Tax Tables 2009 - 2010

Basic State Pension

2009/10 2008/09
Weekly Annual Weekly Annual
Single person £95.25 £4,953.00 £90.70 £4,716.40
Dependant’s addition £57.05 £2,966.60 £54.35 £2,826.20
Total married pension £152.30 £7,919.60 £145.05 £7,542.60
Pension Credit - Standard Income Guarantee 2009/10
Single £130.00 pw £6,760.00 pa
Married £198.45 pw £10,319.40 pa

Capital Gains Tax

Exemptions 2009/10 2008/09
Individuals, estates, etc £10,100 £9,600
Trusts generally £5,050 £4,800
Chattels proceeds ( 5 / 3 excess gain is taxable) £6,000 £6,000
Rates 2009/10 2008/09
Individuals 18% 18%
Trusts and estates 18% 18%

Entrepreneurs' Relief 2008/10:
4/9ths of business gain (effective tax rate of 10%). Lifetime limit: £1,000,000
For trading businesses and companies (min. 5% employee/director shareholding) held for at least one year

Car Benefit For Employees

Taxable amount based on car's list price when new up to £80,000.

Charge varies according to CO 2 emissions in grams per kilometre.

CO 2
g/km
% of price
08-10
120 or less 10
121-139 15
140-4 16
145-9 17
150-4 18
155-9 19
160-4 20
165-9 21
170-4 22
175-9 23
180-4 24
185-9 25
190-4 26
195-9 27
200-4 28
205-9 29
210-4 30
215-9 31
220-4 32
225-9 33
230-4 34
235+ 35

Further reductions may apply for LPG, bi-fuel, E85 hybrid and electric cars.

Diesels not meeting Euro IV or registered after 31 December 2005, add 3% subject to maximum charge of 35%.

Vans for private use 2009/10 2008/09
Chargeable amount £3,000 £3,000
No charge if private use is limited to journeys between home and work.

Child Trust Fund

Children born after 31 August 2002
Endowment: Initial and at age 7 £250
Endowment: Low income families £500
Annual contributions from family and friends up to: £1,200

Company Cars – Advisory Fuel Rates From 1/7/09

Engine Size Petrol Diesel LPG
1,400cc or less 10p 10p 7p
1,401cc to 2,000cc 12p 10p 8p
Over 2,000cc 18p 13p 12p

Corporation Tax

Profits £ Effective rate to 31/3/10 Effective rate to 31/3/09
0–300,000 21% 21%
300,001–1,500,000 29.75% 29.75%
1,500,001 and over 28% 28%

Employee Share Schemes Limits

2008/10
Share incentive plans Employer contribution £3,000
Share incentive plans Employer matching (2:1) £3,000
Share incentive plans Employee contribution £1,500
Enterprise management incentive option value £120,000
Approved share option schemes option value £30,000
Savings-related share options per month £250

Fuel Benefit

2009/10 2008/09
Multiply the CO 2 percentage used for the car benefit by £16,900 £16,900
Vans – flat charge £500 £500

Income Tax

Rates 2009/10 2008/09
10% starting rate band on savings income up to* £2,440 £2,320
Basic rate 20% 20%
Higher rate of 40% on income over £37,400 £34,800
Dividends for: basic rate taxpayers
higher rate taxpayers
10%
32.5%
10%
32.5%
Trusts: standard rate band generally
dividends (rate applicable to trusts)
other income (rate applicable to trusts)
£1,000
32.5%
40%
£1,000
32.5%
40%
Pre-owned assets tax minimum taxable as income £5,000 £5,000

* Not available if taxable non-savings income exceeds starting rate band

Individual Savings Accounts (ISAs)

Maximum
Investment
Component
2009/10 2008/09
Cash £3,600 (£5,100*) £3,600
Stocks & shares (balance to) £7,200 (£10,200*) £7,200

*From 6 October 2009, higher limits apply only if born before 6 April 1960

Inheritance Tax

2009/10 2008/09
Nil-rate band* £325,000 £312,000
Rate of tax on excess 40% 40%
Lifetime transfers to and from certain trusts 20% 20%
Overseas domiciled spouse/civil partner exemption £55,000 £55,000
% relief: businesses, unlisted/AIM companies, certain farmland/buildings
% relief: certain other business assets

*Up to % of the unused proportion of a deceased spouse's/civil partner's nil-rate band can be claimed on the surviving spouse's/civil partner's death after 8 Oct 2007

Reduced tax charge on gifts within 7 years of death
Years before death 0-3 3-4 4-5 5-6 6-7
% of death tax charge 100 80 60 40 20
Annual exempt gifts £3,000 per donor £250 per donee

Main Capital and Other Allowances

Plant & machinery % annual investment allowance (first year) £50,000
Plant & machinery expenditure in excess of £50,000 (first year) 40%
Plant & machinery, patent rights, know-how (reducing balance) pa 20%
Certain long-life assets, integral features of buildings (reducing balance) pa 10%
Industrial & agricultural buildings (straight line) 2%
Energy & water- efficient investments 100%
Qualifying flat conversions & business premises renovations 100%
Research & Development:: capital expenditure 100%
revenue expenditure – small/medium-size firms
– large firms
175%
130%
Motor cars: Expenditure on or after 1/4/09 (Corporation Tax) or 6/4/09 (Income Tax)
CO 2 emissions of g/km: 110 or less 111–160 161 or more
100%
first year
20%
reducing balance
10%
reducing balance

