Home I Taxation I Requirements I Audits I Work For Us I Contact Us
 
 
The rate of relief for the continuing married couple's allowance and maintenance...
Learn more
If you are self-employed, you could be operating either as a sole trader or ..
Learn more
Username:
Password:
Rates & Allowances

Rates and allowances set by HMRC for various types of tax are set out below.

Rates and Allowances – Income Tax

Income Tax Allowances 2011-12 (£) 2010-11 (£)
Personal allowance for people aged under 65 7,475 6,475
Personal allowance for people aged 65-74 9,940 9,490
Personal allowance for people aged 75 and over 10,090 9,640
Income limit for under 65 personal allowance 100,000 100,000
Income limit for age-related allowances 24,000 22,900
Married couple's allowance tax reduction - aged 73-74 Not Applicable Not Applicable
Married couple's allowance - aged 75 or more 7,295 6,965
Minimum married couple's allowance tax reduction 2,800 2,670
Blind person's allowance 1,980 1,890

The rate of relief for the continuing married couple's allowance and maintenance relief for people born before 6 April 1935, and for the children's tax credit, is 10%.

Taxable Bands

Taxable Bands Allowances 2011-12 (£) 2010-11 (£)
Starting rate 10% 0 - 2,560 0 - 2,440
Basic rate 20% 0 - 35,000 0 - 37,400
Higher rate 40% 35,001 - 150,000 37,401 - 150,000
Additional rate 50% Over 150,000 Over 150,000

The rate available for dividends for the 2009-10 tax year are the 10% ordinary rate and the 32.5% per dividend upper rate.
From the 2010-11 tax year, as well as these rates there is a new dividend additional rate of 42.5%.

Capital Gains Tax for Individuals and Trustees

Annual exempt amount 2011-12 (£) 2010-11 (£)
Individuals etc* 10,600 10,100
Other trustees 5,300 5,050

* Individuals, trustees of settlements for the disabled, and personal representatives of the estate of a deceased person.

Corporation Tax Levels on Profits

Profits - £ per year 2011-12 (%) 2010-11 (%)
£0–£300,000 21 21
£300,001–£1,500,000 27.5 29.75
£1,500,001 or more 28 28

Rates and Allowances - Inheritance Tax Threshold

Year Amount (£)
2010-11 325,000
2009-10 325,000
2008-09 312,000
2007-08 300,000
2006-07 285,000
2005-06 275,000
2004-05 263,000

Rates and Allowances - National Insurance Contributions

£ per week 2011-12 2010-11
Lower earnings limit, primary Class 1 £102 £97
Upper earnings limit, primary Class 1 £817 £844
Upper accmio
Upper accruals point £770 770
Primary threshold £139 £110
Secondary threshold £136 £110
Employees’ primary Class 1 rate between primary threshold and upper earnings limit 12% 11%
Employees’ primary Class 1 rate above upper earnings limit 2% 1%
Employees’ contracted-out rebate 1.6% 1.6%
Married women’s reduced rate between primary threshold and upper earnings limit 5.85% 4.85%
Married women’s rate above upper earnings limit 2% 1%
Employers’ secondary Class 1 rate above secondary threshold 13.8% 12.8%
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 £2.50 £2.40
Class 2 small earnings exception £5,315 per year £5,075 per year
Special Class 2 rate for share fishermen £3.15 £3.05
Special Class 2 rate for volunteer development workers £5.10 £4.85
Class 3 rate £12.60 £12.05
Class 4 lower profits limit £7,225 per year £5,715 per year
Class 4 upper profits limit £42,475 per year £43,875 per year
Class 4 rate between lower profits limit and upper profits limit 9% 8%
Class 4 rate above upper profits limit 2% 1%
Additional primary Class 1 percentage rate on deferred employments 2% 1%
Additional Class 4 percentage rate where deferment has been granted 2% 1%

Rates and Allowances - Tax Credits/Child Benefit

The rates and thresholds of the tax credits are shown below.

Working Tax Credit - £ per year (unless stated)

Rates and Thresholds 2011-12 (£) 2010-11 (£)
Basic element 1,920 1,920
Couple and lone parent element 1,950 1,890
30 hour element 790 790
Disabled worker element 2,650 2,570
Severe disability element 1,095 1,130
50+ Return to work payment (16-29 hours) 1,365 1,320
50+ Return to work payment (30+ hours) 2,030 1,965

Childcare element of the Working Tax Credit - £ per year (unless stated)

Rates and Thresholds 2011-12 2010-11
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 70% 80%
Child Tax Credit Family element £545 £545
Family element, baby addition Withdrawn £545
Child element £2,555 £2,300
Disabled child element £2,800 £2,715
Severely disabled child element £1,130 £1,095

Income thresholds and withdrawal rates - £ per year (unless stated)

Rates and Thresholds 2011-12 2010-11
First income threshold £6,420 £6,420
First withdrawal rate (per cent) 41% 39%
Second income threshold £40,000 £50,000
Second withdrawal rate (per cent) 41% 6.67%
First threshold for those entitled to Child Tax credit only £16,190 £15,860
Income disregard £10,000 £25,000

Child Benefit/Guardian Allowance - £ per week

Rates 2011-12 (£) 2010-11 (£)
Eldest/Only Child 20.30 20.30
Other Children 13.40 13.40
Guardian's Allowance 14.75 14.30
 
 
 
     
 
Home I Taxation I Requirements I Audits I Work For Us I Contact Us
© Carrington Blake Ltd 2011. All rights reserved.
101 Back Church Lane E1 1LU, UK | Tel: 0207 481 9495 | Fax: 0207 117 1645| Email: info@carringtonblake.com
Carrington Blake Accountancy Limited is a company registered in England and Wales with company number 06763788. VAT number 971002649.