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%
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