Personal Rates and Allowances (Nolan James)

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Personal Rates and Allowances

Income Tax

£ per year (unless stated)	2008-09	Change	2009-10
Income tax personal and age-related allowances
Personal allowance (age under 65)	£6,035	+£440	£6,435
Personal allowance (age 65-74)	£9,030	+£460	£9,490
Personal allowance (age 75 and over)	£9,180	+£460	£9,640
Married couple's allowance*(aged less than 75 and born before 6th April 1935)	£6,535	N/A	N/A
Married couple's allowance* (age 75 and over)	£6,625	+£340	£6,965
Married couple's allowance* - minimum amount	£2,540	+£130	£2,670
Income limit for age-related allowances	£21,800	+£1,100	£22,900
Blind person’s allowance	£1,800	+£90	£1,890
Capital gains tax annual exempt amount
Individuals etc.	£9,600	+£500	£10,100
Most trustees	£4,800	+£250	£5,050
Individual inheritance tax allowance	£312,000	+£13,000	£325,000
Pension schemes allowances
Annual Allowance	£235,000	+£10,000	£245,000
Lifetime Allowance	£1,650,000	+£100,000	£1,750,000

* Married couple's allowance is given at the rate of 10%.

Income tax: Taxable bands

	2008-09	2009-10
Savings starting rate*: 10%	£0-£2,320	£0-£2,440
Basic rate: 20%	£0-£34,800	£0-£37,400
Higher rate: 40%	Over £34,800	Over £37,400

* If an individual’s taxable non-savings income is above the savings starting rate limit then the 10% savings rate will not be applicable. There are no changes to the 10% dividend ordinary rate or the 32.5% dividend upper rate.

National Insurance Contributions

per week (unless stated)	2008-09	Change	2009-10
Lower earnings limit, primary Class 1	£90	+£5	£95
Upper earnings limit, primary Class 1	£770	+£74	£844
Upper Accruals point	N/A	N/A	£770
Primary threshold	£105	+£5	£110
Secondary threshold	£105	+£5	£110
Employees’ primary Class 1 rate between primary threshold and upper earnings limit	11%	-	11%
Employees’ primary Class 1 rate above upper earnings limit	1%	-	1%
Employees’ contracted-out rebate - salary-related schemes	1.6%	-	1.6%
Employees’ contracted-out rebate - money-purchase schemes	1.6%	-	1.6%
Married women’s reduced rate between primary threshold and upper earnings limit	4.85%	-	4.85%
Married women’s rate above upper earnings limit	1%	-	1%
Employers’ secondary Class 1 rate above secondary threshold	12.8%	-	12.8%
Employers’ contracted-out rebate, salary-related schemes	3.7%	-	3.7%
Employers’ contracted-out rebate, money-purchase schemes	1.4%	-	1.4%
Class 2 rate	£2.30	+£0.10	£2.40
Class 2 small earnings exception (per year)	£4,825	+£250	£5,075
• Special Class 2 rate for share fishermen	£2.95	+0.10	£3.05
Special Class 2 rate for volunteer development workers	£4.50	+£0.25	£4.75
Class 3 rate (per week)	£8.10	£3.95	£12.05
Class 4 lower profits limit (per year)	+£5,435	+£280	£5,715
Class 4 upper profits limit (per year)	£40,040	+£3,835	£43,875
Class 4 rate between lower profits limit and upper profits limit	8%	-	8%
Class 4 rate above upper profits limit	1%	-	1%

Working and child tax credits rates

£ per year (unless stated)	2008-09	Change	2009-10
Working Tax Credit
Basic element	£1,800	+£90	£1,890
Couple and lone parent element	£1,770	+£90	£1,860
30 hour element	£735	+£40	£775
Disabled worker element	£2,405	+£125	£2,530
Severe disability element	£1,020	+£55	£1,075
50+ Return to work payment (16-29 hours)	£1,235	+£65	£1,300
50+ Return to work payment (30+ hours)	£1,840	+£95	£1,935
Childcare element of the Working Tax Credit
Maximum eligible cost for one child	£175 per week	-	£175 per week
Maximum eligible cost for two or more children	£300 per week	-	£300 per week
Percentage of eligible costs covered	80%	-	80%
Child Tax Credit
Family element	£545	-	£545
Family element, baby addition	£545	-	£545
Child element	£2,085	+£150	£2,235
Disabled child element	£2,540	+£130	£2,670
Severely disabled child element	£1,020	+£55	£1,075
Income thresholds and withdrawal rates
First income threshold	£6,420	+£1,200	£6,420
First withdrawal rate	39%	-	39%
Second income threshold	£50,000	-	£50,000
Second withdrawal rate	6.67%	-	6.67%
First threshold for those entitled to Child Tax Credit only	£15,575	+£465	£16,040
Income disregard	£25,000	-	£25,000

PLEASE NOTE: The information contained on this page and other pages in this website is for general guidance only.
No responsibility is taken for action taken or refrained from in consequence of the contents of this website.

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