TAX RATES TABLES 2011 / 2012


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Income Tax

Value Added Tax (VAT)

Corporation Tax

Inheritance Tax

Income Tax Reliefs

National Insurance

Individual Savings Accounts (ISAs)

Car/Van and Fuel Benefits

Tax Credits

Mileage Allowance Payments

Capital Gains Tax

Stamp Duty & Stamp Duty Land Tax

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Income Tax

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  2011/12

  2010/11

  Band £

  Rate %

  Band £

  Rate %

  0 - 2,560

  10*

  0 - 2,440

  10*

  0 - 35,000

  20**

  0 - 37,400

  20**

  35,001 - 150,000

  40***

  37,401 - 150'000

  40***

  Over 150,000

  50****

over 150'000

50****

*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,440.

** Except dividends (10%).

*** Except dividends (32.5%).

**** Except dividends (42.5%).

Other income taxed first, then savings income and finally dividends

 

Income Tax Reliefs

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2011/2012, GBP 

  Personal allowance

- under 65

7,475


- 65 - 74*

9,940


- 75 and over*

10,090

  (For 2010/11 reduce personal allowance by £1 for every £2 of adjusted

  net income over £100,000.)

  Married couple's allowance (relief at 10%)

- 75 and over*

7,295


- min. amount

2,800

  * Age allowance income limit

  (Reduce age allowance by £1 for every £2 of excess income

  over £22,900.)

24,000

  Blind person’s allowance


1,980

 

Tax Credits

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  2011/12, GBP

  2010/11, GBP

  Working Tax Credit



  Basic element - max.

  1,920

  1,920

  Childcare element

  80% of eligible costs up to £175 per week (£300 if two or more children).

  Child Tax Credit (CTC)

  Child element per child - max.

  2,555

  2,300

  Family element

  545

  545

  Baby addition

  -

  545

Reductions in maximum rates


41% (39%) of income above £6,420* p.a.

*If only CTC is claimed, the threshold is £15,860 (£16,190) p.a. The family element of CTC is not reduced unless income is more than £40,000 (£50,000) p.a. when the withdrawal rate is 41% (6.67%).


 

Car, Van and Fuel Benefits

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  Company cars 2011/12

  CO2 emissions (gm/km)

  (round down to nearest 5gm/km)

  % of car’s list price taxed

  up to 125

  15

  130

  16

  135

  17

  140

  18

  145

  19

  150

  20

  155

  21

  160

  22

  165

  23

  170

  24

  175

  25

  180

  26

  185

  27

  190

  28

  195

  29

  200

  30

  205

  31

  210

  32

  215

  33

  220

  34

  225 and above

  35

 

Mileage Allowance Payments

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  Cars and vans

2011/12

Rate per mile

  Up to 10,000 miles

  45p

  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)

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  2011/12

GBP

  Overall annual investment limit


  10,680

  Comprising

  - cash up to

  5,340 max.


  - balance in stocks and shares

  10,680 max.

 

Corporation Tax

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Years to 31.3.12


Profits band, GBP

Rate, %

  Small companies rate

0 - 300,000

20*

  Marginal (small companies) rate

300,001 - 1,500,000

27.5*

  Full rate

Over 1,500,000

26*

  Small companies fraction


3/200*

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.


Plant and machinery - Annual Investment Allowance (AIA)

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 £100,000 p.a. (£50,000 for expenditure incurred before 6 April 2010 (1 April 2010 for companies). Special rules apply for accounting periods straddling these dates.)

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

Other plant and machinery allowances

The annual rate of allowance is 20%. A 10% rate applies to expenditure incurred on integral features and on long life assets. A 100% first year allowance may be available on certain energy efficient plant and cars, including expenditure incurred on new and unused zero emission goods vehicles on or after 6 April 2010 (1 April 2010 for companies).

Cars

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

Industrial and agricultural buildings and hotels

The annual rate of allowance is nil (1%) from 6 April 2011 (1 April 2011 for companies). Special rules apply for accounting periods straddling these dates.

 

Value Added Tax (VAT)

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  Standard rate

  20%

  Reduced rate

  5%

  Annual Registration Limit - from 1.4.11 (1.4.10 - 31.3.11 £70,000)

  £73,000

  Annual Deregistration Limit - from 1.4.11 (1.4.10 - 31.3.11 £68,000)

  £71,000

 

Capital Gains Tax

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  2011/2012

  23 JUN 10 -

  5 APR 11

  Individuals

GBP

GBP

  Exemption

10,600

10,100

  Standard rate

18%

18%

  Higher rate*

28

28%

  Trusts



  Exemption

5,300

5,050

  Rate

28%

28% (18%)

*For higher and additional rate taxpayers


Entrepreneurs’ Relief 

For disposals on or after 6 April 2011 the first £10m (£5m for disposals on or after 23 June 2010 and before 6 April 2011) of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.

 

Inheritance Tax

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Death rate, %

Lifetime rate, %

Chargeable transfers

2011/12 and 2010/11

£’000

Nil

Nil

0 - 325*

40

20

Over 325*

*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.


Reliefs


  GBP



  GBP

  Annual exemption

  3,000

  Marriage

  - parent

  5,000

  Small gifts

  250


  - grandparent

  2,500




  - bride/groom

  2,500




  - other

  1,000

 

Reduced charge on gifts within seven years of death







Years before death

0-3

3-4

4-5

5-6

6-7

% of death charge

100

80

60

40

20

 

Stamp Duty & Stamp Duty Land Tax

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Land and buildings (on full consideration paid)

Rate

Residential property*

Non-residential


Disadvantaged areas,

GBP

Other,

GBP

GBP

Nil

0 - 150,000

0 - 125,000

0 - 150,000

1%*

150,001 - 250,000*

125,001 - 250,000*

150,001 - 250,000

3%

250,001 - 500,000

250,001 - 500,000

250,001 - 500,000

4%

500,000 - 1,000,000

500,000 - 1,000,000

Over 500,000

5%

Over 1,000,000**

Over 1,000,000**

-

* Relief available for first time buyers for transactions with an effective date on or after 25 March 2010 and before 25 March 2012.


Shares and securities - rate 0.5%.

 

National Insurance

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  Class 1 (employed) contracted in

2011/12 Rates

Employee

Employer

Earnings per week

%

Earnings per week

%

Up to £139

Nil*

Up to £136

Nil

£139.01 - £817

12

Over £136

13.8

Over £817

2



* Entitlement to contribution-based benefits retained for earnings between £102 and £139 per week

Class 1A (employers)

13.8% on employee taxable benefits

Class 1B (employers)

13.8% on PAYE Settlement Agreements

Class 2 (self-employed)

flat rate per week £2.50

small earnings exception p.a. £5.315 p.a.

Class 3 (voluntary)

flat rate per week £12.60

Class 4 (self-employed)

9% on profits between £7,225 and £42,475 plus 2% on profits over £42,475