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Tax Tables
Tax rates and allowances 2009
| 2009/10 | 2008/09 | |
| Income tax rates | £ | £ |
| 10% lower rate tax - savings rate only | Up to 2,440 | Up to 2,320 |
| 20% basic rate tax | Up to 37,400 | Up to 34,800 |
| 22% basic rate tax | - | - |
| 40% higher rate tax | above 37,400 | above 34,800 |
| 10% starting rate applies to savings income only and will not apply if non-savings income exceeds threshold. | ||
| No change to 10% dividend ordinary rate or 32.5% dividend upper rate. | ||
| A new higher rate of 50% will apply for taxable income above £150,000 from 2010/11 (42.5% for dividend income). | ||
| Personal Allowances | ||
| Personal allowance (age under 65) | 6,475 | 6,035 |
| Personal allowance (age 65 - 74) | 9,490 | 9,030 |
| Personal allowance (age 75 and over) | 9,640 | 9,180 |
| Married couple's allowance (age less than 75 and born before 6 April 1935) | N/A | 6,535 |
| Married couple's allowance (age 75 and over) | 6,965 | 6,625 |
| Married couple's allowance - minimum amount | 2,670 | 2,540 |
| Income limit for age-related allowances | 22,900 | 21,800 |
| Blind person's allowance | 1,890 | 1,800 |
| Tax relief for married couples allowance is given at the rate of 10%. Age-related allowances are abated by £1 for every £2 that income exceeds threshold. (Note: 65 - 75 years married couples allowance no longer applies for 2009/10 as all taxpayers born before 6 April 1935 will reach 75 years old before end of tax year). | ||
| Abatement of personal allowance will apply of £1 for every £2 of taxable income in excess of £100,000 from 2010/11. | ||
| National insurance | ||
| Lower earnings limit, primary Class 1 (per week) | 95 | 90 |
| Upper earnings limit, primary Class 1 (per week) | 844 | 770 |
| Upper accrual point * | 770 | – |
| Primary and secondary threshold (per week) | 110 | 105 |
| Employee's primary Class 1 rate between primary threshold and upper earnings limit | 11.00% | 11.00% |
| Employee's primary Class 1 rate above upper earnings limit | 1.00% | 1.00% |
| Employee's contracted-out rebate - salary-related scheme | 1.60% | 1.60% |
| Employee's contracted-out rebate - money-purchase scheme | 1.60% | 1.60% |
| Married woman's reduced rate between primary threshold and upper earnings limit | 4.85% | 4.85% |
| Married woman's rate above upper earnings limit | 1.00% | 1.00% |
| Employer's secondary Class 1 rate above secondary threshold | 12.80% | 12.80% |
| Employer's contracted-out rebate, salary-related schemes | 3.70% | 3.70% |
| Employer's contracted-out rebate, money-purchase schemes | 1.40% | 1.40% |
| Class 2 rate (per week) | 2.40 | 2.30 |
| Class 2 small earning exception (per year) | 5,075 | 4,825 |
| Special Class 2 rate for share fishermen (per week) | 3.05 | 2.95 |
| Special Class 2 rate for volunteer development workers | 4.75 | 4.50 |
| Class 3 rate (per week) | 12.05 | 8.10 |
| Class 4 lower profits limit | 5,715; | 5,435 |
| Class 4 upper profits limit | 43,875 | 40,040 |
| Class 4 rate between lower profits limit and upper profits limit | 8.00% | 8.00% |
| Class 4 rate above upper profits limit | 1.00% | 1.00% |
| The Upper Accrual Point is a new threshold for the calculation of both State Second Pension and contracted-out rebates. | ||
| State pension/pension credit | ||
| State pension | ||
| Category A or B basic pension | 95.25 | 90.70 |
| Category B basic pension (lower) - husband's insurance | 57.05 | 54.35 |
| Category C or D - non-contributory | 57.05 | 54.35 |
| Pension Credit | ||
| Standard minimum guarantee - single | 130.00 | 124.05 |
| Standard minimum guarantee - couple | 198.45 | 189.35 |
| From 6 April 2011, Granparents and other family members will be able to gain credits towards the basic State Pension for caring for children aged 12 or younger for 20 hours per week or more. | ||
| Pensions | ||
| Annual allowance | 245,000 | 235,000 |
| Lifetime allowance | 1,750,000 | 1,650,000 |
| Relief's and incentives | ||
| Enterprise Investment Scheme (EIS) - maximum | 500,000 | 500,000 |
| Venture Capital Trust (VCT) - maximum | 200,000 | 200,000 |
| Enterprise Management Incentive Scheme (EMI) - employee limit | 120,000 | 120,000 |
| Individual Savings Account (ISA): | ||
| Individuals aged 50 years old or above during tax year: | ||
| - total maximum investment | 10,200 | 7,200 |
| - maximum cash element of ISA | 5,100 | 3,600 |
| Others: | ||
| - total maximum investment | 7,200 | 7,200 |
| - maximum cash element of ISA | 3,600 | 3,600 |
| Increased ISA limits to be extended to all with effect from 2010/11. | ||
| Capital gains tax | ||
| Rate | 18% | 18% |
| Individuals | 10,100 | 9,600 |
| Certain trusts for disabled persons | 10,100 | 9,600 |
| Other trusts | 5,050 | 4,800 |
| From the 6 April 2008 an Entrepreneurs relief in available for the first £1,000,000 of a relevant gain. The gain (of up to £1,000,000) is reduced by four-fifths of the gain if eligible for Entrepreneurs relief. |
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