Tax Allowances (July 2011)
The following tables show the main tax rates and allowances that individuals
and companies will encounter.
Income Tax Rates
| |
2010/11 |
2011/12 |
| Starting rate band |
* see below |
* see below |
| Basic rate band |
£37,400 |
£35,000 |
| Basic rate |
20% |
20% |
| Savings rate |
* see below |
- |
| Dividend ordinary rate |
10% |
10% |
| Higher rate - income over |
£37,400 |
£35,000 |
| Tax rate excluding dividends |
40% |
40% |
Dividend upper rate
|
32.5% |
32.5% |
| Additional rate - income over |
£150,000 |
£150,000 |
| Additional rate |
50% |
50% |
Dividend additional rate
|
42.5% |
42.5% |
* 10% starting rate for savings income up to £2,560. Not applicable if taxable non-savings income exceeds £2,560.
Personal allowances (ages are as at the end of the tax year)
| |
|
2010/11 |
2011/12 |
| Allowances that reduce taxable income |
|
£ |
£ |
| Personal Allowance |
under 65 |
6,475 |
7,475 |
| |
65 to 74* |
9,490 |
9,490 |
| |
75 & over* |
9,640 |
10,090 |
| Allowances that reduce tax |
|
|
|
| Married Couples Allowance (MCA) |
|
|
|
| --> age of elder partner: |
75 & over* |
696.50 |
729.50 |
| |
minimum |
267.00 |
280.00 |
* Higher allowances for those aged 65 or more are scaled back when income exceeds £24,000. 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 75gms/km |
5% |
8% |
| Emissions greater than 225gms/km |
35% |
35% |
| Van benefit per vehicle |
£3,000 |
£3,000 |
| Fuel |
|
|
| As above based on a cost ot £18,800 |
|
|
| Authorised Milage Rates 2011/12 |
First 10,000 miles |
> 10,000 miles |
| Car/van |
45p |
25p |
| Motorcyle |
24p |
24p |
| Bicycle |
20p |
20p
|
Capital Gains Tax
| |
2010/11 |
2011/12 |
| Individuals (exemption) |
£10,100 |
£10,600 |
| Gains before 23rd June 2010 |
18% |
- |
| Gains after 22nd June 2010 |
28% |
28% |
Entrepreneurs releif reduces this to 10% for qualifying sales.
Value Added Tax
| From: |
01/01/11 |
| Standard rate |
20% |
| VAT fraction |
1/6 |
Corporation Tax
| Financial year to |
31/03/11 |
31/03/12 |
| Taxable profits |
|
|
| First £300,000 |
21% |
20% |
| Next £1,200,000 |
29.75% |
27.5% |
| Over £1,500,000 |
28% |
26% |