TAX RATES:
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INCOME TAX Tax rates |
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2010/11 |
2009/10 |
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Basic rate band- income up to |
£37,400 |
£37,400 |
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Starting rate for savings |
*10% |
*10% |
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Basic rate |
20% |
20% |
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Dividend ordinary rate |
10% |
10% |
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Higher rate - income over |
£37,400 |
£37,400 |
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Higher tax rate |
40% |
40% |
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Dividend upper rate |
32.5% |
32.5% |
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Additional rate - income over |
£150,000 |
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Higher tax rate |
50% |
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Dividend upper rate |
42.5% |
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Personal allowance (PA) |
under 65 |
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£6,475 |
£6,475 |
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65 to 74 |
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*£9,490 |
*£9,490 |
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75 and over |
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*£9,640 |
*£9,640 |
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Ages are as at the end of the tax year. *Age related allowances are reduced by £1 for every £2 that adjusted net income exceeds £22,900 to a minimum PA of £6,475. For 2010-11, where adjusted net income exceeds £100,000, PA is reduced in the same way until it becomes nil.
Allowances that reduce tax |
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Enterprise Investment Scheme (EIS) up to |
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£500,000 |
£500,000 |
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Venture Capital Trust (VCT) up to |
£200,000 |
£200,000 |
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Rent a Room - exempt on gross annual rent up to |
£4,250 |
£4,250 |
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NATIONAL INSURANCE CONTRIBUTIONS
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Corporation Tax
Corporation tax rates and bands are as follows:
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CAPITAL GAINS TAX
Capital gains tax rates and bands are as follows:
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Rates Before 23.6.10 After 22.6.10
Individuals
Standard rate 18% 18%
Higher rates 18% 28%
Trustees 18% 28%
VAT
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From |
1 Jan 2011 |
1 Jan 2010 |
|
Standard rate |
20% |
17.5% |
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VAT fraction |
1/6 |
7/47 |
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Current Turnover Limits |
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Registration - last 12 months or next 30 days over |
£70,000 |
from 1 April 2010 |
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Deregistration - next 12 months under |
£68,000 |
from 1 April 2010 |
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Cash accounting scheme - up to |
£1,350,000 |
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Optional flat rate scheme - up to |
£150,000 |
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Annual accounting scheme - up to |
£1,350,000 |
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INHERITANCE TAX
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All lifetime transfers not covered by exemptions and made within seven years of death will be added
back into the estate for the purpose of calculating the tax payable. Tax attributable to such transfers
is then reduced:
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Main Exemptions
Most transfers between spouses and civil partners.
The first £3,000 of lifetime transfers in any tax year plus any unused balance from previous year.
Gifts of up to but not exceeding £250 p.a to any number of persons.
Gifts in consideration of marriage or civil partnership of: up to £5,000 by a parent, up to £2,500 by a grandparent,or up to £1,000 by any other person.
Gifts made out of income that form part of normal expenditure and do not reduce the standard of living.
Gifts to charities, whether made during lifetime or on death.
STAMP DUTY
The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is unchanged at 0.5 per cent.
Stamp Duty Land Tax
Transfers of property are subject to stamp duty land tax at the following rates:
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Value up to £125,000* |
Nil |
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Over £125,000* to £250,000 |
1%** |
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Over £250,000 to £500,000 |
3% |
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Over £500,000 |
4% |
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* £150,000 for non-residential property and residential
property in disadvantaged areas. Special rules apply for new zero-carbon
homes. |
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