Budget 2010 - 11 |
| (as amended by emergency budget 22nd
June 2010) |
| |
SUMMARY No change from 2009/10; personal
allowance reduced by £1 for each £2 income over £100,000.
50% tax on income over £150,000.
Changes due from emergency budget: VAT up to 20%. |
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| ALLOWANCES |
| Personal allowance |
£6,475 (as before) raising to £7,475 |
| Lower age (under 75) allowance |
£9,490 (as before) |
| Upper age allowance |
£9,640 (as before) |
| Allowances given at 10% (for elderly married couples
only) |
| Minimum married couple's allowance |
£2,670 (income limit £22,900) |
| Lower / Upper married allowance |
£6,865 / £6,965 (age over 75) |
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| TAX RATE BANDS (increased with inflation) |
| £0 - £2,440 |
10% savings rate only |
| £0 - £37,400 |
20% - reducing by £2,500 in 2011/12 |
| over £37,400 |
40% over £34,900 in 2011/12 |
| Self-employed weekly NI rate remains at £2.40 |
| |
| VAT rate to increase to 20% on 4th
January 2011; new flat rates. |
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| ISAs The amount you can invest in an ISA
increases to £10,200 of which half can be in a cash ISA. |
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| NATIONAL INSURANCE |
Lower earnings limit for employees becomes £97
per week - upper earnings limit £844 per week in April 2010.
Rate increasing from 11% to 12% in 2011/12.
Lower limit for self-employed profits £5,715.
Upper limit £43,875 taxed at 8% (class 4 NIC) 1% thereafter.
Increasing by 1% in 2011.
Self-employed class 2 (usually direct debited) £2.40 per week.
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| CORPORATION TAX |
The small company rate of Corporation Tax remains
at 21% (the increase to 22% has been change to a reduction to
20% in 2011/12).
Large company rate to reduce to 24% by 2014.
Company vans with any private use suffer a £3,000
scale charge.
Dividends are deemed to have suffered tax at 10% and are taxable
at that rate for basic rate taxpayers. Additional tax for higher
rate. |
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CAPITAL ALLOWANCES The first year allowance
for capital expenditure below £50,000 is 100%, but the writing
down allowance will decrease from 25% to 20%. Pools up to £1,000
may be w/o.
Reduced from 20% to 18% from 2012.
Annual investment allowance
reduced to £25,000 pa. |
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CAPITAL GAINS TAX Exempt limit £10,100.
Flat rate 18% thereafter.
To be increased to 28% where the gain exceeds the basic rate
tax threshold from 22nd June 2010.
Entrepreneurs relief has been brought in to effectively reduce
capital gains tax on business assets to 10% (as with taper relief).
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| VALUE ADDED TAX Registration threshold
£70,000 sales p.a. |
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VEHICLE TAX for high fuel consumption
vehicles will increase.
Vehicle tax for economic (green) vehicles will reduce.
|
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INHERITANCE TAX at 40% on estates valued
at over £325,000 at the date of death.
Widows/(ers) can use the (current) unused exempt band from pre-deceased
spouse (or partner). |
