INCOME TAX RATES
| 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 £2,560 (£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
| 2011/12 | 2010/11 | |||
| £ | £ | |||
| Personal allowance | - under 65 | 7,475 | 6,475 | |
| - 65 - 74* | 9,940 | 9,490 | ||
| - 75 and over* | 10,090 | 9,640 | ||
| (Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.) | ||||
| Married couple’s allowance (relief at 10%)* | 7,295 | 6,965 | ||
| (Either partner 75 or over and born before 6 April 1935.) | ||||
| - min. amount | 2,800 | 2,670 | ||
| *Age allowance income limit | 24,000 | 22,900 | ||
| (Reduce age allowance by £1 for every £2 of adjusted net income over £24,000 (£22,900).) | ||||
| Blind person’s allowance | 1,980 | 1,890 | ||
PENSION PREMIUMS
2011/12
- Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.
- Any contributions in excess of £50,000 (£255,000), whether personal or by the employer, may be subject to income tax on the individual.
- Where the £50,000 limit is not fully used it may be possible to carry the unused amount forward for three years.
- Employers will obtain tax relief Employers will obtain tax relief are paid and made ‘wholly and exclusively’. Tax relief for large contributions may be spread over several years.
INDIVIDUAL SAVINGS ACCOUNTS (ISAs)
| 2011/12 | 2010/11 | |||
| £ | £ | |||
| Overall annual investment limit | 10,680 | 10,200 | ||
| Comprising | - cash up to | 5,340 max. | 5,100 max. | |
| - balance in stocks and shares | 10,680 max. | 10,200 max. | ||
CAR, VAN AND FUEL BENEFITS
| 2011/12 | ||
| CO2 emissions(gm/km)(round down to nearest 5gm/kg) | % of car's list price taxed | Company Cars |
| up to 125 | 15 | · A 5% rate applies to non-electric cars with emissions which do not exceed 75gm/km. |
| 130 | 16 | |
| 135 | 17 | · A 10% rate applies to non-electric cars with emissions which do not exceed 120gm/km. |
| 140 | 18 | |
| 145 | 19 | · The diesel supplement can apply to 75 and 120gm/km cars. |
| 150 | 20 | |
| 155 | 21 | · For cars registered before 1 January 1998 the charge is based on engine size. |
| 160 | 22 | |
| 165 | 23 | · The list price includes accessories and is not subject to an upper limit. |
| 170 | 24 | |
| 175 | 25 | · The list price is reduced for capital contributions made by the employee up to £5,000. |
| 180 | 26 | |
| 185 | 27 | Car fuel benefit 2011/12 |
| 190 | 28 | £18,800 x ‘appropriate percentage’* |
| 195 | 29 | *Percentage used to calculate the taxable benefit of the car for |
| 200 | 30 | which the fuel is provided. |
| 205 | 31 | The charge does not apply to certain environmentally |
| 210 | 32 | friendly cars. |
| 215 | 33 | The charge is proportionately reduced if provision of private |
| 220 | 34 | fuel ceases part way through the year. The fuel benefit is |
| 225 and above | 35 | reduced to nil only if the employee pays for all private fuel. |
| Van benefit per vehicle 2011/12 | ||
| Van Benefit £3,000 Fuel Benefit £550 | ||
| The charges do not apply to vans which cannot emit CO2 | ||
| when driven or if a ‘restricted private use condition’ is met | ||
| throughout the year. | ||
MILEAGE ALLOWANCE PAYMENTS
| 2011/12 Rate per mile | |
| Cars and vans | |
| 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.
CAPITAL GAINS TAX
| 2011/12 | 2010/11 | |
| Individuals | 23.6.10-5.4.11 | |
£ | £ | |
| Exemption | 10,600 | 10,100 |
| Standard rate | 18% | 18% |
| Higher rate* | 28% | 28% (18%) |
| Trusts | ||
| Exemption | 5,300 | 5,050 |
| Rate | 28% | 29% (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 chargedat 10%. Gains in excess of the limit are charged at the rates detailed above.
CORPORATION TAX
| Year to 31.3.12 | Year to 31.3.11 | |||
| Profits Band | Rate | Profits Band | Rate | |
| £ | % | £ | % | |
| Small profits rate | 0 - 300,000 | 20* | 0 - 300,000 | 21* |
| Marginal (small | 300,001 - 1,500,000 | 27.5* | 300,001 - 1,500,000 | 29.75* |
| profits rate) | ||||
| Main rate | Over 1,500,000 | 26* | Over 1,500,000 | 28* |
| Standard fraction | 3/200* | 7/400* | ||
The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.
STAMP DUTY
| Land and buildings (on full consideration paid) | |||
| Rate | Residential property* | Non-residential | |
| Disadvantaged Areas | Other | ||
| £ | £ | £ | |
| 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% | 500,001 - 1,000,000 | 500,001 - 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 2010and before 25 March 2012.
** For transactions with an effective date on or after 6 April 2011.
Shares and securities - rate 0.5%.
INHERITANCE TAX
| Death rate | Life rate | Chargeable transfers | ||
| 2011/12 and 2010/11 | ||||
| % | % | |||
| Nil | Nil | £0 - 325,000* | ||
| 40 | 20 | Over £325,000* | ||
*Potentially increased for surviving spouses or civil partners who die on or after 9 October 2007.
| Reliefs | |||||
| 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 |
NATIONAL INSURANCE
| 2011/12 Class 1 (employed) contracted in 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 £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 | |||
MAIN SOCIAL SECURITY BENEFITS
| Weekly benefit | 2011/12 | 2010/11 | ||
| Basic retirement pension | - single person | £102.15 | £97.65 | |
| - married couple | £163.35 | £156.15 | ||
| Statutory pay rates | - average weekly earnings £102 (£97) or over | |||
| Statutory Sick Pay | £81.60 | £79.15 | ||
| Statutory Maternity Pay | ||||
| First six weeks | 90% of weekly earnings | |||
| Next 33 weeks | £128.73* | £124.88* | ||
| Statutory Paternity Pay | - two weeks | £128.73* | £124.88* | |
| Statutory Adoption Pay | - 39 weeks | £128.73* | £124.88* | |
| *Or 90% of weekly earnings if lower. | ||||
| Additional Paternity Pay and Leave may be available for a child due or | ||||
| adoptions matched on or after 3 April 2011. | ||||
VALUE ADDED TAX
| 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 ALLOWANCES
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.
SELF ASSESSMENT: KEY DATES 2011/12
| 31 July 2011 | - Second payment on account for 2010/11 |
| 5 October 2011 | - Deadline for notifying HMRC of new sources of income if no tax return has been issued for 2010/11 |
| 31 October 2011 | - Deadline for submission of 2010/11 non-electronic returns |
| 31 January 2012 | - Deadline for filing electronic tax returns for 2010/11 - Balancing payment due for 2010/11. First payment on account due for 2011/12 |
