Home > > 2009 Pre-Budget Report > 2010/11 Tax rates and allowances

2010/11 Tax rates and allowances

Tax rates	2010/11
Savings starting rate band to	£2,440
Savings starting rate tax	10%
Basic rate band	£37,400
Basic tax rate	20%
Higher rate band	£37,401 - £150,000
Higher tax rate	40%
Additional tax rate band - over	£150,000
Additional tax rate	50%
Tax on UK dividends within basic rate band	10%
Tax on UK dividends within higher rate band	32.5%
Tax on UK dividends within additional rate band	42.5%
Trusts:
Trust rate	50%
Allowances that reduce taxable income:
Personal allowances:
Age under 65	£6,475
Age 65-74	£9,490
Age 75 and over	£9,640
Blind person's allowance	£1,890
Allowances that reduce tax:
Married couple's allowance (MCA):
Age 75 and over	£6,965
Age 75 and over - minimum amount	£2,670
The age-related allowances are progressively withdrawn if income exceeds	£22,900
Minimum Personal Allowance	£6,475
Minimum MCA tax reduction	£267

Non domicile charge:
Charge for adult non domiciliary applies after UK residence in 7 or more of the previous 9 years	£30,000

2010/11 National Insurance

£ per week (unless stated)
Class 1:
Lower earnings limit, primary Class 1	£97
Upper earnings limit, primary Class 1	£844
Upper accruals point	£770
Primary threshold	£110
Secondary threshold	£110
Employees' primary Class 1 rate between primary threshold and upper earnings limit	11%
Employees' primary Class 1 rate above upper earnings limit	1%
Employees' contracted-out rebate - salary related schemes	1.6%
Employees' contracted-out rebate - money purchase schemes	1.6%
Married women's reduced rate between primary threshold and upper earnings limit	4.85%
Married women's rate above upper earnings limit	1%
Employers' secondary Class 1 rate above secondary threshold	12.8%
Employers' contracted out rebate, salary-related schemes	3.7%
Employers' contracted out rebate, money-purchase schemes	1.4%
Class 2 rate	£2.40
Class 2 small earnings exception (per year)	£5,075
Special class 2 for share fishermen	£3.05
Class 3 rate	£12.05
Class 4 lower profits limit (per year)	£5,715
Class 4 upper profits limit (per year)	£43,875
Class 4 rate between lower profits limit and upper profits limit	8%
Class 4 rate above upper profits limit	1%

Working Tax Credit
Basic element	£1,920
Couple and lone parent element	£1,890
30 hour element	£790
Disabled worker element	£2,570
50+Return to work payment (16-29 hours)	£1,320
50+ Return to work payment (30+ hours)	£1,965

Childcare element of the working tax credit
Maximum eligible cost for one child	£175 per week
Maximum eligible cost for two or more children	£300 per week
Percentage of eligible costs covered	80%
Child Tax Credit
Family element	£545
Family element, baby addition	£545
Child element	£2,300
Disabled child element	£2,715
Severely disabled child element	£1,095

Income thresholds and withdrawal rates
First income threshold	£6,420
First withdrawal rate	39%
Second income threshold	£50,000
Second withdrawal rate	6.67%
First threshold for those entitled to Child Tax Credit only	£16,190
Income disregard	£25,000

Child benefit rates (from April 2010)
Eldest/only child	£20.30
Other children	£13.40
Guardian's allowance	£14.30

Band and distance of capital city of destination country in miles from London	In the lowest class of travel (reduced rate)		In other than the lowest class of travel (standard rate)
Band A (0-2000)	£11	£12	£22	£24
Band B (2001-4000)	£45	£60	£90	£120
Band C (4001-6000)	£50	£75	£100	£150
Band D over 6000	£55	£85	£110	£170