Tax Facts 2009/10

Income tax rates, reliefs and tax credits

INCOME TAX RATES
2009/10 2008/9
Band £ Rate % Band £ Rate %
0 - 2,440 10* 0 - 2,230 10*
2,441 - 37,400 20** 2,321 - 34,800 22***
over 37,400* 40*** Over 34,800 40****

* Only applicable to dividends and savings income.
** Except dividends (10%).
*** Except dividends (32.5%).
Other income taxed first, then savings income and finally dividends.

INCOME TAX RELIEFS
  2009/10
£
2008/9
£
Personal Allowance under 65 6,475 6,035
65 to 74* 9,490 9,030
75 and over* 9,640 9,180
Married Couples allowance (relief at 10%) aged less than 75 and born
before 6.4.35**
n/a 6,535
75 and over* 6,965 6,625
min amount 2,670 2,540
Age allowance income limit*   22,900 21,800
Blind Persons Allowance   1,890 1,800

* As announced on 13 May 2008 and confirmed in the Finance Act.
**Reduce age allowance by £1 for every £2 of excess income over £22,900)

TAX CREDITS
  2009/10
£
2008/9
£
Working Tax Credit
   
Basic element - max
1,890 1,800
Childcare element - 80% of eligible costs up to £175 per week (£300 if two or more children)
   
     
Child Tax Credit (CTC)
   
Child element - per child - max
2,235 2,085
Family element
545 545
Baby addition
545 545
Reductions in maximum rates
39% of income above £6,420* p.a.39% (37%) of income above £6,420* (£5,220*) p.a.

*If only CTC is claimed, the threshold is £16,040 (£15,575) p.a. The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.

Disclaimer

The information in this tax card is based upon the 2009 Budget and other earlier announcements and may be subject to amendment by the Finance Act.

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Tax Facts 2009/10

Introduction

Income tax rates, reliefs and tax credits

Pension premiums and ISA's

Corporation tax, capital allowances and VAT

Capital gains, Inheritance, stamp duty and stamp duty land tax

National Insurance, Social security benefits

Car, van and fuel benefits and mileage allowances