| Income Tax Allowances |
| 2011/12 2010/11 |
| Personal allowance | £ | £ |
| General | 7,475 | 6,475 |
| Income limit | 100,000 | 100,000 |
| Aged 65 to 74 in tax year | 9,940 | 9,940 |
| Age allowance income limit | 24,000 | 22,900 |
| Minimum where income exceeds age limit (subject to general income limit) |
7,475 | 6,475 |
| Married couple’s allowance1 (relief at 10%) Either partner aged 75 or over in year of assessment age allowance income limit minimum where income exceeds limit |
7,295 24,000 2,800 |
6,965 22,900 2,670 |
| Blind person’s allowance | 1,980 | 1,890 |
| 1Available for civil partners. |
| Income Tax Rates |
| Taxable Income (£) | Rate (%) |
| 2011/12 0 – 35,000 |
20 |
| 35,001 – 150,000 | 40 |
| Over 150,000 | 50 |
| 2011/12 0 – 35,000 |
20 |
| 35,001 – 150,000 | 40 |
| Over 150,000 | 50 |
| Savings income is generally treated as the highest part of total income. A 10% starting rate, for savings income only, applies to the extent that such income falls within the first £2,560 of taxable income (£2,44o for 2010/11). If Savings income is generally treated as the highest part of total income. A 10% starting rate, for savings income only, applies to the extent that such income falls within the first £2,560 of taxable income (£2,44o for 2010/11). If taxable non-savings income exceeds this limit, the 10% rate does not apply. Income from dividends is taxed at 10% within the starting and basic rate bands, at 32.5% in the higher rate band and at 42.5% thereafter (these rates are applied to the dividend grossed-up by a tax credit of 1/9). |
| National Insurance Contributions |
| 2011/12 |
| Class 1 (earning related) | Not contracted out | Contracted Out |
| Employees Weekly earnings |
| First £139 | Nil | Nil |
| £139.01- £770 | 12% | 10.4% |
| £770.01- £817 | 12% | 12% |
| Over £817 | 2% | 2% |
| Employees Weekly earnings |
NCO | SRS | MPS |
| First £136 | Nil | Nil | Nil |
| £136.01- £770 | 13.8% | 10.1% | 12.4% |
| Employees’ rates are reduced to 5.85% for married women with valid certificates of election but the 2% rate above £817 still applies. Rates are nil for employees over state pensionable age. Normal employers’ contributions are still payable.Employers also receive a rebate of 3.7% for salary related schemes and 1.4% for money purchase schemes on earnings from £102 to £136 per week. A rebate of 1.6% on earnings from £102 to £139 per week is given to employees (or employers where insufficient contributions have been paid for offset).
Class 1A and Class 1B – 13.8% |
| Inheritance TaxTransfers after 5 April 2011 and before 6 April 2012 |
| Death Rates |
| Gross transfer | Rate % |
| Up to £325,000* | Nil |
| Over £325,000 | 40 |
| *Unused nil rate band is transferable to spouse or civil partner. Chargeable lifetime transfers are initially charged at 20%. Annual gifts of up to £3,000 per donor are exempt. |
| Capital Gains Tax |
| Annual exempt amounts 2011/12 Individuals, disabled trusts, personal representatives for year of death and two years thereafter |
£10,600 |
| Trusts generally | 5,300 |
| Rates 2011/12 Individuals |
| Standard rate | 18% |
| Higher rate | 28% |
| Trustees and personal representatives | 28% |
| Gains to which entrepreneurs’ relief applies | 10% |
| Corporation Tax |
| Financial Year to | 31/3/2012 | 31/3/2011 |
| Full rate | 26% | 28% |
| Small profits rate | 20% | 21% |
| 20%/21% rate limit | £300,000 | £300,000 |
| marginal relief limit | £1,500,000 | £1,500,000 |
| marginal relief fraction | 3/200 | 7/400 |
| effective marginal rate | 27.5% | 29.75% |
| Stamp Taxes |
| Shares and marketable securities | 0.5%1 |
| 1 Rounded up to the nearest multiple of £5. Transactions of value £1,000 or less exempt. |
| Transfers of land and buildings (consideration paid) |
| Residential2 | Non-residential | Rate |
| £125,000 or less | £150,000 or less | Nil |
| £125,001-£250,000 | £150,001-£250,000 | 1%3 |
| £250,001-£500,000 | £250,001-£500,000 | 3% |
| £500,001-£1,000,000 | Over £500,000 | 4% |
| Over £1,000,000 | N/A | 5% |
| Leases Rent (net present value) |
| Residential2 | Non-residential | Rate |
| Up to £125,000 | Up to £150,000 | Nil |
| Over £125,000 | Over £150,000 | 1% |
| 2 Different rates apply in designated disadvantaged areas 3 0% for first-time buyers of residential property before 25 March 2012 Premiums Duty on premiums is the same as for transfers of land (but special rules apply to non-residential property where rent exceeds £1,000 annually). |
