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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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