – Residential |
| 0% | £0 - £150,000 | £0 - £125,000 | £0 - £150,000 |
| 1% | Over 150,000 - £250,000 | Over £125,000 - £250,000 | Over £150,000 - £250,000 |
| 3% | Over £250,000 - £500,000 | Over £250,000 - £500,000 | Over £250,000 - £500,000 |
| 4% | Over £500,000 | Over £500,000 | Over £500,000 |
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