Chancellers Chartered Accountants : Budget 2010

Tax Tables

Tax Tables

Table A
Allowances and Reliefs

2010/11

2009/10

Allowed at top rate of tax

Personal Allowance

£6,475

Personal Allowance (65-74)*

9,490

Personal Allowance (75 and over)*

9,640

Blind Person's Allowance

1,890

Allowed only at 10%

Married Couple's Allowance (75 and over)*+

6,965

Income Limit for age-related allowances

22,900

+ only available if born before 6th April 1935.

* Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple's allowance. MCA is reduced to a minimum of £2,670 (2009/10: £2,670).

Personal allowances in 2010/11 will be withdrawn at £1 for every £2 by which total income exceeds £100,000.There will therefore be no allowances if income is £112,950 or more.

Bands

2010/11

2009/10

Starting (within basic rate band)*

£2,440

Basic

37,400

Higher

37,401 - 150,000

over 37,400

Additional

over 150,000

* There is a 10% starting rate for savings income only. If general taxable income exceeds the starting rate limit, the 10% rate is not available for savings income.

Rates differ for General, Savings and Dividend income within each band:

Rates	2010/11			2009/10
	G	S	D	G	S	D
Starting	N/A	10%	10%	N/A	10%	10%
Basic	20%	20%	10%	20%	20%	10%
Higher	40%	40%	32.5%	40%	40%	32.5%
Additional	50%	50%	42.5%	-	-	-
General income (salary, profit, rent) uses starting rate and basic rate bands before savings income (interest). Dividends are taxed as the 'top slice' of income.

Table B
Pension Contributions

The maximum annual tax efficient gross contributions (up to age 75) in 2010/11 are:

- individuals:		£3,600 or 100% of earnings to £255,000
- employers:		£255,000 less employee contributions

Maximum tax efficient fund (lifetime allowance) where benefits are taken in 2010/11: £1.8m.

Only current earnings count for the 100% limit. Where extra contributions exceeding £20,000 are paid by someone with total income over £130,000, there may be a clawback of pension relief in 2009/10 and 2010/11.

Table C
Benefits In Kind

Car Benefit Assessment 2010/11

Charge based on a percentage of the initial list price of the car; the percentage depends on the carbon dioxide emission ratings of the car, if it has one. For older cars without a rating, the percentage depends on engine capacity.

For 2010/11 the percentage for a petrol engine is 15% for ratings from 121g/km - 130g/km. The percentage increases by 1% for every complete 5g/km in excess of this (i.e. at 135,140 etc.), to a maximum of 35%. Diesel cars have 3% added to this figure, but still have a maximum percentage of 35%. In 2009/10 the 15% rate increased to 16% at 140g/km, so most benefit charges will increase by one percentage point.

Lower rates apply to cars with ratings up to 120g/km (10%/13%), 75g/km (5%/8%), or no emissions (no tax charge).

Car Fuel Assessment

The benefit is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £18,000 (2009/10: £16,900).

The taxable amount is therefore between £900 (5% - min.) and £6,300 (35% - max.).