Tax Rates 2010/11

 

Tax Rates Capital Allowances
Income Tax Relief Value Added Tax
Tax Credits Capital Gains Tax Allowances
Pension Premiums Inheritance Tax
Car, Van and Fuel Benefits Stamp Duty & Stamp Duty Land Tax
Mileage Allowances National Insurance
Individual Savings Accounts (ISAs) Main Social Security Benefits
Corporation Tax Self Assesments Key Dates 2010/11

Tax Rates

2010/11

2009/10
Band £ Rate % Band £ Rate %
0 - 2,440 10* 0 - 2,440 10*
2,441 - 37,400 20** 2,441 - 37,400 20**
37,401 - 150,000 40*** Over 37,400 40***
Over 150,000 50****    

*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,440.
** Except dividends (10%).
*** Except dividends (32.5%).
**** Except dividends (42.5%).
Other income taxed first, then savings income and finally dividends.

 

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Income Tax Relief

   

2010/11 and 2009/10
£
Personal allowance - under 65 6,475
  - 65 - 74* 9,490
  - 75 and over* 9,640
(For 2010/11 reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.)
Married couple's allowance (relief at 10%) - 75 and over* 6,965
  - min. amount 2,670
* Age allowance income limit
(Reduce age allowance by £1 for every £2 of excess income over £22,900.)		 22,900
Blind person’s allowance   1,890

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Capital Allowances

Plant and machinery - Annual Investment Allowance (AIA)

The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long life assets but not cars, of up to £50,000 p.a. The limit is increased to £100,000 for expenditure incurred on or after 6 April 2010 (1 April 2010 for companies). Special rules apply for accounting periods straddling these dates.

Any costs over the AIA fall into the normal capital allowance pools at either 10% or 20%. The AIA may need to be shared between certain businesses under common ownership.

Other plant and machinery allowances

The annual rate of allowance is 20%. A 10% rate applies to expenditure incurred on integral features and on long life assets.

A temporary 40% first year allowance may be due for certain expenditure exceeding the AIA incurred in the 12 month period beginning on 6 April 2009 (1 April 2009 for companies). A 100% first year allowance may still be available on certain energy efficient plant and cars.

Cars

For expenditure incurred on cars on or after 6 April 2009 (1 April 2009 for companies), costs are generally allocated to one of the two plant and machinery pools. Cars with CO2 emissions not exceeding 160gm/km receive a 20% allowance p.a. Cars with CO2 emissions over 160gm/km receive a 10% allowance p.a.

Industrial and agricultural buildings and hotels

The annual rate of allowance is 1% (2%) from 6 April 2010 (1 April 2010 for companies). Special rules apply for accounting periods straddling these dates.

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Value Added Tax

Standard rate 17.5% (20% from 4 January 2011)
Reduced rate 5%
Annual Registration Limit - from 1.4.10 (1.5.09 - 31.3.10 £68,000) £70,000
Annual Deregistration Limit - from 1.4.10 (1.5.09 - 31.3.10 £66,000) £68,000

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Tax Credits

 

2010/11
£

2009/10
£
Working Tax Credit    
Basic element - max. 1,920 1,890
Childcare element
80% of eligible costs up to £175 per week (£300 if two or more children).
Child Tax Credit (CTC)    
Child element per child - max. 2,300 2,235
Family element 545 545
Baby addition 545 545

Reductions in maximum rates

39% of income above £6,420* p.a.

*If only CTC is claimed, the threshold is £16,190 (£16,040) 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.

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Capital Gains Tax Allowances

2010/11

6.4.10 - 22.6.10

23.6.10 - 5.4.11
Individuals £ £
Exemption 10,100 10,100
Standard rate 18% 18%
Higher rate* - 28%
Trusts    
Exemption 5,050 5,050
Rate 18% 28%
*For higher and additional rate taxpayers
Entrepreneurs’ Relief
The first £5m (£2m for disposals on/after 6 April 2010 and before 23 June 2010) of qualifying gains are charged at an effective rate of 10%. Gains in excess of the limit are charged at the rates detailed above.

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Pension Premiums

2010/11 and 2009/10

  • Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.
  • Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’. Tax relief for large contributions may be spread over several years.
  • Any contributions in excess of £255,000 (£245,000), whether personal or by the employer, may be subject to income tax on the individual.
  • An additional income tax charge may apply on certain non-regular contributions.

