| |
2009-10 |
2008-09 |
| Starting rate band to |
*£2,440 |
£2,230 |
| Tax Rate |
*10% |
*10% |
| Basic rate band |
£37,000 |
£34,800 |
| Basic rate |
20% |
20% |
| Savings rate |
20% |
20% |
| Dividend ordinary rate |
10% |
10% |
| Higher Rate - income over |
£37,400 |
£34,800 |
| Higher Tax Rate |
40% |
40% |
| Dividend upper rate |
32.5% |
32.5% |
| *10% starting rate only available for savings income up to £2,440.(£2,320) to the extent that taxable non-savings income does not exceed £2,440 (£2,320). |
|
|
| Allowances that Reduce Taxable Income |
|
|
| Personal allowances (PA) |
|
|
| - under 65 |
£6,475 |
£6,035 |
| - 65 to 74 |
£9,490 |
£9,030 |
| - 75 and over |
£9,640 |
£9,180 |
| Allowances that Reduce Tax |
|
|
| Married couples allowance (MCA) |
|
|
| Tax reduction |
|
|
| - 74 |
n/a |
£628.50 |
| - 75 and over |
£696.50 |
£662.50 |
| |
|
|
| Ages are as at the end of the tax year. The age related allowances are progressively withdrawn if income exceeds |
£22,900 |
£21,800 |
| Minimum PA |
£6,475 |
£6,035 |
| Minimum MCA tax reduction |
£267 |
£254 |
| Tax Shelters |
|
|
| Enterprise Investment Scheme up to |
£500,000 |
£500,000 |
| Venture Capital Trust up to |
£200,000 |
£200,000 |
| Rent a room exempt on gross annual rent |
£4,250 |
£4,250 |
| Construction Industry Scheme deduction rate |
20/30% |
20/30% |
| ** start date subject to European Commission approval |
|
|