Tax Rates & Tables    
*
 Mileage Allowance Payments
*
 ISAs
*
Capital allowances
*
 National insurance
*
 Capital gains tax
*
 Pension premiums
*
 Car & fuel benefits
*
 Social security benefits
*
 Corporation tax
*
 Stamp duty
*
 Income tax rates
*
 Tax Credits
*
Income tax reliefs
*
 VAT
*
 Inheritance tax
*
 VAT Fuel Scale Charges


 

Inheritance Tax:

Mileage Allowance Payments

Cars and vans

2011/12
Rate per mile
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 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 (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.

 

Capital Gains Tax:


2011/12

2010/11
    23.6.10 - 5.4.11
Individuals
£
£
Exemption
10,600
10,100
Standard rate
18%
18%
Higher rate*
28%
28% (18%)
Trusts
 
 
Exemption
5,300
5,050
Rate
18%
28% (18%)
*For higher and additional rate taxpayers

Entrepreneurs' Relief
For disposals on or after 6 April 2011 the first £10m (£5m for disposals on/after 23 June 2010 and before 6 April 2011) of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.

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Car & Fuel Benefits:


Company cars 2011/12
CO2 emissions (gm/km)
(round down to nearest 5gm/km)		 % of car's list price taxed
up to 125 15
130 16
135 17
140 18
145 19
150 20
155 21
160 22
165 23
170 24
175 25
180 26
185 27
190 28
195 29
200 30
205 31
210 32
215 33
220 34
225 and above 35

Company cars

  • For diesel cars add a 3% supplement but maximum still 35%.
  • A 0% rate applies to cars which cannot emit CO2 when driven.
  • A 5% rate applies to non-electric cars with emissions which do not exceed 75gm/km.
  • A 10% rate applies to non-electric cars with emissions of no more than 120gm/km.
  • The diesel supplement can apply to 75 and 120 gm/km cars.
  • For cars registered before 1 January 1998 the charge is based on engine size.
  • The list price includes accessories and is not subject to an upper limit.
  • The list price is reduced for capital contributions made by the employee up to £5,000.

Car fuel benefit 2011/12

£18,800 x 'appropriate percentage'*

*Percentage used to calculate the taxable benefit of the car for which the fuel is provided.

The charge does not apply to certain environmentally friendly cars.

The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is 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.

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Corporation Tax:

Year to 31.3.12

  

Year to 31.3.11
  Profits band
£		 Rate
%		   Profits band
£		 Rate
%
Small companies rate 0 - 300,000 20*   0 - 300,000 21*
Marginal (small companies) rate 300,001 - 1,500,000 27.5*   300,001 - 1,500,000 29.75*
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.

*Different rates apply for ring-fenced (broadly oil industry) profit.

 

 

 

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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%) - 75 and over* 7,295 6,965
  - min. amount 2,800 2,670
* Age allowance income limit
(Reduce age allowance by £1 for every £2 of excess income over £24,000 (£22,900))		 24,000 22,900
Blind person's allowance   1,980 1,890

 

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Inheritance Tax:

Death
rate
%
Lifetime
rate
%
Chargeable transfers
2011/12 and 2010/11
£'000
Nil
Nil
0 - 325*
40
20
Over 325*

*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

Return to top
   
Chargeable Transfers
Death Rate
%
Lifetime Rate
%
2009/10
£’000
2008/09
£’000
Nil
Nil
0 - 325*
0 - 312*
40
20
Over 325*
Over 312*
*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

 

Inheritance Tax:

Mileage Allowance Payments

Cars and vans

2011/12
Rate per mile
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 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 (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.

 

Capital Gains Tax:


2011/12

2010/11
    23.6.10 - 5.4.11
Individuals
£
£
Exemption
10,600
10,100
Standard rate
18%
18%
Higher rate*
28%
28% (18%)
Trusts
 
 
Exemption
5,300
5,050
Rate
18%
28% (18%)
*For higher and additional rate taxpayers

Entrepreneurs' Relief
For disposals on or after 6 April 2011 the first £10m (£5m for disposals on/after 23 June 2010 and before 6 April 2011) of qualifying gains are charged at 10%. Gains in excess of the limit are charged at the rates detailed above.

Return to top

 

Car & Fuel Benefits:


Company cars 2011/12
CO2 emissions (gm/km)
(round down to nearest 5gm/km)		 % of car's list price taxed
up to 125 15
130 16
135 17
140 18
145 19
150 20
155 21
160 22
165 23
170 24
175 25
180 26
185 27
190 28
195 29
200 30
205 31
210 32
215 33
220 34
225 and above 35

Company cars

  • For diesel cars add a 3% supplement but maximum still 35%.
  • A 0% rate applies to cars which cannot emit CO2 when driven.
  • A 5% rate applies to non-electric cars with emissions which do not exceed 75gm/km.
  • A 10% rate applies to non-electric cars with emissions of no more than 120gm/km.
  • The diesel supplement can apply to 75 and 120 gm/km cars.
  • For cars registered before 1 January 1998 the charge is based on engine size.
  • The list price includes accessories and is not subject to an upper limit.
  • The list price is reduced for capital contributions made by the employee up to £5,000.

Car fuel benefit 2011/12

£18,800 x 'appropriate percentage'*

*Percentage used to calculate the taxable benefit of the car for which the fuel is provided.

The charge does not apply to certain environmentally friendly cars.

The charge is proportionately reduced if provision of private fuel ceases part way through the year. The fuel benefit is 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.

Return to top

 

Corporation Tax:

Year to 31.3.12

  

Year to 31.3.11
  Profits band
£		 Rate
%		   Profits band
£		 Rate
%
Small companies rate 0 - 300,000 20*   0 - 300,000 21*
Marginal (small companies) rate 300,001 - 1,500,000 27.5*   300,001 - 1,500,000 29.75*
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.

*Different rates apply for ring-fenced (broadly oil industry) profit.

 

 

 

Return to top

 

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%) - 75 and over* 7,295 6,965
  - min. amount 2,800 2,670
* Age allowance income limit
(Reduce age allowance by £1 for every £2 of excess income over £24,000 (£22,900))		 24,000 22,900
Blind person's allowance   1,980 1,890

 

Return to top

Inheritance Tax:

Death
rate
%
Lifetime
rate
%
Chargeable transfers
2011/12 and 2010/11
£'000
Nil
Nil
0 - 325*
40
20
Over 325*

*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

Return to top
   
Chargeable Transfers
Death Rate
%
Lifetime Rate
%
2009/10
£’000
2008/09
£’000
Nil
Nil
0 - 325*
0 - 312*
40
20
Over 325*
Over 312*
*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