Personal and Employment Taxes 2009-10
Personal Allowances
|
| Personal allowance |
£6,475 |
| Aged 65-74 years |
£9,490 |
| Aged 75 years and over |
£9,640 |
From 2010-11, the amount of personal allowance will be gradually withdrawn for individuals (regardless of age), with “adjusted net incomes” above £100,000. The rate of reduction is £1 for every £2 over the income limit.
Personal Tax Rates
|
| Starting rate for savings only |
£0-2,440 |
10% |
| Basic Rate |
£0-37,400 |
20% |
| Higher Rate |
> £37,400 |
40% |
| Additional Rate |
> £150,000 |
50% |
All earnings above £43,875 therefore attract a rate of 40% tax.
Lower earnings level for state benefits and pension is £5,715 per annum.
Dividends
|
| Basic Rate |
£0-37,400 |
10% (*) |
| Higher Rate |
> £37,400 |
32.5% |
| Additional Rate |
> £150,000 |
42.5% |
(*) Note: Tax credit applies so that no additional tax is due.
Capital Gains
|
| Personal allowance |
£10,100 |
| Capital Gain tax rates |
18% or effective rate of 10% for businesses |
VAT
|
| VAT rate |
17.5% |
| Registration limit |
£68,000 |
| Deregistration limit |
£66,000 |
Limited Companies
|
| Small company rate |
21% |