Tax Rates & Tables    
*
Mileage Allowance Payments
*
ISAs
*
*
National insurance
*
Capital gains tax
*
Pension premiums
*
Car & fuel benefits
*
Social security benefits
*
Corporation tax
*
Stamp duty
*
Income tax rates
*
Tax Credits
*
*
VAT
*
Inheritance tax
*
VAT Fuel Scale Charges



Mileage Allowance Payments (2009/10 and 2008/09)
Cars up to 10,000 miles - 40p
  over 10,000 miles - 25p
Bicycles: 20p
Motorcycles: 24p


These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

 

Capital Allowances:

 

Plant and machinery - Annual Investment Allowance (AIA)
The AIA applies to expenditure incurred on or after 6 April 2008 (1 April 2008 for companies). The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long-life assets but not cars, of up to £50,000 p.a.

Any costs over the AIA fall into the normal capital allowance pools at either 10% or 20%. The £50,000 limit may need to be shared between certain businesses under common ownership.

Other plant and machinery allowances
The annual rate of allowance is 20% from 6 April 2008 (1 April 2008 for companies).

A 10% rate applies to expenditure incurred on integral features and on long life assets on or after 6 April 2008 (1 April 2008 for companies). Long life asset expenditure brought forward will obtain the 10% rate.

A 100% first year allowance may still be available on certain energy efficient plant and cars.

Cars
For expenditure incurred on cars on or after 6 April 2009 (1 April 2009 for companies), costs will generally be allocated to one of the two plant and machinery pools. Cars with CO2 emissions not exceeeding 160 gm/km will receive a 20% allowance p.a. Cars with CO2 emissions over 160 gm/km will receive a 10% allowance p.a.

Industrial and agricultural buildings and hotels
The annual rate of allowance is 2% (3%) 6 April 2009 (1 April 2009 for companies). Special rules apply for accounting periods straddling these dates.


 

Capital Gains Tax:


2009/10
2008/09
Individuals - exemption
£10,100
£9,600
       
Trusts - exemption
£5,050
£4,800
- balance of gains
18%
18%

Entrepreneurs’ Relief
For gains arising on or after 6 April 2008, the first £1m of qualifying gains are charged at an effective rate of 10%. Gains in excess of £1m are charged at 18%.

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Car & Fuel Benefits:


Company cars 2009/10
CO2 emissions (gm/km) (round down to nearest 5gm/km)
% of car’s list price taxed
up to 135
15
140
16
145
17
150
18
155
19
160
20
165
21
170
22
175
23
180
24
185
25
190
26
195
27
200
28
205
29
210
30
215
31
220
32
225
33
230
34
235 and above
35

Company cars
  • For diesel cars add a 3% supplement but maximum still 35%. Euro IV diesel cars registered before 1 January 2006 do not suffer the 3% supplement.
  • Discounts apply to certain environmentally friendly cars.
  • A 10% rate applies to non-electric cars with emissions of no more than 120gm/km. Environmentally friendly discounts do not apply to these cars but the diesel supplement does.
  • For cars registered before 1 January 1998 the charge is based on engine size.
  • The list price includes accessories and is subject to an upper limit of £80,000.
  • The list price is reduced for capital contributions made by the employee up to £5,000.

Fuel benefits

  • £16,900 x 'appropriate percentage'.
  • The appropriate percentage is the percentage used to calculate the taxable benefit of the car for which the fuel is provided.
  • The charge is proportionately reduced if provision of private fuel ceases part way through the year.
  • The fuel benefit is reduced to nil only if the employee pays for all private fuel.
Van benefit per vehicle (2009/10 and 2008/09)

Van Benefit: £3,000
Fuel Benefit: £500

The charges will not apply if a ‘restricted private use condition’ is met throughout the year.

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Corporation Tax:
Years to 31.3.10 and 31.3.09
Profits Band
£
Rate
%
Small companies rate
0 - 300,000
21*
Marginal (small companies) rate
300,001 - 1,500,000
29.75*
Full rate
Over 1,500,000
28*
Small companies fraction
7/400*

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

*Different rates apply for ring-fenced (broadly oil industry) profit.

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Income Tax Rates:

2009/10
2008/09
Band
£
Rate
%
Band
£
Rate
%
0 - 2,440
10*
0 - 2,320
10
2,441 - 37,400****
20 **
2,321 - 34,800
20 **
Over 37,400****
40 ***
Over 34,800
40 ***

* Only applicable to dividends and savings income.

** Except dividends (10%).

*** Except dividends (32.5%)

Other income taxed first, then savings income and finally dividends.

Income Tax Reliefs:
   
2009/10
£
2008/09
£
Personal allowance - under 65
6,475
6,035
- 65 - 74 *
9,490
9,030
- 75 and over *
9,640
9,180
Married couple's allowance
(relief at 10%)
- aged less than 75 and
born before 6.4.35 *

n/a

6,535
- 75 and over*
6,965
6,625
- min. amount
2,670
2,540
* Age allowance income limit
22,900
21,800
(reduce age allowance by £1 for every £2 of excess income over £22,900)
Blind person’s allowance
1,890
1,800

 

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Inheritance Tax:

   
Chargeable Transfers
Death Rate
%
Lifetime Rate
%
2009/10
£’000
2008/09
£’000
Nil
Nil
0 - 325*
0 - 312*
40
20
Over 325*
Over 312*
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
Reliefs:
Annual exemption £3,000 Marriage - parent £5,000
Small gifts £250   - grandparent £2,500
  - bride/groom £2,500
  - other £1,000
Reduced charge on gifts within seven years of death:
Years before death
0-3
3-4
4-5
5-6
6-7
% of death charge
100
80
60
40

 

Individual Savings Accounts (ISAs)
2009/10 and 2008/09 
£
Overall investment limit
7,200
Comprising
- cash up to
3,600 max
- balance in stocks and shares
7,200 max

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National Insurance:

 

Class 1 (employed)
Contracted in
2009/10 Rates
Weekly earnings
Employer
Employee
Up to £110
Nil*
Nil*
£110.01 - £844
12.8%**
11%**
Over £844
12.8%**
£80.74 +1%***
* Entitlement to contribution-based benefits retained for earnings between £95.01 and £110 per week.
** On earnings above £110.
*** On earnings above £844.

