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TAX FACTS 2009/2010
Top of Form
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
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
15%
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
