|
|
|
 Allowances | 2009-10 | Change | 2010-11 | Personal allowance (age under 65) | £6,475 | - | £6,475 | Personal allowance (age 65-74) | £9,490 | - | £9,490 | Personal allowance (age 75 and over) | £9,640 | - | £9,640 | Married couple's allowance* (age 75 and over) | £6,965 | - | £6,965 | Married couple's allowance* (minimum amount) | £2,670 | - | £2,670 | Income limit for age related allowances | £22,900 | - | £22,900 | Blind person's allowance | £1,890 | - | £1,890 |
* Married couple's allowance is given at the rate of 10 per cent.
2009-10 | £ per year | 2010-11 | £ per year | Starting savings rate: 10%* | £0-£2,440 | Starting savings rate: 10%* | £0-£2,440 | Basic rate: 20% | £0-£37,400 | Basic rate: 20% | £0-£37,400 | Higher rate: 40% | Over £37,400 | Higher rate: 40% | £37,401-£150,000 | | | Additional rate: 50% | Over £150,000 |
*There is a 10p starting rate for savings
income only. If an individual's non savings taxable income exceeds the starting
rate limit, the 10p starting rate for savings will not be available for savings
income.
Higher rate of Income Tax to be frozen in 2012-13
The government has announced that the point
at which individuals start to pay the higher rate of Income Tax (known as the
higher rate threshold) will be frozen in 2012-13 at 2011-12 levels.
The upper earnings limit and the upper
profits limit for National Insurance will continue to be aligned with the
higher rate threshold. The personal allowance will be indexed in line with
inflation in 2012-13.
Additional higher rate of Income Tax from 2010
From April 2010 a new rate of Income Tax of
50 per cent will apply to income over £150,000. Also, the Income Tax Personal
Allowance will be reduced for those with incomes over £100,000, tapering down
to zero.
Information was taken from Direct Gov website, click on link for more information
Watch this space for updated information on Tax Issues when the new Government makes up its mind.
|
|
|
|
|
|
