Tax Rates

Tax rates		Note	2009/10	2008/09
Savings starting rate band to			£2,440	£2,320
Savings starting tax band rate			10%	10%
Basic rate band to		4	£37,400	£34,800
Basic tax rate			20%	20%
Higher rate - taxable income over		4	£37,400	£34,800
Higher tax rate			40%	40%
UK dividend rate			32.5%	32.5%
Trusts
Trust rate			40%	40%
Schedule F trust rate			32.5%	32.5%
Allowances that reduce taxable income
Personal allowance (PA)	under 65	1,4	£6,475	£6,035
	65 to 74	1,3	£9,490	£9,030
	75 and over	1,3	£9,640	£9,180
	Blind person's allowance		£1,890	£1,800
Allowances that reduce tax
Married couple's allowance (MCA)
	75 and over	1,2,3	£696.50	£662.50
The age-related allowances are progressively withdrawn if income exceeds			£22,900	£21,800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
Non domicile charge Charge for adult non UK domiciliary - applies after UK residence in seven or more of the previous tax years			£30,000	£30,000
Tax Shelters
Enterprise Investment Scheme (EIS) up to			£500,000	£500,000
Maximum amount for EIS carry back			£50,000	£50,000
Venture Capital Trust (VCT) up to			£200,000	£200,000
Golden handshake max.			£30,000	£30,000
Rent a room - exempt on gross annual rent up to			£4,250	£4,250
Construction Industry Scheme - deduction rate
Standard rate - registered			20%	20%
Higher rate - not registered			30%	30%

Tax rates		Note	2009/10	2008/09
Savings starting rate band to			£2,440	£2,320
Savings starting tax band rate			10%	10%
Basic rate band to		4	£37,400	£34,800
Basic tax rate			20%	20%
Higher rate - taxable income over		4	£37,400	£34,800
Higher tax rate			40%	40%
UK dividend rate			32.5%	32.5%
Trusts
Trust rate			40%	40%
Schedule F trust rate			32.5%	32.5%
Allowances that reduce taxable income
Personal allowance (PA)	under 65	1,4	£6,475	£6,035
	65 to 74	1,3	£9,490	£9,030
	75 and over	1,3	£9,640	£9,180
	Blind person's allowance		£1,890	£1,800
Allowances that reduce tax
Married couple's allowance (MCA)
	75 and over	1,2,3	£696.50	£662.50
The age-related allowances are progressively withdrawn if income exceeds			£22,900	£21,800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
Non domicile charge Charge for adult non UK domiciliary - applies after UK residence in seven or more of the previous tax years			£30,000	£30,000
Tax Shelters
Enterprise Investment Scheme (EIS) up to			£500,000	£500,000
Maximum amount for EIS carry back			£50,000	£50,000
Venture Capital Trust (VCT) up to			£200,000	£200,000
Golden handshake max.			£30,000	£30,000
Rent a room - exempt on gross annual rent up to			£4,250	£4,250
Construction Industry Scheme - deduction rate
Standard rate - registered			20%	20%
Higher rate - not registered			30%	30%