TAX FACTS 2009/2010

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%