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Tax Tables
Budget 2011 - Tax rates and allowances
A SIMPLE GUIDE TO THE TAX RATES AND ALLOWANCES ANNOUNCED IN THE BUDGET REPORT 2011
This is a basic guide, prepared by our Technical Advisory team for our clients.
It is an introduction only and should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary.
| 2011/12 | 2010/11 | 2009/10 | |
| Income tax rates | £ | £ | £ |
| 10% lower rate tax - savings rate only | Up to 2,560 | Up to 2,440 | Up to 2,440 |
| 20% basic rate tax | Up to 35,000 | Up to 37,400 | Up to 37,400 |
| 40% higher rate tax | 35,000 - 150,000 | 37,401 - 150,000 | Above 37,400 |
| 50% higher rate tax | Above £150,000 | Above £150,000 | Above £150,000 |
| 10% starting rate applies to savings income only and will not apply if non-savings income exceeds threshold. | |||
| Income Tax Rates (dividend income) | |||
| 10% rate | Up to 35,000 | Up to 37,400 | Up to 37,400 |
| 32.5% higher dividend rate | 35,001 - 150,000 | 37,401 - 150,000 | Above 37,400 |
| 42.5% higher dividend rate | Above £150,000 | Above £150,000 | Above £150,000 |
| Personal Allowances | |||
| Personal allowance (age under 65) | 7,475 | 6,475 | 6,475 |
| Personal allowance (age 65 - 74) | 9,940 | 9,490 | 9,490 |
| Personal allowance (age 75 and over) | 10,090 | 9,640 | 9,640 |
| Married couple's allowance (age less than 75 and born before 6 April 1935) | N/A | N/A | N/A |
| Married couple's allowance (age 75 and over) | 7,295 | 6,965 | 6,625 |
| Married couple's allowance - minimum amount | 2,800 | 2,670 | 2,670 |
| Income limit for under 65 personal allowance | 100,000 | 100,000 | N/A |
| Income limit for age-related allowances | 24,000 | 22,900 | 22,900 |
| Blind person's allowance | 1,980 | 1,890 | 1,890 |
| Abatement of personal allowance will apply of £1 for every £2 of taxable income in excess income limit. | |||
| National insurance | |||
| Lower earnings limit, primary Class 1 (per week) | 102 | 95 | 95 |
| Upper earnings limit, primary Class 1 (per week) | 817 | 844 | 844 |
| Upper accrual point * | 770 | 770 | 770 |
| Primary and secondary threshold (per week) | 139 | 110 | 110 |
| Employee's primary Class 1 rate between primary threshold and upper earnings limit | 12.00% | 11.00% | 11.00% |
| Employee's primary Class 1 rate above upper earnings limit | 2.00% | 1.00% | 1.00% |
| Employee's contracted-out rebate - salary-related scheme | 1.60% | 1.60% | 1.60% |
| Employee's contracted-out rebate - money-purchase scheme | 1.60% | 1.60% | 1.60% |
| Married woman's reduced rate between primary threshold and upper earnings limit | 5.85% | 4.85% | 4.85% |
| Married woman's rate above upper earnings limit | 2.00% | 1.00% | 1.00% |
| Employer's secondary Class 1 rate above secondary threshold | 13.80% | 12.80% | 12.80% |
| Employer's contracted-out rebate, salary-related schemes | 3.70% | 3.70% | 3.70% |
| Employer's contracted-out rebate, money-purchase schemes | 1.40% | 1.40% | 1.40% |
| Class 2 rate (per week) | 2.50 | 2.40 | 2.40 |
| Class 2 small earning exception (per year) | 5,315 | 5,075 | 5,075 |
| Special Class 2 rate for share fishermen (per week) | 3.15 | 3.05 | 3.05 |
| Special Class 2 rate for volunteer development workers | 5.10 | 4.75 | 4.75 |
| Class 3 rate (per week) | 12.60 | 12.05 | 12.05 |
| Class 4 lower profits limit | 7,225 | 5,715; | 5,715 |
| Class 4 upper profits limit | 42,475 | 43,875 | 43,875 |
| Class 4 rate between lower profits limit and upper profits limit | 9.00% | 8.00% | 8.00% |
| Class 4 rate above upper profits limit | 2.00% | 1.00% | 1.00% |
| State pension/pension credit | |||
| State pension | |||
| Category A or B basic pension | 102.15 | 96.75 | 95.25 |
| Category B basic pension (lower) - husband's insurance | 61.20 | 58.50 | 57.05 |
| Category C or D - non-contributory | 61.20 | 58.50 | 57.05 |
| Pension Credit | |||
