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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