Personal Tax Rates and Allowances

Tax Rates Summary
2010/11
2009/10
Savings Rate of Income Tax*
10%
10%
Savings Rate Applies*
£0 - £2,440
£0 - £2,440
Basic Rate of Income Tax
20%
20%
Basic Rate Applies
£0 - £37,400
£0 - £37,400
Higher Rate of Income Tax
40%
40%
Higher Tax Rate Applies
£37,401-£150,000
Above £37,400
Additional Rate of Income Tax
50%
N/A
Additional Rate Applies
Over £150,000
N/A

*If an individual's taxable non-savings income is above this limit then the 10% savings rate will not be applicable.


Personal Tax Allowances
2010/11
2009/10
£
£
Personal Allowance*
(aged 64 and under)
6,475
6,475
  (aged 65-74) **
9,490
9,490

(aged 75 and over) **
9,640
9,640
Married Couples Allowance ***
(If born before 6 April 1935)**
6,965
6,965
  (aged 75 and over)*
6,965
6,965
Blind Persons  
1,890
1,890
Age Allowance Lower Income Limited
22,900
22,900

*From 2010/11 if an individual's gross income is above £100,000 the basic personal allowance will be reduced by £1 for every £2 above the income limit up to a maximum of the allowance.

** Abatement of Relief for age allowance by £1 for every £2 over income limit.

*** This allowance attracts relief at a rate of 10%.

 

Capital Gains Tax
2010/11
2009/10
 

£

£
- Annual Exemption (Individuals)
10,100
10,100

- Annual Exemption (Trustees)

5,050

5,050

 

Capital Gains Tax Rates
Non qualifying assets  Up to 22 June 2010
18%

Non qualifying assets

 After 22 June 2010*

- Up to basic rate income tax band

- Above basic rate income tax band

 

18%

28%
Qualifying assets (Entrepreneurs Relief)
10%

* To determine whether the gain is taxable at 18% or 28% an individual's total income is calculated. That part which falls in an individual's basic rate band is subject to 18%, the balance is at 28%.


Inheritance Tax Threshold

2010/11
2009/10
- Nil Rate Band £325,000
£325,000

 

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