TAX RATES
Tax Rates: 2007-08 to 2009-10
Income tax, capital gains tax, and inheritance tax
| £ per year (unless stated) | 2010-11 | 2011-12 |
| Income tax personal and age-related allowances | ||
| Personal allowance (age under 65) | £6,475 | £7,475 |
| Personal allowance (age 65-74) | £9,490 | £9,940 |
| Personal allowance (age 75 and over) | £9,640 | £10,090 |
| Married couple's allowance* | ||
| Maximum Amount | £6,965 | £7,295 |
| Mnimum amount | £2,670 | £2,800 |
| Income limit for age-related allowances | £22,900 | £24,000 |
| Blind person’s allowance | £1,890 | £1,980 |
| Capital gains tax annual exempt amount | ||
| Individuals etc. | £10,100 | £10,600 |
| Most trustees | £5,050 | £5,300 |
| Individual inheritance tax allowance | £325,000 | £325,000 |
| Pension schemes allowances | ||
| Annual Allowance | £245,000 | £50,000 |
| Lifetime Allowance | £1,80,000 | £1,800,000 |
Income tax: Taxable bands
| 2011-12 | £ per year | 2010-11 | £ per year |
| Starting rate: 10% | £0-£2,560 | Starting rate: 10% | £0-£2,560 |
| Basic rate: 20% | £2,561-£35,000 | Basic rate: 20% | £0-£35,000 |
| Higher rate: 40% | Over £35,000 | Higher rate: 40% | Over £35,000 |
* There is a new 10% starting rate for savings income only, with a limit of £2,440. If an individual’s taxable non-savings income is above this limit then the 10% savings rate will not be applicable. There are no changes to the 10% dividend ordinary rate or the 32.5% dividend upper rate.
Corporation tax on profits
£ per year (unless stated) | 2010-11 | 2011-12 |
| £0-£300,000 | 21% | 20% |
| next £1,200,000 | 29.75% | 27.5% |
| Over £1,500,000 | 28% | 26% |
The main rate of corporation tax will be reduced to 2% for the financial year commencing 1 April 2012 and to 24% for the financial year commencing 1 April 2013.
National insurance contributions
£ per week (unless stated) | 2010-11 | 2011-12 |
| Lower earnings limit, primary Class 1 | £97 | £102 |
| Upper earnings limit, primary Class 1 | £844 | £817 |
| Primary threshold | £110 | £139 |
| Secondary threshold | £110 | £136 |
| Employees’ primary Class 1 rate between primary threshold and upper earnings limit | 11% | 12% |
| Employees’ primary Class 1 rate above upper earnings limit | 1% | 2% |
| Employees’ contracted-out rebate - salary-related schemes | 1.6% | 1.6% |
| Employees’ contracted-out rebate - money-purchase schemes | 1.6% | 1.6% |
| Married women’s reduced rate between primary threshold and upper earnings limit | 4.85% | 5.85% |
| Married women’s rate above upper earnings limit | 1% | 2% |
| Employers’ secondary Class 1 rate above secondary threshold | 12.8% | 13.8% |
| 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 | £2.40 | £2.50 |
| Class 2 small earnings exception (per year) | £5,075 | £5,315 |
| • Special Class 2 rate for share fishermen | £3.05 | £3.15 |
| Special Class 2 rate for volunteer development workers | £4.85 | £5.10 |
