|
Income Tax Rates
|
Rate on taxable income
|
Band, £(GBP)
|
Rate,%
|
|
Basic rate
|
Up to 37,400
|
20*
|
|
High rate
|
Over 37,400
|
40
|
|
* Starting Savings income up to £ 2,440 taxable at 10%
|
|
|
Allowances and Reliefs
|
|
£ (GBP)
|
|
Personal allowance (under 65 age)
|
6,475
|
|
Age allowance
|
|
Personal
|
|
aged 65-74
|
9,490
|
|
aged 75 and over
|
9,640
|
|
Married couple's allowance
|
|
aged 65-74
|
6,535*
|
|
aged 75 and over
|
6,965*
|
|
Income Limit
|
|
aged 65-75
|
22,900
|
|
aged 75 and over
|
22,900
|
|
*Relief restricted to 10%. One spouse must be 70 or more.
|
|
|
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%
|
|
|
Capital Allowances
|
|
|
|
Annual investment allowance on new purchase of plant and machinery
|
£50,000
|
|
New purchase plant & machinery over £ 50,000
|
40%
|
|
Investment in green technologies—revision expected in 2009 prior to summer
|
100%
|
|
|
|
|
Writing-down allowances
|
%
|
|
Equipment
|
10 p.a.
|
|
Long Life plant & machinery
|
10 p.a.
|
|
Plant and machinery for overseas leasing
|
—
|
|
Other plant and machinery
|
20 p.a.
|
|
Industrial/agricultural buildings, hotels & sports pavilions
|
2 p.a.
|
|
|
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
|
Capital gains taper relief (abolished for disposals after 5 April 2008. Entrepreneurs' relief is available on disposal or part or all of the business, or where profit made on disposal of assets following the business cessation or gains by individuals who were running the business. First £1 million of gains would be charged to CGT at effective rate of 10%. Gains in excess will be charged at normal rate of 18%. An individual can claim for relief on more times than one up to the life time and the value of such relief should be equal to 1 million in total.
|
|
Car Benefits
|
Petrol and diesel cars with approved CO2 emissions registered after 31 December 1997
|
|
CO2 emissions (gms/km)
|
Petrol %
|
Diesel %
|
|
120 or lower
|
10
|
13
|
|
121 to 139
|
15
|
18
|
|
140 to 144
|
16
|
19
|
|
145 to149
|
17
|
20
|
|
Tax charge increases by 1% per each additional 5 gms/km until:
|
|
215
|
31
|
34
|
|
220
|
32
|
35
|
|
225
|
33
|
35
|
|
230
|
34
|
35
|
|
235 or over
|
35
|
35
|
|
|
|
|
|
Car Fuel benefits (not electric cars)
|
|
|
|
Same % used to calculated the car benefits
|
£(GBP) 16.900
|
|
|
|
|
|
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 tax of EIS shares after three years
|
Nil
|
|
Capital gains deferral by EIS investment
|
Unlimited
|
|
|
Venture capital trusts (VCTs)
|
Investment qualifying for income tax relief
|
£ 200.000
|
|
Income tax relief provided share held for at least five years or three years in case share are issued earlier than 06 April 2006
|
30%
|
|
Tax on dividends
|
Nil
|
|
Capital gain tax on VCT shares
|
Nil
|
|
Capital gains tax relief on losses
|
Nil
|
|
Capital gains deferral by VCT investment
|
Nil
|
|
|
Individual Savings Accounts (ISAs)
|
Maximum annual contributions – up to £ 7,200 in total, but invest no more than £ 3.600 in cash
|
If up to 50
|
|
Max annual contributions –up to £10,200 in total, but invest no more than £5,100
|
For 50 and over
|
|
*50 and over applies on or after 06 April 2009
|
|
|
|
VAT
|
Standard Rate (till 31st December 2009)
Standard Rate (from 1st January 2010)
|
15%
17,5%
|
|
Annual Turnover Limits (from 1 May 2009 to 31st December 2009)
|
|
|
Registration
|
£ 68,000
|
|
Deregistration
|
£ 66,000
|
|
|
National Insurance Contributions
|
Weekly earnings £(GBP)
|
Not contracted out
|
Contracted out
|
|
|
Class I (employment) Employee’s rate
|
|
First 90
|
Nil
|
Nil
|
|
|
91 to 105
|
Nil
|
Nil
|
|
|
106 to 770
|
11%
|
9.4%
|
|
|
Earnings over 770
|
1%
|
1%
|
|
|
Employer’s rates
|
|
Contracted out salary related schemes
|
Contracted out money purchase schemes
|
|
First 90
|
Nil
|
Nil
|
Nil
|
|
91 to 105
|
Nil
|
Nil
|
Nil
|
|
106 to 770
|
12.8%
|
9.1%
|
12.4%
|
|
Earnings over 770
|
12.8%
|
12.8%
|
12.8%
|
|
|
National Minimum Wage
|
|
From October 2008
|
|
Workers
|
per hour
|
|
22 years +
|
£ (GBP)5.73
|
|
18-21 years
|
£ (GBP)4.77
|
|
16-17 years
|
£ (GBP)3.53
|
|
|
Personal Pensions
|
No limit is given to the amount that can be contributed to registered pension scheme. Maximum amount on which individual can claim relief in any tax year is greater of his UK earnings or £3,600.
In case total pension input increases the annual allowance of £245,000 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
|
50
|
|
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
|
Intellectual property
|
Nil
|
|
Goodwill
|
Nil
|
|
Chattels
|
Nil
|
|
Shares and securities
|
0.5%
|
|
Land, and lease premiums £ (GBP)3.40
|
|
Residential
|
|
|
£175,000 or less
|
Nil
|
|
£175,001-250,000
|
1%
|
|
£250,001-500,000
|
3%
|
|
Over £500,000
|
4%
|
|
Non-residential or mixed
|
|
|
£175,000 or less
|
Nil
|
|
£175,001 – 250,000
|
1%
|
|
£250,001-500,000
|
3%
|
|
Over £500,000
|
4%
|
| |
|
|