Main Due Dates for Tax Payment

Income Tax and Capital Gains Tax – Self-Assessment
31 January in tax year } Normally % of previous year's income tax, less tax deducted at source
31 July following tax year
Following 31 January Balance of income tax and all CGT
Inheritance Tax
On death: Normally 6 months after month of death
Lifetime transfer 6 April-30 September: 30 April in following year
Lifetime transfer 1 October-5 April: 6 months after month of transfer
Corporation Tax
Self-Assessment: 9 months after end of accounting period
Payable by instalments where profits are £1.5m or over. Normally payable in 7th, 10th, 13th and 16th months after start of accounting period.
Growing companies: no instalments where profits are £10m or less and the company was not a large company for the previous year

Main Personal Allowances and Reliefs

2009/10 2008/09
Personal (basic) £6,475 £6,035
Personal (65-74) £9,490 £9,030
Personal (75 & over) £9,640 £9,180
Married couples/civil partners (minimum) at 10%* £2,670 £2,540
Married couples/civil partners (under 75) at 10%* N/A £6,535
Married couples/civil partners (75+) at 10% £6,965 £6,625
Age-related reliefs reduced by 50% of income over £22,900 £21,800
Blind persons £1,890 £1,800
Rent-a-room tax-free income £4,250 £4,250
Venture capital trust (VCT) at 30% £200,000 £200,000
Enterprise investment scheme (EIS) at 20% £500,000 £500,000
EIS eligible for capital gains tax re-investment relief No limit

* Where at least one spouse/civil partner was born before 6 April 1935

Non-domicile charge 2009/10 2008/09
Charge for adult non-UK domiciliary after UK residence in at least 7 of the previous 9 tax years: £30,000 £30,000

National Insurance Contributions

Class 1 Employees Not Contracted-Out of State Second Pension (S2P)
2009/10 2008/09
Employee Employer Employee Employer
NIC rate 11% 12.8% 11% 12.8%
No NICs on the first £110 pw £110 pw £105 pw £105 pw
NICs charged up to £844 pw No Limit £770 pw No Limit
1% NIC on earnings over £844 pw N/A £770 pw N/A
Certain married women 4.85% 12.8% 4.85% 12.8%
Class 1 Employees Contracted-out Rebate 2009/10 2008/09
Rebate on £95.01–£770 pw £90.01–£770 pw
Salary-related scheme 1.6% 3.7% 1.6% 3.7%
Money-purchase scheme 1.6% 1.4% 1.6% 1.4%
Personal Pension No reduction No reduction
Class 1A Employer 2008-10 on car fuel benefits and most other taxable benefits: 12.8%
Limits and Thresholds 2009/10 2008/09
Weekly Monthly Annual Weekly Monthly Annual
Lower earnings limit £95 £412 £4,940 £90 £390 £4,680
NICs start £110 £476 £5,715 £105 £453 £5,435
Upper accrual point £770 £3,337 £40,040 N/A N/A N/A
Upper earnings limit £844 £3,656 £43,875 £770 £3,337 £40,040
Self-employed 2009/10 2008/09
Class 2 Flat rate £2.40 pw   £124.80 pa £2.30 pw   £119.60 pa
if earnings over £5,075 pa £4,825 pa
Class 4* On profits £5,715 – £43,875 pa: 8% £5,435 – £40,040 pa: 8%
Over £43,875 pa: 1% Over £40,040 pa: 1%

* Unless over state pension age on 6 April

Voluntary 2009/10 2008/09
Class 3 Flat rate £12.05 pw  £626.60 pa £8.10 pw  £421.20 pa

Registered Pensions

2009/10 2008/09
Lifetime allowance* £1,750,000 £1,650,000
Annual allowance £245,000 £235,000
Special annual allowance where
relevant income is £150,000 or more
Min £20,000/
Max £30,000
N/A
N/A
Special annual allowance charge 20% N/A
Maximum pension commencement lump sum* 25% of pension benefit value
Maximum relievable personal contribution 100% of relevant UK earnings or
£3,600 if greater
Lifetime allowance charge if excess drawn as cash 55%
Lifetime allowance charge if excess drawn as income 25%
Annual allowance charge on excess 40%

* Subject to transitional protection for excess amount

Stamp Duty Land Tax based on consideration

Residential Commercial Rate
£175,000* or less £150,000 or less Nil
Over £175,000* up to £250,000 Over £150,000 up to £250,000 1%
Over £250,000 up to £500,000 Over £250,000 up to £500,000 3%
Over £500,000 Over £500,000 4%

* From 1/1/10: £125,000 (or £150,000 for property in disadvantaged areas)

Stamp Duty (including SDRT)
Stocks and marketable securities (no charge unless the duty exceeds £5) 0.5%

Tax-Free Mileage Allowance – Own Vehicle 2008–10

Cars Up to 10,000 business miles: 40p per business mile
Over 10,000 business miles: 25p per business mile
Motorcycles 24p per business mile
Bicycles 20p per business mile

Value Added Tax

Registration level from 1/5/09 £68,000
Standard rate from 1/12/08–31/12/09 15%
Standard rate from 1/1/10 17.5%
Reduced rate, eg on domestic fuel 5%
Flat rate scheme turnover limit £150,000
Cash and annual accounting turnover limit £1,350,000