| Car Benefit |
| CO2 emissions (2011/12) | % of list price |
| grams per km | Petrol | Diesel |
| 75 | 5 | 8 |
| 120 | 10 | 13 |
| 125 | 15 | 18 |
| 130 | 16 | 19 |
| 135 | 17 | 20 |
| 140 | 18 | 21 |
| 145 | 19 | 22 |
| 150 | 20 | 23 |
| 155 | 21 | 24 |
| 160 | 22 | 25 |
| 165 | 23 | 26 |
| 170 | 24 | 27 |
| 175 | 25 | 28 |
| 180 | 26 | 29 |
| 185 | 27 | 30 |
| 190 | 28 | 31 |
| 195 | 29 | 32 |
| 200 | 30 | 33 |
| 205 | 31 | 34 |
| 210 | 32 | 35 |
| 215 | 33 | 35 |
| 220 | 34 | 35 |
| 225 | 35 | 35 |
| No charge applies to cars incapable of producing CO2 engine emissions. |
| Car Fuel Benefit |
| For 2011/12, car fuel benefit is calculated by applying the above car benefit percentage to a figure of £18,800. |
| Tax-Free Mileage Allowances |
| Employee’s own vehicle |
| Motorcars and vans | 2011/12 |
| Up to 10,000 business miles | 45p |
| Over 10,000 business miles | 25p |
| Each passenger making same trip | 5p |
| Motorcycles | 24p |
| Cycles | 20p |
| Advisory fuel rates for company car from 1 March 2011 |
| Cylinder capacity | Petrol | Diesel | LPG |
| Up to 1,400 cc | 14p | 13p | 10p |
| 1,401 cc to 2,000 cc | 16p | 13p | 12p |
| Over 2,000 cc | 23p | 16p | 17p |
| Individual Savings Accounts |
| Overall | Cash |
| Limit | Limit |
| 2011/12 | £10,680 | £5,340 |
| 2010/11 | £10,200 | £5,100 |
| Venture Capital Schemes |
| Investment limit | Income tax relief rate |
| Enterprise investment Scheme | £500,000 | 30% |
| Venture capital trusts | £200,000 | 30% |
| Value Added Tax |
| Standard rate | 20% |
| Lower rate | 5% |
| Registration level from 1 April 2011 | £73,000pa |
| Deregistration limit from 1 April 2011 | £71,000pa |
| Registration level from 1 April 2011 |
| CO2 emissions grams per km |
Quarterly returns £ |
Monthly returns £ |
| 120 | 157 | 52 |
| 125 | 236 | 78 |
| 130 | 252 | 84 |
| 135 | 268 | 89 |
| 140 | 283 | 94 |
| 145 | 299 | 99 |
| 150 | 315 | 105 |
| 155 | 331 | 110 |
| 160 | 346 | 115 |
| 165 | 362 | 120 |
| 170 | 378 | 126 |
| 175 | 394 | 131 |
| 180 | 409 | 136 |
| 185 | 425 | 141 |
| 190 | 441 | 147 |
| 195 | 457 | 152 |
| 200 | 472 | 157 |
| 205 | 488 | 160 |
| 210 | 504 | 168 |
| 215 | 520 | 173 |
| 220 | 536 | 178 |
| 225 | 551 | 183 |
| Capital Allowances |
| Dredging (straight-line basis) Writing-down allowance |
Rate%4 |
| Business premises renovation Initial allowance* |
100 |
| Flat conversions Initial allowance* |
100 |
| *Writing-down allowance for unrelieved expenditure (straight-line basis) |
25 |
| Know-how (reducing balance basis) Writing-down allowance |
25 |
| Mineral extraction (reducing balance basis) Writing-down allowances General Acquisition of mineral asset |
25 10 |
| patent rights (reducing balance basis) Writing-down allowance |
25 |
| Plant and machinery (reducing balance basis) Annual investment allowance (max £100,000) First-year allowances Energy-saving or Environmentally beneficial assets New low-emission goods vehicles Writing-down allowances General Cars (expenditure incurred on or after 1/6 April 2009 where CO2 emissions exceed 160g/km) Special rate expenditure (including integral Features and thermal insulation) Long-life assets |
100100 100 100 20 10 10 |
| Research and development Allowance |
100 |
| Registered Pension Schemes |
| Individual contributions 2011/12 Maximum tax-relievable contributions are the higher of:
|
| Annual allowance | £50,000 |
| Lifetime allowance | £1,800,000 |
| Any unused annual allowance can be carried forward for up to three years. |
| Registered Pension Schemes |
| Annual amounts 2011/12 child tax credit |
£ |
| Family element | 545 |
| Child clement (for each child) | 2,555 |
| Addition for disabled child | 2,800 |
| Severe disabled child enhancement | 1,130 |
| Working tax credit |
| Basic element | 1,920 |
| Lone parent and couple element | 1,950 |
| 30-hour element | 790 |
| Disability element | 2,650 |
| Severe disability element | 1,130 |
| 50-plus return to work payment (16 to 29 hours) (30 or more hours) |
1,365 2,030 |
| Childcare element (up to 70% of costs) | Weekly |
| Maximum eligible cost (1 child) | 175 |
| Maximum eligible cost (2 or more) | 300 |
| Income thresholds |
| First income threshold | 6,420 |
| Eligible for child tax credit orly | 15,860 |
| First withdrawal rate | 41% |
| Second income threshold | 40,000 |
| Second withdrawal rate | 41% |
| Income disregard | 10,000 |