Tax Allowances (April 2009)

The following tables show the main tax rates and allowances that individuals
and companies will encounter.

Income Tax Rates

  2008/09 2009/10
Starting rate band * see below * see below
Tax rate 10% -
Basic rate band £34,800 £37,400
Basic rate 20% 20%
Savings rate * see below -
Dividend ordinary rate 10% 10%
Higher rate - income over £36,000 £37,400
Tax rate excluding dividends 40% 40%
Dividend upper rate 32.5% 32.5%

* 10% starting rate for savings income up to £2,440. Not applicable if taxable non-savings income exceeds £2,440.

Personal allowances (ages are as at the end of the tax year)

  2008/09 2009/10
Allowances that reduce taxable income   £ £
Personal Allowance under 65 6,035 6,475
  65 to 74* 9,030 9,490
  75 & over* 9,180 9,460
  minimum 5,435 6,475
Allowances that reduce tax      
Married Couples Allowance (MCA)      
--> age of elder partner: 74* 653.50 n/a
  75 & over* 662.50 696.50
  minimum 254.00 267.00

* Higher allowances for those aged 65 or more are scaled back when income exceeds £22,900 (2008/09 £21,800). MCA is only available where are least one partner was born before 6 April 1935.

Car and Fuel Benefits

Business miles Petrol Diesel
Car charge based on % of list price when car was new    
Emissions less than 120gms/km 10% 13%
Emissions greater than 235gms/km 35% 35%
Van benefit per vehicle £3,000 £3,000
Fuel    
As above based on a cost ot £16,900    
Authorised Milage Rates 2009/10 First 10,000 miles > 10,000 miles
Car/van 40p 25p
Motorcyle 24p 24p
Bicycle 20p 20p

Capital Gains Tax

  2008/09 2009/10
Individuals (exemption) £9,600 £10,100

Value Added Tax

From: 01/12/08 01/01/10
Standard rate 15% 17.5%
VAT fraction 3/23 7/47

Corporation Tax

Financial year to 31/03/09 31/03/10
Taxable profits    
First £300,000 21% 21%
Next £1,200,000 29.75% 29.75%
Over £1,500,000 28% 28%
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