Rates & Allowances

Income Tax Allowances

	2008-09 (£)	2009-10 (£)
Personal allowance	6,035	6,475
Personal allowance for people aged 65-74 (1)	9,030	9,490
Personal allowance for people aged 75 and over (1)	9,180	9,640
Married couple's allowance (born before 6th April 1935 but aged under 75) (1) (2)(3)	6,535	n/a
Married couple's allowance - aged 75 and over (1) (2)	6,625	6,965
Income limit for age-related allowances	21,800	22,900
Minimum amount of married couple's allowance	2,540	2,670
Blind person's allowance	1,800	1,890

(1) - These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. They will never be less than the basic Personal allowance or minimum amount of Married Couple's allowance.
(2) - Tax relief for the Married Couple's allowance is given at the rate of 10 per cent.
(3) - In the 2009-10 tax year all Married Couple's Allowance claimants in this category will become 75 at some point during the year and will therefore be entitled to the higher amount of the allowance - for those aged 75 and over.

Tax Bands

	2008-09 (£)	2009-10 (£)
Starting rate for savings 10% *	0 - 2,320	0 - 2,440
Basic rate 20%	2,321 - 34,800	2,441 - 37,400
Higher rate 40%	over 34,800	over 37,400

* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.
The rates available for dividends are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate.

National Insurance - Rates and Allowances

£ per week	2008-09	2009-10
Lower earnings limit, primary Class 1	£90	£95
Upper earnings limit, primary Class 1	£770	£844
Upper accruals point	n/a	£770
Primary threshold	£105	£110
Secondary threshold	£105	£110
Employees' primary Class 1 rate between primary threshold and upper earnings limit	11%	11%
Employees' primary Class 1 rate above upper earnings limit	1%	1%
Employees' contracted-out rebate	1.6%	1.6%
Married women's reduced rate between primary threshold and upper earnings limit	4.85%	4.85%
Married women's rate above upper earnings limit	1%	1%
Employers' secondary Class 1 rate above secondary threshold	12.8%	12.8%
Employers' contracted-out rebate, salary-related schemes	3.7%	3.7%
Employers' contracted-out rebate, money-purchase schemes	1.4%	1.4%
Class 2 rate	£2.30	£2.40
Class 2 small earnings exception	£4,825 per year	£5,075 per year
Special Class 2 rate for share fishermen	£2.95	£3.05
Special Class 2 rate for volunteer development workers	£4.50	£4.75
Class 3 rate	£8.10	£12.05
Class 4 lower profits limit	£5,435 per year	£5,715 per year
Class 4 upper profits limit	£40,040 per year	£43,875 per year
Class 4 rate between lower profits limit and upper profits limit	8%	8%
Class 4 rate above upper profits limit	1%	1%

Class 1A NICs payable in July 2008 for benefits provided in the 2007-08 tax year are due at 12.8%

Capital Gains Tax: Individuals and Trustees

Annual exempt amount	2007-08 (£)	2008-09 (£)	2009-10 (£)
Individuals etc*	9,200	9,600	10,100
Other trustees	4,600	4,800	5,050

Inheritance Tax

Charges on or after 6th April 2009	Rates %	Charges between 6th April 2008 and 5th April 2009
0 - £325,000	NIL	0 - £312,000
Above £325,000	40%	Above £312,000

Corporation Tax

	Year to 31.3.2009	31.3.2010
Main rate	28%	28%
on Profits above	£1.5m	£1.5m

Small companies rate	21%	21%
on Profits between	£0 - £300k	£0 - £300k

Small/large marginal band	£300k - £1.5m	£300k - £1.5m
Fraction (effective rate)	7/400(29.75%)	7/400(29.75%)

VAT

Standard rate (3/23 of VAT-inclusive price)	15%
Registration level from 1.5.09	£68,000 per annum
Deregistration level from 1.5.09	£66,000 per annum
Standard rate rises to 17.5% on 1.1.10

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