Tax Tables 2010-11

Income tax and inheritance tax

£ per year (unless stated) 2009-10 2010-11
Income tax personal and age-related allowances
Personal allowance (age under 65) £6,475 £6,475
Personal allowance (age 65-74) £9,490 £9,490
Personal allowance (age 75 and over) £9,640 £9,640
Married couple's allowance* (age 75 and over) £6,965 £6,965
Married couple's allowance* - minimum amount £2,670 £2,670
Income limit for age-related allowances £22,900 £22,900
Blind person’s allowance £1,890 £1,890
Inheritance tax threshold £325,000 £325,000
Pension schemes allowances
Annual Allowance £245,000 £255,000
Lifetime Allowance £1,750,000 £1,800,000

*Married couple's allowance is given at the rate of 10%.

+ From April 2010, the personal allowance will be gradually withdrawn for income over £100,000 at a rate of £1 of allowance lost for every £2 over £100,000 until it is completely removed.

Income tax: taxable bands

£ per year 2009-10 2010-11
Starting rate: 10%* £2,440 £2,440
Basic rate: 20% £1-£37,400 £1-£37,400
Higher rate: 40% Over £37,400 Over £37,400
Additional Rate: 50% ** N/A Over £150,000

* The 10% starting rate is for savings income only.

** From April 2010 a new 50 pence additional tax will apply to income above £150,000 and the income tax personal allowance with gradually be withdrawn for those with incomes over £100,000.

Capital Gains Tax

CGT Annual Exemption 2010-11 Rate
Individuals Up to £10,100 Nil
Over £10,100 18% & 28%
Most Trustees Up to £5,050 Nil
Over £5,050 28%

A new rate of 28% is payable by individuals with capital gains in excess of their annual exemption which when added to their income exceed the income tax higher rate threshold of £37,400.

* From 23/06/2010 entrepreneurs’ relief increased from £2 million to £5 million of qualifying gains (lifetime total), which is taxed at a flat rate of 10% and any excess is charged at either 18% or 28%.

Corporation tax on profits

£ per year (unless stated) 2009-10 2010-11
Small Companies Rate £1-£300,000* 21% 21%
Marginal relief applies £300,001 - £1,500,000 Marginal Relief Marginal Relief
Main Rate £1,500,001 or more 28% 28%

A company’s capital gains are charged to tax at its Corporation Tax rate.

* The small companies’ rate applies to the first £300,000 of profits (whether retained or distributed as dividends).

** The marginal rate is an effective rate that may only be used if the company does not receive UK dividend payments from other companies. If the company does receive dividends, marginal relief will be applied.

Tax planning from Avonbrook

National Insurance Contributions

National insurance contributions 2009-10 2010-11
Lower earnings limit, primary Class 1 £95* £97*
Upper earnings limit, primary Class 1 £844* £844*
Primary threshold £110* £110*
Secondary threshold £110* £110*
Employees’ primary Class 1 rate between primary threshold and upper earnings limit 11% 11%
Employees’ primary Class 1 rate above upper earnings limit 1% 1%
Employees’ contracted-out rebate – salary related schemes 1.60% 1.60%
Employees’ contracted-out rebate – money purchase schemes 1.60% 1.60%
Married women’s reduced rate between primary threshold and upper earnings limit 4.85% 4.85%
Married women’s rate above upper earnings limit 1% 1%
Employers’ secondary Class 1 rate above secondary threshold 12.80% 12.80%
Employers’ contracted-out rebate, salary related schemes 3.70% 3.70%
Employers’ contracted-out rebate, money purchase schemes 1.40% 1.40%
Class 2 rate (per week) £2.40* £2.40*
Class 2 small earnings exception £5,075 per year £5,075 per year
Special Class 2 rate for share fishermen (per week) £3.05* £3.05*
Special Class 2 rate for volunteer development workers £4.75* £4.85*
Class 3 rate (per week) £12.05 £12.05*
Class 4 lower profits limit £5,715 per year £5,715 per year
Class 4 upper profits limit £43,875 per year £43,875 per year
Class 4 rate between lower profits limit and upper profits limit 8% 8%
Class 4 rate above upper profits limit 1% 1%

* Per Week

Stamp taxes and duties. Transfers of land and buildings (consideration paid)

Rate Residential in disadvantaged areas Residential outside disadvantaged areas Non-residential
Total value of consideration
Zero £0 - £150,000 £0 - £125,000 £0 - £150,000
1% Over £150,000 -£250,000 Over £125,000 - £250,000 Over £150,000 - £250,000
3% Over £250,000 - £500,000 Over £250,000 - £500,000 Over £250,000 - £500,000
4% Over £500,000 Over £500,000 Over £500,000
5% Over £1,000,000 n/a n/a

From 1st January 2010, the Zero and 1% rates apply as per the table above.

+ First time buyers can claim relief from SDLT on residential transactions up to £250,000 between 25 March 2010 and 25 March 2012.