Tax Rates 2009/10

Income Tax Rates

2009	/10	2008	/09
Band	Rate	Band	Rate
£	%	£	%
0-2,440	10*	0- 2,320	10*
2,441 - 37,400	20**	2,321 - 34,800	20**
Over 37,400	40***	Over 34,800	40***

* Only applicable to dividends and savings income
** Except dividends (10%)
*** Except dividends (32.5%)
Other income taxed first, then savings income and finally dividends

Income Tax Reliefs

		2009/10	2008/09
		£	£
Personal allowance	under 65	6,475	6,035
	65 - 74*	9,490	9,030
	75 and over*	9,640	9,180
Married couple's allowance	aged less than 75 and born before 6.4.35*	n/a	6,535
(relief at 10%)	75 and over*	6,965	6,625
	min. amount	2,670	2,540
* Age allowance income limit		22,900	21,800
(Reduce age allowance by £1 for every £2 of excess income over £22,900)
Blind person's allowance		1,890	1,800

Tax Credits

* If only CTC is claimed, the threshold is £16,040 (£15,575) p.a.  The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.

Pension Premiums

2009/10 and 2008/09
- Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings
- Employers will obtain tax relief on employer contributions if they are paid and made 'wholly and exclusively'.  Tax relief for large contributions may be spread over several years.
- Any contributions in excess of £245,000 (£235,000), whether personal or by the employer, may be subject to income tax on the individual at 40%.
- No carry back of pension contributions.

Car, Van and Fuel Benefits

CO2 emissions (gm/km) (round down to nearest 5gm/km)	% of car's list price taxed
up to 135	15
140	16
145	17
150	18
155	19
160	20
165	21
170	22
175	23
180	24
185	25
190	26
195	27
200	28
205	29
210	30
215	31
220	32
225	33
230	34
235 and above	35

2009/10 Company Cars
- For diesel cars add a 3% supplement but maximum still 35%.  Euro IV diesel cars registered before 1 January 2006 do not suffer he 3% supplement.
- Discounts apply to certain environmentally friendly cars.
- A 10% rate applies to non-electric cars with emmissions of no more than 120gm/km. 
- Environmentally friendly discounts do not apply to these cars but the diesel supplement does.
- For cars registered before 1 January 1998 the charge is based on engine size.
- The list price includes accessories and is subject to an upper limit of £80,000.
- The list price is reduced for capital contributions made by the employee up to £5,000.

Car fuel benefit 2009/10 and 2008/09
£16,900 x 'appropriate percentage'*
* percentage used to calculate the taxable benefit of the car for which the fuel is provided.  No change to this calculation was announced on Budget Day.

The charge is proportionally reduced if provision of private fuel ceases part way through the year.  The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Van benefit per vehicle 2009/10 and 2008/09
Van benefit £3,000
Fuel benefit £500

The charges will not apply if a 'restricted private use condition' is met throughout the year.

Mileage Allowance Payments

	2009/10 and 2008/09
Cars and Vans	Rate per mile
Up to 10,000 miles	40p
Over 10,000 miles	25p
Bicycles	20p
Motorcycles	24p

These rates represent the maximum tax free mileage allowances for employees using their own vehicles for business.  Any excess is taxable.  If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

Individual Savings Accounts (ISAs)

2009/10	£
Overall annual investment limit	7,200 (10,200*)
Comprising - cash up to	3,600 (5,100*) max
- balance in stocks and shares	7,200 (10,200*) max

* From 6 October 2009 for those aged 50 or over.

Corporation Tax

Years to 31.3.10 and 31.3.09

	Profit band	Rate
	£	%
Small companies rate	0-300,000	21*
Marginal (small companies) rate	300,000 - 1,500,000	29.75*
Full rate	Over 1,500,000	28*
Small companies fraction		7/400*

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.
* Different rates apply for ring fenced (broadly oil industry) profit.

Capital Allowances

Plant and machinery - Annual Investment Allowance (AIA)
The AIA applies to expenditure incurred on or after 6 April 2008 (1 April 2008 for companies.)  The AIA gives a 100% write off on most types of plant and machinery costs, including integral features and long life assets but not cars, of up to £50,000 p.a.

Any costs over the AIA fall into the normal capital allowance pools at either 10% or 20%.  The £50,000 limit may need to be shared between certain businesses under common ownership.

Other plant and machinery allowances
The annual rate of allowance if 20% from 6 April 2008 (1 April 2008 for companies.)  A 10% rate applies to expenditure incurred on integral features and on long life assets on or after 6 April 2008 (1 April 2008 for companies.)  Long life asset expenditure brought forward receives the 10% rate.

A temporary 40% first year allowance may be due for certain expenditure exceeding the AIA incurred in the 12 month period beginning on 6 April 2009 (1 April 2009 for companies.)  A 100% first year allowance may still be available on certain energy efficient plant and cars.

Cars
For expenditure incurred on cars on or after 6 April 2009 (1 April 2009 for companies), costs will generally be allocated to one of the two plant and machinery pools.  Cars with CO2 emissions not exceeding 160gm/km will receive a 20% allowance p.a.  Cars with CO2 emissions over 160 gm/km will receive a 10% allowance p.a.

Industrial and agricultural buildings and hotels
The annual rate of allowance is 2% (3%) from 6 April 2009 (1 April 2009) for companies.  Special rules apply for accounting periods straddling these dates.

Value Added Tax

Standard rate	17.5%*
Reduced rate	5%
Annual Registration Limit - from 1.5.09 (1.4.08 - 30.4.09 £67,000)	£68,000
Annual Deregistration Limit - from 1.5.09 (1.4.08 - 30.4.09 £65,000)	£66,000

* 15% from 1 December 2008 - 31 December 2009

Capital Gains Tax

	2009/10	2008/09
Individuals	£	£
Exemption	10,100	9,600
Balance of gains	18%	18%
Trusts
Exemption	5,050	4,800
Balance of gains	18%	18%
Entrepreneurs' Relief
For gains arising on or after 6 April 2008, the first £1m of qualifying gains are charged at an effective rate of 10%.  Gains in excess of £m are charged at 18%.

Inheritance Tax

National Insurance

Main Social Security Benefits

Self Assessment: Key Dates 2009/10

31 July 2009 - Second payment on account for 200/09.

5 October 2009 - Deadline for notifying HMRC of new sources of income if no tax return has been issued for 2008/09.

31 October 2009 - Deadline for submission of 2008/09 non-electronic returns.  Also, the deadline for submission of 2008/09 returns requiring HMRC calculation and where the taxpayer wants a balancing payment (below £2,000) collected through their 2010/11 PAYE code.

31 January 2010 - Deadline for filing electronic tax returns for 2008/09.  Balancing payment due for 2008/09.  First payment on account due for 2009/10.



This information is based upon the 2009 Budget and earlier announcements and may be subject to amendment by the Finance Act.