Budget 2011 - 12 |
| |
| SUMMARY |
Personal allowances increased to £7,475
but basic rate band reduced to £35,000.
Corporation tax down to 20% |
| |
| ALLOWANCES |
| Personal allowance |
£7,475 raising to £8,105 next year |
| Lower age (under 75) allowance |
£9,940 |
| Upper age allowance |
£10,090 |
| Allowances given at 10% (for elderly married
couples only) |
| Minimum married couple's allowance |
£2,800 (income limit £24,000) |
| |
| TAX RATE BANDS (increased with inflation) |
| £0 - £2,560 |
10% savings rate only |
| £0 - £35,000 |
20% - reducing to £34,370 in 2012/13 |
| over £35,000 |
40% |
| |
| VAT threshold for registration increased
to £73,000. |
| |
| ISAs The amount you can invest in an
ISA increases to £10,680 of which half can be in a cash ISA. |
| |
| NATIONAL INSURANCE |
Lower earnings limit for employees becomes
£102 per week - upper earnings limit £817 per week
in April 2011.
Rate increased to 12%.
Lower limit for self-employed profits £7,225 - upper limit
£42,475 taxed at 9% (class 4 NIC) 1% thereafter.
Self-employed class 2 (usually direct debited) £2.50 per
week. |
| |
| CORPORATION TAX |
The small company rate of Corporation Tax is
20% for 2011/12.
The tax free business mileage rate increased to 45p per mile
from April 2011 (over 10,000 miles at 25p as before). |
| |
| DIVIDENDS are deemed to have
suffered tax at 10% and are taxable at that rate for basic rate
taxpayers. Additional tax for higher rate. |
| |
| CAPITAL ALLOWANCES to reduce from 20%
to 18% from 2012 – annual investment allowance reduced
to £25,000 pa. |
| |
| CAPITAL GAINS TAX exempt up to £10,100,
then 18% but increased to 28% where the gain exceeds the basic
rate tax threshold. |