Class 1A (employers) 12.8% on employee taxable benefits
Class 1B (employers) 12.8% on PAYE Settlement Agreements
Class 2 (self-employed) flat rate per week £2.40
small earnings exception £5,075 p.a.
Class 3 (voluntary) flat rate per week £12.05
Class 4 (self-employed) 8% on profits between £5,715 and £43,875 plus 1% on profits over £43,875

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Pension Premiums (2009/10 and 2008/09)
  • Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings

  • Employers will obtain tax relief on employer contributions if they are paid and made 'wholly and exclusively'. Tax relief for large contributions may be spread over several years.

  • Any contributions in excess of £245,000 (£235,000), whether personal or by the employer, will be subject to income tax on the individual at 40%.

  • No carry back of pensions contributions.

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Main Social Security Benefits:
Weekly Benefit
2009/10
2008/09
Basic retirement pension - single person
£95.25
£90.70
- married couple
£152.30
£145.50
Statutory pay rates - average weekly earnings £95 (£90) or over
Statutory Sick Pay
£79.15
£75.40
Statutory Maternity Pay
- first six weeks
90% of weekly earnings
- next 33 weeks
£123.06*
£117.18*
Statutory Paternity Pay - two weeks
£123.06*
£117.18*
Statutory Adoption Pay - 39 weeks
£123.06*
£117.18*

* Or 90% of weekly earnings if lower

 

Stamp Duty & Stamp Duty Land Tax:

Land and buildings (On full consideration paid)

Rate
Residential property *
Non-residential
Disadvantaged areas
£
Other
£

£
Nil
0 - 150,000*
0 - 125,000*
0 - 150,000
1%
150,001* - 250,000
125,001* - 250,000
150,001 - 250,000
3%
250,001 - 500,000
250,001 - 500,000
250,001 - 500,000
4%
Over 500,000
Over 500,000
Over 500,000

* £175,000 for transactions with an effective date on or after 3 September 2008 and before 3 September 2009.

Shares and securities - rate 0.5%

 

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Tax Credits:


 
2009/10
£
2008/09
£
Working Tax Credit (WTC)
Basic element - max.
1,890
1,800
Childcare element
80% of eligible costs up to £175 per week (£300 if two or more children)

Child Tax Credit (CTC)
Child element per child - max.
2,235
2,085
Family element
545
545
Baby addition
545
545

Reductions in maximum rates 39% of income above £6,420*.

*If only CTC is claimed, the threshold is £16,040 (£15,575) p.a.. The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.

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Value Added Tax :
Standard Rate* 17.5%
Reduced Rate 5%
Annual Registration Limit - from 1.4.09
(1.4.08 - 31.3.09 £67,000)
£XX,000**
Annual Deregistration Limit - from 1.4.09
(1.4.08 - 31.3.09 £65,000)
£XX,000**

* 15% from 1 December 2008 to 31 December 2009.

** to be confirmed in the Budget Report 2009.

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VAT Fuel Scale Charges

Where businesses buy fuel which has some degree of private use, they must account for output VAT on a scale charge. This is based on the CO2 emissions (rounded down to the next multiple of 5).

In his Pre Budget report on 24 November 2008, the Chancellor announced that the standard rate of VAT was being temporarily reduced to 15% for thirteen months starting on 1 December 2008. It will revert to 17.5% on 1 January 2010.

These are the charges which apply from the start of the first prescribed accounting period beginning on or after 1 December 2008.

CO2 band

VAT fuel
scale charge,
12 month period

VAT on
12 month charge

VAT fuel
scale charge,
3 month period

VAT on
3 month charge

VAT fuel
scale charge,
1 month period

VAT on
1 month charge

 
£
£
£
£
£
£

120 or less

555

72.39

138

18.00

46

6.00

125 – 139

830

108.26

207

27.00

69

9.00

140 – 144

885

115.43

221

28.83

73

9.52

145 – 149

940

122.61

234

30.52

78

10.17

150 – 154

995

129.78

248

32.35

82

10.70

155 – 159

1,050

136.96

262

34.17

87

11.35

160 – 164

1,105

144.13

276

36.00

92

12.00

165 – 169

1,160

151.30

290

37.83

96

12.52

170 – 174

1,215

158.48

303

39.52

101

13.17

175 – 179

1,270

165.65

317

41.35

105

13.70

180 – 184

1,325

172.83

331

43.17

110

14.35

185 – 189

1,380

180.00

345

45.00

115

15.00

190 – 194

1,435

187.17

359

46.83

119

15.52

195 – 199

1,490

194.35

373

48.65

124

16.17

200 – 204

1,545

201.52

386

50.35

128.

16.70

205 – 209

1,605

209.35

400

52.17

133

17.35

210 – 214

1,660

216.52

414

54.00

138

18.00

215 – 219

1,715

223.70

428

55.83

142

18.52

220 – 224

1,770

230.87

442

57.65

147

19.17

225 – 229

1,825

238.04

455

59.35

151

19.70

230 – 234

1,880

245.22

469

61.17

156

20.35

235 or more

1,935

252.39

483

63.00

161

21.00

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