| Standard minimum guarantee - single | 137.35 | 132.60 | 130.00 |
| Standard minimum guarantee - couple | 209.70 | 202.40 | 198.45 |
| for children aged 12 or younger for 20 hours per week or more. | |||
| Pensions | |||
| Annual allowance | 50,000 | 255,000 | 245,000 |
| Lifetime allowance | 1,800,000 | 1,800,000 | 1,750,000 |
| Age at which annuity required | N/A | 75 | 75 |
| Relief's and incentives | |||
| Enterprise Investment Scheme (EIS) - maximum | 500,000 | 500,000 | 500,000 |
| Venture Capital Trust (VCT) - maximum | 200,000 | 200,000 | 200,000 |
| Enterprise Management Incentive Scheme (EMI) - employee limit | 120,000 | 120,000 | 120,000 |
| Income tax relief on EIS schemes | 30% | 20% | 20% |
| Income tax relief on VCT Schemes | 30% | 30% | 30% |
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From April 2012 EIS maximum will increase from £500,000 to £1 million. |
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| Individual Savings Account (ISA): | |||
| Individuals aged 50 years old or above during tax year: | |||
| - total maximum investment | 10,680 | 10,200 | 10,200 |
| - maximum cash element of ISA | 5,340 | 5,100 | 5,100 |
| Others: | |||
| - total maximum investment | 10,680 | 10,200 | 7,200 |
| - maximum cash element of ISA | 5,340 | 5,100 | 3,600 |
| Capital gains tax | |||
| Rate - basic rate tax payer | 18% | 18% | 18% |
| Rate - higher rate tax payer (from 23 June 2010 | 28% | 28% | |
| Individuals | 10,600 | 10,100 | 10,100 |
| Certain trusts for disabled persons | 10,600 | 10,100 | 10,100 |
| Other trusts | 5,300 | 5,050 | 5,050 |
| Entrepreneurs Relief lifetime limit | 10,000,000 | 2,000,000 | 1,000,000 |
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Rate of Entrepreneurs Relief on relevant gains |
10% | 4/9ths | 4/9ths |
| Entrepreneurs lifetime limit were £2,000,000 from 6 April to 22 June 2010 and £5,000,000 from 23 June 2010 to 5 April 2011. | |||
Working and Child tax credits rates |
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| Working Tax Credit | |||
| Basic element | 1,920 | 1,920 | 1,890 |
| Couple and lone parent element | 1,950 | 1,890 | 1,860 |
| 30 hour element | 790 | 790 | 775 |
| Disabled worker element | 2,650 | 2,570 | 2,530 |
| Severe disability element | 1,130 | 1,095 | 1,075 |
| 50+ return to work payment (16-29 hours) | 1,365 | 1,320 | 1,300 |
| 50+ return to work payment (30+ hours) | 2,030 | 1,965 | 1,935 |
Childcare element of the Working tax credit |
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| Maximum eligible cost for one child (per week) | 175 | 175 | 175 |
| Maximum eligible cost for two or more children (per week) | 300 | 300 | 300 |
| Percentage of eligible costs covered | 70.00% | 80.00% | 80.00% |
Child tax credit |
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| Family element | 545 | 545 | 545 |
| Family element, baby addition | nil | 545 | 545 |
| Child element | 2,555 | 2,300 | 2,235 |
| Disabled child element | 2,800 | 2,715 | 2,670 |
| Severely disabled child element | 1,130 | 1,095 | 1,075 |
Income threshold and withdrawal rates |
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| First income threshold | 6,420 | 6,420 | 6,420 |
| First withdrawal rate | 41% | 39.00% | 39.00% |
| Second income threshold | 40,000 | 50,000 | 50,000 |
| Second withdrawal rate | 41% | 6.67% | 6.67% |
| First threshold for those entitled to Child tax credit only | 15,860 | 16,190 | 16,040 |
| Income disregard | 10,000 | 25,000 | 25,000 |
Child benefit/Guardian's allowance rates |
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| Eldest/only child | 20.30 | 20.30 | 20.00 |
| Other children | 13.40 | 13.40 | 13.20 |
| Guardian's allowance | 14.75 | 14.30 | 14.10 |
| The child element of child tax credit will increase by £60 above indexation in April 2012. Families earning more than £40,000 per annum will have child tax credit reduced at a rate of 41% from April 2011.
