|
Income Tax Rates
|
Rate on taxable income
|
Band, £(GBP)
|
Rate,%
|
| Starting savings rate |
0 - £2,440 |
10* |
|
Basic rate
|
Up to £37,400
|
20
|
|
Higher rate
|
Over £37,400 - £150,000
|
40
|
| Additional rate |
over £150,000 |
50 |
|
* Starting savings rate is available for savings income only. In case non savings taxable income increases starting rate limit then the starting savings rate is not available.
|
|
|
Allowances and Reliefs
|
|
£ (GBP)
|
|
Personal allowance (under 65 age)
|
6,475
|
|
Income limit for personal allowance for under 65 age
|
100,000 |
|
Personal allowance aged 65-74
|
9,490
|
|
Personal allowance aged 75 and over
|
9,640
|
|
Married couple's allowance
|
|
aged 75 and over
|
6,965
|
|
Income Limit for age related allowance
|
|
aged 65-75
|
22,900
|
|
aged 75 and over
|
22,900
|
* Personal allowance is to increase to £7,475 from April 2011.
|
|
Corporation Tax
|
Taxable profit £ (GBP)s
|
|
1 - 300,000
|
21%
|
|
300,001 - 1,500,000
|
Marginal rate applies with the relief fraction of 7/400
|
|
Over 1,500,001
|
28%
|
| Special rate for unit trusts and open ended investment companies |
20% |
* From 1st April 2011, the corporation tax rate will be reduced from 28% to 27%. In the next year on 1st April 2012, the rate further reduces to 26%, on April 2013 it becomes 25% and finally on 1 April 2014 it goes to 24%. On the other hand for small companies the corporation tax rate becomes 20% from 1st April 2011.
|
|
Capital Allowances
|
|
|
|
Annual investment allowance on new purchase of plant and machinery
|
£100,000
|
|
First year allowance for business expenditure on new zero emission vehicles
|
100%
|
|
|
|
|
Writing-down allowances
|
%
|
|
integral features
|
10
|
|
Long Life plant & machinery
|
10
|
|
Other plant and machinery
|
20
|
|
Industrial/agricultural buildings
|
1
|
* From April 2012, for the main pool of plant and machinery, the writing down allowance rate will be reduced from 20% to 18% and for the special pool the rate changes from 10% to 8%.
Annual Investment allowance reduces from £100,000 to £25,000 from 1st April 2012. And for new zero emission goods vehicles, the 100% first year allowance is introduced which is applicable for the five year from April 2010.
|
|
Capital Gains Tax
|
Rates (Standard)
|
18%
|
|
Rate (UK trusts)
|
18%
|
|
Entrepreneurs’ relief – effective rate
|
10%
|
|
Individual annual exemption
|
£10,100
|
|
Trusts annual exemption
|
£5,050
|
|
Chattels Exemption:
|
|
|
Proceeds per item or set
|
£6,000
|
|
Marginal relief
|
5/3 excess over 6,000
|
* For low and middle income earners, the capital gains tax is 18% but for the higher income tax rates, the CGT will become 28% in the future. However, the annual allowance of £10,100 is also present for all the capital gains.
