Summer Budget 2010 Introduction Income Tax Tax Credits and Benefits National Insurance Contributions Employees Savings Capital Gains Tax Inheritance Tax Corporation Tax Business Tax Value Added Tax Insurance Premium Tax Other Measures Tax Tables National Insurance

Tax Tables Table A Allowances and Reliefs   2010/11 2009/10 Allowed at top rate of tax     Personal Allowance £6,475 £6,475 Personal Allowance (65-74)* 9,490 9,490 Personal Allowance (75 and over)* 9,640 9,640 Blind Person's Allowance 1,890 1,890   Allowed only at 10%     Married Couple's Allowance (75 and over)*+ 6,965 6,965 Income Limit for age-related allowances 22,900 22,900   + only available if born before 6th April 1935. * Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple's allowance. MCA is reduced to a minimum of £2,670 (2009/10: £2,670). Personal allowances in 2010/11 will be withdrawn at £1 for every £2 by which total income exceeds £100,000.There will therefore be no allowances if income is £112,950 or more.   Bands 2010/11 2009/10 Starting (within basic rate band)* £2,440 £2,440 Basic 37,400 37,400 Higher 37,401 - 150,000 over 37,400 Additional over 150,000 - * There is a 10% starting rate for savings income only. If general taxable income exceeds the starting rate limit, the 10% rate is not available for savings income.   Rates differ for General, Savings and Dividend income within each band: Rates 2010/11 2009/10   G S D G S D Starting N/A 10% 10% N/A 10% 10% Basic 20% 20% 10% 20% 20% 10% Higher 40% 40% 32.5% 40% 40% 32.5% Additional 50% 50% 42.5% - - - General income (salary, profit, rent) uses starting rate and basic rate bands before savings income (interest). Dividends are taxed as the 'top slice' of income.   Table B Pension Contributions   The maximum annual tax efficient gross contributions (up to age 75) in 2010/11 are: - individuals:   £3,600 or 100% of earnings to £255,000 - employers:   £255,000 less employee contributions Maximum tax efficient fund (lifetime allowance) where benefits are taken in 2010/11: £1.8m. Only current earnings count for the 100% limit. Where extra contributions exceeding £20,000 are paid by someone with total income over £130,000, there may be a clawback of pension relief in 2009/10 and 2010/11.   Table C Benefits In Kind   Car Benefit Assessment 2010/11 Charge based on a percentage of the initial list price of the car; the percentage depends on the carbon dioxide emission ratings of the car, if it has one. For older cars without a rating, the percentage depends on engine capacity. For 2010/11 the percentage for a petrol engine is 15% for ratings from 121g/km - 130g/km. The percentage increases by 1% for every complete 5g/km in excess of this (i.e. at 135,140 etc.), to a maximum of 35%. Diesel cars have 3% added to this figure, but still have a maximum percentage of 35%. In 2009/10 the 15% rate increased to 16% at 140g/km, so most benefit charges will increase by one percentage point. Lower rates apply to cars with ratings up to 120g/km (10%/13%), 75g/km (5%/8%), or no emissions (no tax charge).   Car Fuel Assessment The benefit is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £18,000 (2009/10: £16,900). The taxable amount is therefore between £900 (5% - min.) and £6,300 (35% - max.).