Benefits and tax credits will be calculated using the Consumer Prices Index instead of the Retail Prices Index from April 2011 |
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Inheritance tax |
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| Single persons nil rate band | 1 - 325,000 | 1 - 325,000 | 1 - 325,000 |
| Single persons 40% band | over 325,000 | over 325,000 | over 325,000 |
| Married couples or civil partnerships allowance nil rate band | 650,000 | 650,000 | 650,000 |
| From 6 April 2012 a reduced rate of IHT of 36% will be introduced where 10% or more of the net estate is left to charity. | |||
Taxation of trusts |
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| Trust tax rate excluding dividend income | 50.00% | 50.00% | 40.00% |
| Dividend trust rate | 42.50% | 42.50% | 32.50% |
| Basic rate trust income tax band | 1,000 | 1,000 | 1,000 |
| Corporation tax | |||
| Normal main rate (profits above £1,500,000) | 26% | 28% | 28% |
| Small companies rate (profits below £300,000) | 20% | 21% | 21% |
| Margin relief fraction | 3/200 | 7/400 | 7/400 |
Capital Allowances |
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Main writing down allowance |
20% | 20% | 20% |
| Special rate writing down allowance | 10% | 10% | 10% |
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Temporary first year allowance |
0 | 0% | 40% |
| Annual Investment Allowance | 100,000 | 100,000 | 50,000 |
Research and Development Tax Credit Rates |
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| SME Rate | 200% | 175% | 175% |
| Large company rate | 130% | 130% | 130% |
VAT |
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| Standard rate (increased to 20% from 4 January 2011) | 20% | 17.5% | 15% |
| Registration threshold | 73,000 | 70,000 | 68,000 |
| Deregistration threshold | 71,000 | 68,000 | 66,000 |
| Cash accounting scheme | 1,350,000 | 1,350,000 | 1,350,000 |
| Annual accounting scheme | 1,350,000 | 1,350,000 | 1,350,000 |
| Flat rate scheme | 150,000 | 150,000 | 150,000 |
| Flat rate scheme exit threshold | 230,000 | 225,000 | 225,000 |
| The standard rate increased to 20% from January 2011. | |||
Stamp duty land tax (SDLT) |
From 06.04.11 | 01.01.10 to 05.04.11 | 03.09.08 - 31.12.09 |
| 0% residential | 0 - 125,000 | 0 - 125,000 | 0 - 175,000 |
| 1% residential | 125,001 - 250,000 | 125,001 - 250,000 | 175,001 - 250,000 |
| 3% residential | 250,001 - 500,000 | 250,001 - 500,000 | 250,001 - 500,000 |
| 4% residential | 500,001 - 1,000,000 | over 500,000 | over 500,000 |
| 5% residential | over 1,000,000 | N/A | N/A |
| 0% non-residential | 0 - 150,000 | 0 - 150,000 | 0 - 150,000 |
| 1% non-residential | 150,001 - 250,000 | 150,001 - 250,000 | 150,001 - 250,000 |
| 3% non-residential | 250,001 - 500,000 | 250,001 - 500,000 | 250,001 - 500,000 |
| 4% non-residential | over 500,000 | over 500,000 | over 500,000 |
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The 0% threshold will be doubled to £250,000 where the purchaser (or all of the purchasers) are first-time buyers, in respect of purchases whose completion date falls between 25 March 2010 and 24 March 2012 inclusive. |
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| Insurance Premium Tax | |||
| Standard rate | 6.0% | 5.0% | 5.0% |
| Higher rate | 20.0% | 17.5% | 17.5% |
| IPT increased to 6.0% and 20.0% from 4 January 2011. | |||
Legal Notice |
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This is a basic guide prepared by the Technical Advisory Service for clients. It should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary. |
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