Income Tax Rates
| 2009/10 | 2008/09 | |||||||||||
| Band £ |
Rate % |
Band £ |
Rate % |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 - 2,400 | 10 1 | 0 - 2,320 | 10 1 | |||||||||
| 2,441 - 37,000 | 20 2 | 2,321 - 34,800 | 20 2 | |||||||||
| Over 37,400 | 40 3 | Over 34,800 | 40 3 | |||||||||
1 Only applicable to dividends and savings income.
2 Exept dividends (10%)
3 Exept dividends (32.5%)
Other income taxed first, then savings income and finally dividends.
Income Tax Reliefs
| 2009/10 £ |
2008/09 £ |
||
| Personal allowance | - under 65 - 65 - 74* - 75 and over* |
6,475 9,490 9,640 |
6,035 9,030 9,180 |
|---|---|---|---|
| Married couples allowance (relief at 10%) |
- aged less that 75 and born before 6.4.35* - 75 and over* - min. amount |
n/a 6,965 2,670 |
6,535 6,625 2,540 |
| * Age allowance income limit (Reduce age allowance by £1 for every £2 of excess income over £22,900.) |
22,900 | 21,800 | |
| Blind person's allowance | 1,890 | 1,800 | |
Tax Credits
| 2009/10 £ |
2008/09 £ |
|
| Working Tax Credit Basic element - max. Childcare element 80% of eligible costs upto £175 per week (£300 if two or more children) |
1,890 |
1,800 |
|---|---|---|
| Child Tax Credit (CTC) Child element per child - max. Family element Baby addition |
2,235 545 545 |
2,085 545 545 |
| Reductions in maximum rates 39% of income above £6,420* p.a. |
* If only CTC is claimed, the threshold is £16,040 (£15,575) p.a. The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.
Car, Van and Fuel Benefits
| CO2 emissions (gm/km) (round down to nearest 5gm/km) |
% of car's list price taxed |
| up to 135 |
15 |
| 140 | 16 |
| 145 | 17 |
| 150 | 18 |
| 155 | 19 |
| 160 | 20 |
| 165 | 21 |
| 170 | 22 |
| 175 | 23 |
| 180 | 24 |
| 185 | 25 |
| 190 | 26 |
| 195 | 27 |
| 200 | 28 |
| 205 | 29 |
| 210 | 30 |
| 215 | 31 |
| 220 | 32 |
| 225 | 33 |
| 230 | 34 |
| 235 and above | 35 |
2009/10 Company Cars
- For diesel cars add a 3% supplement but maximum still 35%. Euro IV diesel cars registered befor 1 January 2006 do not suffer the 3% supplement.
- Discounts apply to certain environmentally friendly cars.
- A 10% rate applies to non-electric cars with emissions of no more than 120gm/km. Environmentally friendly discounts do not apply to these cars but the diesel supplement does.
- For cars registered before 1 January 1998 the charge is based on engine size.
- The list price includes accessories and is subject to an upper limit of £80,000.
- The list price is reduced for capital contributions made by the employee up to £5,000.
| Car fuel benefit 2009/10 and 2008/09 |
| £16,900 x 'appropriate percentage'* * percentage used to calculate the taxable benefit of the car for which the fuel is provided. No change to this calculation was announced on Budget Day. |
| Van Benefit per vehicle |
| 2009/10 and 2008/09 |
| Van benefit £3,000 Fuel benefit £500 |
| The charges will not apply if a 'restricted private use condition' is met throughout the year |
Mileage Allowance Payments
| 2009/10 and 2008/9 | |
| Cars and Vans Up to 10,000 miles Over 10,000 miles |
Rate per Mile 40p 25p |
| Bicycles | 20p |
| Motorcycles | 24p |
These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.
Individual Savings Accounts (ISAs)
| 2009/10 | £ |
| Overall annual investment limit Comprising - Cash up to: - Balance in stocks and shares |
7,200 (10,200*) 3,600 (5,100*) max. 7,200 (10,200*) max. |
* From 6 October 2009 for those aged 50 and over.
Capital Gains Tax
| 2009/10 £ |
2008/09 £ |
|
| Individuals Exemption Balance of gains |
10,100 18% |
9,600 18% |
| Trusts Exemption Balance of gains |
5,050 18% |
4,800 18% |
Entrepreneurs' Relief
For gains arising on or after 6 April 2008, the first £1m of qualifying gains are charged at an effective rate of 10%. Gains in excess of £1m are charged at 18%.
Inheritance Tax
| Death Rate % |
Lifetime Rate % |
Chargable transfers | |
| 2009/10 £'000 |
2008/09 £'000 |
||
| Nil 40 |
Nil 20 |
0 - 325* Over 325* |
0 - 312* Over 312* |
* Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
| Reliefs | |||
| Annual exemption Small gifts |
£3,000 £250 |
Marriage - parent - grandparent - bride/groom - other |
£5,000 £2,500 £2,500 £1,000 |
| Reduced charge on gifts within seven years of death | |||||
| Years before death % of death charge |
0 - 3 100 |
3 - 4 80 |
4 - 5 60 |
5 - 6 40 |
6 - 7 20 |
Stamp Duty and Stamp Duty Land Tax
| Lands and buildings (on full consideration paid) | |||
| Rate |
Residential property* | Non-residential | |
| Disadvantaged areas £ |
Other £ |
£ |
|
| Nil 1% 3% 4% |
0 - 150,000* 150,001* - 250,000 250,001 - 500,000 over 500,000 |
0 - 125,000* 125,001* - 250,000 250,001 - 500,000 Over 500,000 |
0 - 150,000 150,001 - 250,000 250,001 - 500,000 over 500,000 |
* £175,000 for transactions with an effective date on or after 3 September 2008 and before 1 january 2010.
Shares and securities - rate 0.5%
For further informtation please Click Here to visit the HM Revenue & Customs Website.
