Tax Rates & Allowances 2009-10

• Income Tax
• Pensions & Savings
• Vehicles
• Corporation Tax
• Main Capital Allowances
• Value Added Tax
• National Insurance
• Capital Gains Tax
• Inheritance Tax
• Stamp Taxes
• Selected Rate

Important Information for company & LLP officer

Income Tax
Rates			2009-10	2008-09
Basic Rate			20%	20%
Higher Rate			40%	40%
Starting Savings Rate Chargeable on investment income			10%	10%
Threshold of taxable income above which higher rate applies			£37,400	£34,800
Flat rate applicable to discretionary & accumulation trusts			40%	40%
Dividend rate applicable to discretionary & accumulation trusts			32.5%	32.5%
For individuals who are not higher rate taxpayers, the rate of tax on dividend income is 10% of the gross amount. For higher rate tax payers, the rate is 32.5%
The starting savings rate of 10% applies to other savings income up to a limit of £2440
A new higher rate of 50% for income over £150,000 has been announced for 2010/11
Allowances that reduce Taxable Income
Personal allowances (PA)		- under 65	£6,475	£6,035
		- 65 to 74	£9,490	£9,030
		- 75 and over	£9,650	£9,180
Registered Blind Person's Allowance			£1,890	£1,800
Married Couple's Allowance (MCA)
Tax Reduction(PA)		- 65 to 74	-	£6,535
		- 75 and over	£6,965	£6,635
Ages are at the end of the tax year. Ages for MCA relate to the elder spouse.
MCA is available only to couples where at least one spouse was aged over 65
or over on 5 April 2000
Age-related allowances progressively withdrawn if income exceeds £22,900.
Tax Shelters
Enterprise Investment Scheme up to			£400,000	£400,000
Venture Capital Trust up to			£200,000	£200,000
'Rent a Room'
Exempt on gross annual rent			£4,250	£4,250
S
Construction Industry Scheme
Deduction rate			20/30%	20/30%

Pensions & Savings
Pensions
There is no limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual's UK relevant earnings or £3,600. If total pension input exceeds the annual allowance of £245,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that full pension benefits are taken.
Minimum age for tax relief	74
Minimum age for taking benefits	50
Lifetime allowance charge - lump sum paid 55% - monies	25%
retained on cumulative benefits exceeding	£1,750,000*
Maximum tax-free lump sum	25%*
*Subject to transitional protection for excess amount
ISAs:
Overall investment limit		£7,200
Including cash maximum of		£3,600

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