|
|
Car Benefits
|
Petrol and diesel cars with approved CO2 emissions
|
|
CO2 emissions (gms/km)
|
Petrol %
|
Diesel %
|
| 1 to 75 |
5 |
8 |
|
76 to 120
|
10
|
13
|
|
121 to 134
|
15
|
18
|
|
136 to 139
|
16
|
19
|
|
140 to 144
|
17
|
20
|
| 145 to 149 |
18 |
21 |
|
Tax charge increases by 1% per each additional 5 gms/km until:
|
|
210 to 214
|
31
|
34
|
|
215 to 219
|
32
|
35
|
|
220 to 224
|
33
|
35
|
|
225 to 229
|
34
|
35
|
|
230 and over
|
35
|
35
|
|
|
|
|
|
Car Fuel benefits (not electric cars)
|
|
|
|
Same % used to calculated the car benefits
|
£(GBP) 18,000
|
|
|
|
|
|
Approved mileage rates (employee’s own vehicle)
|
|
|
|
Rate per mile
|
|
|
|
Car or van: First 10,000 miles
|
40p
|
|
Car or van: over 10,000 miles
|
25p
|
|
Motorcycle
|
24p
|
|
Bicycles
|
20p
|
|
Additional passenger payment
|
5p
|
|
|
Enterprise investment scheme (EIS)
|
Qualifying investments of up to
|
£ 500,000
|
|
Income tax relief
|
20%
|
|
Capital gains deferral relief is also available
|
|
|
Venture capital trusts (VCTs)
|
Investment qualifying for income tax relief
|
£ 200,000
|
|
Rate of income tax relief for investors
|
30%
|
|
|
Individual Savings Accounts (ISAs)
|
Max annual contributions – up to £10,200 in total, but invest no more than £5,100 in cash
|
|
|
*for 50 years age and over these rules apply from on or after 06 october 2009 and for everyone else from April 2010
|
|
|
VAT
|
Standard Rate (from 4 January 2011)
|
20%
|
|
Annual Turnover Limits
|
|
|
Registration - last 12 months or over next 30 days
|
£ 70,000
|
|
Deregistration - under next 12 months
|
£ 68,000
|
* From 4 January 2011, the main VAT rised from 17.5% to 20%.
|
|
National Insurance Contributions
|
Weekly earnings £(GBP)
|
Not contracted out
|
Contracted out
|
|
|
Class I (employment) Employee’s rate
|
|
97 to 110
|
Nil
|
Nil
|
|
|
1110.01 to 770
|
11%
|
9.4%
|
|
| 770.01 to 844 |
11% |
11% |
|
|
Earnings over 844
|
1%
|
1%
|
|
|
Employer’s rates
|
|
Contracted out salary related schemes
|
Contracted out money purchase schemes
|
|
97 to 110
|
Nil
|
Nil
|
Nil
|
|
110.01 to 770
|
12.8%
|
9.1%
|
11.4%
|
|
Earnings over 770
|
12.8%
|
12.8%
|
12.8%
|
|
|
National Minimum Wage
|
|
From October 2010 changes from
|
|
Workers
|
per hour
|
|
21 years +
|
£ (GBP) 5.80 to 5.93
|
|
18-20 years
|
£ (GBP) 4.83. to 4.92
|
|
16-17 years
|
£ (GBP) 3.57 to 3.64
|
|
|
Personal Pensions
|
Maximum annual contribution into registered pension from employee and employer both together is capped at £ 225,000/ Maximum amount on which individual can claim relief in any tax year is £3,600.
In case total pension input increases the annual allowance of £255,000 then a tax charge at 40% on excess will be applicable. In the year of full pension benefit, this limit will not apply.
|
|
Maximum age for tax relief
|
74
|
|
Minimum age for taking benefits
|
55
|
|
|
Lifetime allowance charge:
|
|
|
|
On Lump sum paid
|
55%
|
|
|
On monies retained
|
25%
|
|
|
If cumulative benefits exceeding
|
£1,800,000*
|
|
|
Maximum tax free lump sum
|
25%*
|
|
|
*Subject to excess amount in the transitional protection
|
|
|
|
|
Stamp Duty
|
Residential
|
|
| NB: From 25th March 2010 all qualifying first-time buyers of residential property with value of upto £ 250.000 are exempt from the stamp duty! |
|
£125,000 or less
|
Nil*
|
|
£125,001-250,000
|
1%**
|
|
£250,001-500,000
|
3%
|
|
Over £500,000
|
4%
|
| Over £1,000,000 from 6 April 2011 |
5% |
|
Non-residential
|
|
|
£150,000 or less - annual rent less than 1,000
|
Nil
|
| £150,000 or less - annual rent 1,000 or more |
1% |
|
£150,001 – 250,000
|
1%
|
|
£250,001-500,000
|
3%
|
|
Over £500,000
|
4%
|
|
*£150,000 for property in disavantaged area
**Nil until £250,000 for first time residential buyers.
|
|