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Inheritance Tax

Death
rate
% 		Lifetime
rate
% 		Chargeable transfers
2010/11 and 2009/10
£’000
Nil Nil 0 - 325*
40 20 Over 325*

*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.

Reliefs
Annual exemption £3,000 Marriage - parent £5,000
Small gifts £250   - grandparent £2,500
      - bride/groom £2,500
      - other £1,000
Reduced charge on gifts within seven years of death
Years before death 0-3 3-4 4-5 5-6 6-7
% of death charge 100 80 60 40 20

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Car, Van and Fuel Benefits

Company cars 2010/11
CO2 emissions (gm/km) (round down to nearest 5gm/km) % of car’s list price taxed
up to 130 15
135 16
140 17
145 18
150 19
155 20
160 21
165 22
170 23
175 24
180 25
185 26
190 27
195 28
200 29
205 30
210 31
215 32
220 33
225 34
230 and above 35

Company cars

  • For diesel cars add a 3% supplement but maximum still 35%. Euro IV diesel cars registered before 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 2010/11

£18,000 x ‘appropriate percentage’*
*Percentage used to calculate the taxable benefit of the car for which the fuel is provided.

  • The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Van benefit per vehicle 2010/11

Van benefit £3,000
Fuel benefit £550

  • The charges do not apply to certain environmentally friendly vans or if a 'restricted private use condition' is met throughout the year.

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Stamp Duty & Stamp Duty Land Tax

Land and buildings (on full consideration paid)
Rate Residential property* Non-residential
Nil
1%*
3%
4%		 Disadvantaged areas Other £
£ £
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

* Relief available for first time buyers for transactions with an effective date on or after 25 March 2010 and before 25 March 2012.

Shares and securities - rate 0.5%.

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Mileage Allowances

Cars and vans

2010/11 and 2009/10
Rate per mile
Up to 10,000 miles 40p
Over 10,000 miles 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.

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National Insurance

Class 1 (employed)
contracted in		 2010/11 Rates
Weekly earnings Employer Employee
Up to £110 Nil* Nil*
£110.01 - £844 12.8%** 11%**
Over £844 12.8%** £80.74 +1%***
* Entitlement to contribution-based benefits retained for earnings between £97.01 and £110 per week.
** On earnings above £110.
*** On earnings above £844.
Class 1A (employers) 12.8% on employee taxable benefits
Class 1B (employers) 12.8% on PAYE Settlement Agreements
Class 2 (self-employed) flat rate per week £2.40
small earnings exception p.a. £5.075 p.a.
Class 3 (voluntary) flat rate per week £12.05
Class 4 (self-employed) 8% on profits between £5,715 and £43,875 plus 1% on profits over £43,875

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Individual Savings Accounts (ISAs)

2010/11

£
Overall annual investment limit   10,200
Comprising - cash up to 5,100 max.
  - balance in stocks and shares 10,200 max.

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Main Social Security Benefits

Weekly benefit

  

2010/11

2009/10
Basic retirement pension - single person £97.65 £95.25
  - married couple £156.15 £152.30
Statutory pay rates - average weekly earnings £97 (£95) or over
Statutory Sick Pay £79.15 £79.15
Statutory Maternity Pay    
- First six weeks 90% of weekly earnings
- Next 33 weeks £124.88* £123.06*
Statutory Paternity Pay - two weeks £124.88* £123.06*
Statutory Adoption Pay - 39 weeks £124.88* £123.06*
* Or 90% of weekly earnings if lower.

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Corporation Tax

 

Years to 31.3.11 and 31.3.10
  Profits band
£		 Rate
%
Small companies rate 0 - 300,000 21*
Marginal (small companies) rate 300,001 - 1,500,000 29.75*
Full rate Over 1,500,000 28*
Small companies fraction   7/400*

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

*Different rates apply for ring-fenced (broadly oil industry) profit.

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Self Assesments Key Dates 2010/11

31 July 2010 - Second payment on account for 2009/10.

5 October 2010 - Deadline for notifying HMRC of new sources of income if no tax return has been issued for 2009/10.

31 October 2010 - Deadline for submission of 2009/10 non-electronic returns.

31 January 2011 - Deadline for filing electronic tax returns for 2009/10. Balancing payment due for 2009/10. First payment on account due for 2010/11.

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