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 The Chancellor delivered his Pre-Budget Report 2009 to parliament at 12.30pm today. The tables below summarise his announcements. Some allowances have not yet been announced and this is indicated by N/A - not announced.
Income tax, capital gains tax, and inheritance tax
| per year |
2009-10 |
2010-11 |
| Income tax personal and age-related allowances |
| 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 |
| Capital gains tax annual exempt amount |
| Individuals etc. (not announced) |
£10,100 |
N/A |
| Most trustees (not announced) |
£5,050 |
N/A |
| Individual inheritance tax allowance |
£325,000 |
£325,000 |
| Pension schemes allowances |
| Annual Allowance |
£245,000 |
£255,000 |
| Lifetime Allowance |
£1,750,000 |
£1,800,000 |
* Married couple's allowance is given at the rate of 10%.
Income tax: Taxable bands
| |
2009-10 |
2010-11 |
| Savings starting rate*: 10% |
0 - £2,440 |
0 - £2,440 |
| Basic rate: 20% |
0 - £37,400 |
0 - £37,400 |
| Higher rate: 40% |
Over £37,400 |
£37,401 - £150,000 |
| Additional rate : 50% |
N/A |
Over £150,000 |
* only available if non savings income is less than this amount
Corporation tax on profits
| £ per year (unless stated otherwise) |
2009-10 |
2010-11 |
| £0-£300,000 |
21% |
21% |
| £300,001 - £1,500,000 |
Marginal rate |
Marginal rate |
| £1,500,001 or more |
28% |
28% |
The increase in the small company rate to 22% has been deferred until April 2011.
National insurance contributions
| per week (unless stated otherwise) |
2009-10 |
2010-11 |
| Lower earnings limit, primary Class 1 |
£95 |
£97 |
| Upper earnings limit, primary Class 1 |
£844 |
£844 |
| Upper Accruals point |
£770 |
£770 |
| Primary threshold |
£110 |
£110 |
| Secondary threshold |
£110 |
£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 |
£2.40 |
£2.40 |
| Class 2 small earnings exception (per year) |
£5,075 |
£5,075 |
| Special Class 2 rate for share fishermen |
£3.05 |
£3.05 |
| Special Class 2 rate for volunteer development workers |
£4.75 |
£4.85 |
| Class 3 rate (per week) |
£12.05 |
£12.05 |
| Class 4 lower profits limit (per year) |
£5,715 |
£5,715 |
| Class 4 upper profits limit (per year) |
£43,875 |
£43,875 |
| Class 4 rate between lower profits limit and upper profits limit |
8% |
8% |
| Class 4 rate above upper profits limit |
1% |
1% |
From April 2011 the proposed increase of 0.5% on both employee and employer National Insurance contributions has been increased to 1%. The threshold will rise correspondingly to eliminate the effect of the increase for those earning £20,000 or less per annum.
Working and child tax credits rates
| £ per year (unless stated otherwise) |
2009-10 |
2010-11 |
| Working Tax Credit |
| Basic element |
£1,890 |
£1,920 |
| Couple and lone parent element |
£1,860 |
£1,890 |
| 30 hour element |
£775 |
£790 |
| Disabled worker element |
£2,530 |
£2,570 |
| Severe disability element |
£1,075 |
£1,095 |
| 50+ Return to work payment (16-29 hours) |
£1,300 |
£1,320 |
| 50+ Return to work payment (30+ hours) |
£1,935 |
£1,965 |
| Childcare element of the Working Tax Credit |
| Maximum eligible cost for one child |
£175 pw |
£175 pw |
| Maximum eligible cost for two or more children |
£300 pw |
£300 pw |
| Percentage of eligible costs covered |
80% |
80% |
| Child Tax Credit |
| Family element |
£545 |
£545 |
| Family element, baby addition |
£545 |
£545 |
| Child element |
£2,235 |
£2,300 |
| Disabled child element |
£2,670 |
£2,715 |
| Severely disabled child element |
£1,075 |
£1,095 |
| Income thresholds and withdrawal rates |
| First income threshold |
£6,420 |
£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 |
£16,040 |
£16,190 |
| Income disregard |
£25,000 |
£25,000 |
Child benefit and guardian’s allowance rates 2010
| £ Per week |
2009-10 |
2010-11 |
| Eldest/Only Child (Jan 2009) |
£20.00 |
£20.30 |
| Other Children (Jan 2009) |
£13.20 |
£13.40 |
| Guardian’s Allowance (April 2009) |
£14.10 |
£14.30 |
Stamp taxes and duties
Transfers of land and buildings (consideration paid)
From 1 January 2010
| Rate |
Residential in disadvantaged areas & Non residential |
Residential outside disadvantaged areas |
| |
Total value of consideration |
| Zero |
£0 - £150,000 |
£0 - £125,000 |
| 1% |
Over £150,000 - £250,000
|
Over £125,000 - £250,000 |
| 3% |
Over £250,000 - £500,000 |
Over £250,000 - £500,000 |
| 4% |
Over £500,000 |
Over £500,000 |
Bingo Duty
Budget 2010 will reduce Bingo Duty from 22% to 20%
Landline Duty
A duty of 50p per month will be imposed on telephone landlines with effect from 1 October 2010. It is not yet clear whether VAT will be charged on the duty. The charge will apply to each line.
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