Income tax rates

Tax Data 2010 / 2011

INCOME TAX RATES

Income Tax - taxable bands	2010/11 (£)	2009/10 (£)
Starting rate: 10%:	-	-
Basic rate: 20%:	£0 - £37,400	£0 - £37,400
Higher rate: 40%	£37,400 - £150,000	£37,400 +
Additional Rate: 50%	£150,000 +

*for 2009/10 only applicable on savings income where it is below £2,440.00., and for 2010/11 below £2,440.00.

Dividends
Basic rate taxpayers	10%	10%
Higher rate taxpayers	32.5%	32.5%
Additional rate taxpayers	42.5%

Pre-owned assets tax (£5,000 taxable threshold)	As income	As income

Discretionary and Relevant Property Trusts*
Standard rate band	1,000	1,000
Dividends (rate applicable to trusts - RAT)	42.5%	32.5%
Other income (rate applicable to trusts - RAT)	50%	40%

*from 6/4/2008 A&M trusts can only be created by a parent's will, all other trusts will fall under the RPT regime.

Interest In Possession Trusts
UK Dividends	10%	10%
Savings, rent and trading	20%	20%

INCOME TAX RELIEFS




	2010/11 £	2009/10 £
Given at marginal rate of income tax
Personal allowance (minimum)	6,475	6,475
Personal allowance (age 65-74)	9,490	9,490
Personal allowance (age 75+)	9,640	9,640

Blind Person's Allowance	1,890	1,890

Rent-a-room tax free home income* *restricted to £2,125 if letting jointly	4,250	4,250

Relief restricted to 10%
Married couples/Civil partnerships allowance (age under 75 and born before 6th April 1935)	N/A	N/A
Married couples/Civil partnerships allowance (age 75+)	6,965	6,965
Married couples/Civil partnerships allowance (minimum)	2,670	2,670
Income limit for age-related allowances	22,900	22,900

Child Tax Credit (CTC)
Family element	545	545
Family element baby addition	545	545
Child element	2,300	2,235
Disabled child element	2,715	2,670
Severely disabled child element	1,095	1,075

Working Tax Credit (WTC)
Basic element	1,920	1,890
Couples & lone parent element	1,890	1,860
30 hour element	790	775
Disabled worker element	2,570	2,530
Severe disability element	1,095	1,075
50+ return to work payment (16-29 hours)	1,320	1,300
50+ return to work payment (30+ hours)	1,965	1,935

Childcare Element of WTC
Maximum eligible cost for one child	£175 per week	£175 per week
Maximum eligible cost for two or more children	£300 per week	£300 per week
Percentage of eligible costs covered	80%	80%

Withdrawal Rates for CTC & WTC
First income threshold	6,420	6,420
First income threshold for CTC only	16,190	16,040
First withdrawal rate	39%	39%
Second income threshold	50,000	50,000
Second withdrawal rate	6.67%	6.67%
Income increase disregarded	25,000	25,000

Limits for other reliefs
Enterprise Investment Scheme (EIS) at 20%
Maximum Investment	500,000	500,000
EIS capital gains re-investment	Unlimited	Unlimited

Venture Capital Trusts (VCT) @ 30%
Maximum Investment	200,000	200,000

For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.

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