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Tax Rates
Income tax rates
Tax Data 2010 / 2011
INCOME TAX RATES
Income Tax - taxable bands |
2010/11 (£) |
2009/10 (£) |
Starting rate: 10%: |
- |
- |
Basic rate: 20%: |
£0 - £37,400 |
£0 - £37,400 |
Higher rate: 40% |
£37,400 - £150,000 |
£37,400 + |
Additional Rate: 50% |
£150,000 + |
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*for 2009/10 only applicable on savings income where it is below £2,440.00., and for 2010/11 below £2,440.00. |
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Dividends |
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Basic rate taxpayers |
10% |
10% |
Higher rate taxpayers |
32.5% |
32.5% |
Additional rate taxplayers |
42.5% |
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Pre-owned assets tax (£5,000 taxable threshold) |
As income |
As income |
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Discretionary and Relevant Property Trusts* |
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Standard rate band |
1,000 |
1,000 |
Dividends (rate applicable to trusts - RAT) |
42.5% |
32.5% |
Other income (rate applicable to trusts - RAT) |
50% |
40% |
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*from 6/4/2008 A&M trusts can only be created by a parent's will, all other trusts will fall under the RPT regime. |
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Interest In Possession Trusts |
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UK Dividends |
10% |
10% |
Savings, rent and trading |
20% |
20% |
INCOME TAX RELIEFS
|
2010/11 |
2009/10 |
Given at marginal rate of income tax |
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|
Personal allowance (minimum) |
6,475 |
6,475 |
Personal allowance (age 65-74) |
9,490 |
9,490 |
Personal allowance (age 75+) |
9,640 |
9,640 |
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Blind Person's Allowance |
1,890 |
1,890 |
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Rent-a-room tax free home income* |
4,250 |
4,250 |
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Relief restricted to 10% |
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Married couples/Civil partnerships allowance (age under 75 and born before 6th April 1935) |
N/A |
N/A |
Married couples/Civil partnerships allowance (age 75+) |
6,965 |
6,965 |
Married couples/Civil partnerships allowance (minimum) |
2,670 |
2,670 |
Income limit for age-related allowances |
22,900 |
22,900 |
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Child Tax Credit (CTC) |
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Family element |
545 |
545 |
Family element baby addition |
545 |
545 |
Child element |
2,300 |
2,235 |
Disabled child element |
2,715 |
2,670 |
Severely disabled child element |
1,095 |
1,075 |
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Working Tax Credit (WTC) |
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Basic element |
1,920 |
1,890 |
Couples & lone parent element |
1,890 |
1,860 |
30 hour element |
790 |
775 |
Disabled worker element |
2,570 |
2,530 |
Severe disability element |
1,095 |
1,075 |
50+ return to work payment (16-29 hours) |
1,320 |
1,300 |
50+ return to work payment (30+ hours) |
1,965 |
1,935 |
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Childcare Element of WTC |
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Maximum eligible cost for one child |
£175 per week |
£175 per week |
Maximum eligible cost for two or more children |
£300 per week |
£300 per week |
Percentage of eligible costs covered |
80% |
80% |
Withdrawal Rates for CTC & WTC |
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|
First income threshold |
6,420 |
6,420 |
First income threshold for CTC only |
16,190 |
16,040 |
First withdrawal rate |
39% |
39% |
Second income threshold |
50,000 |
50,000 |
Second withdrawal rate |
6.67% |
6.67% |
Income increase disregarded |
25,000 |
25,000 |
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Limits for other reliefs |
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Enterprise Investment Scheme (EIS) at 20% |
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Maximum Investment |
500,000 |
500,000 |
EIS capital gains re-investment |
Unlimited |
Unlimited |
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Venture Capital Trusts (VCT) @ 30% |
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Maximum Investment |
200,000 |
200,000 |
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For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.
© Copyright JE Consulting 2010. All rights reserved.
For further details, please contact Danbro for Umbrella Service: 01253 600141, General Enquiries: 01253 600140, London Office: 020 7836 8400 or email enquiries@danbro.co.uk or send an enquiry.
