BALPA Financial Solutions Ltd
Tax Tables 2010-11 (updated 24/06/10)
Income Tax, Capital Gains Tax, & Inheritance Tax
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£ per year (unless stated)
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2009-10
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2010-11
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Income tax personal and age-related allowances
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Personal allowance (age under 65) #
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£6,475
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£6,475
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Personal allowance (age 65-74)
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£9,490
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£9,490
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Personal allowance (age 75 and over)
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£9,640
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£9,640
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Married couple's allowance* (age 75 and over)
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£6,965
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£6,965
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Married couple's allowance* - minimum amount
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£2,670
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£2,670
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Income limit for age-related allowances ##
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£22,900
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£22,900
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Blind person’s allowance
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£1,890
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£1,890
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Capital gains tax annual exempt amount
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Individuals etc **
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£10,100
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£10,100
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Most trustees
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£5,050
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£5,050
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Inheritance tax threshold
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Individuals
(threshold frozen for the tax years 2011/12 – 2014/15)
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£325,000
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£325,000
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Pension schemes allowances
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Annual Allowance
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£245,000
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£255,000
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Lifetime Allowance
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£1,750,000
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£1,800,000
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* Married couple's allowance is given at the rate of 10 per cent.
** The effective rate of CGT for gains qualifying for “entrepreneurs’’ relief remains 10%. For disposals on or after 23/06/10 the lifetime limit for gains qualifying for “entrepreneurs’’ relief increased from £2 million to £5 million, and any excess is charged at the appropriate rate as above.
# Personal allowance reduces by £1 for every £2 of taxable income between £100,000 - £112,950.
## Age related allowances reduce by £1 for every £2 of taxable income above the threshold.
Income tax: taxable bands
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£ per year
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2009-10
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2010-11
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Starting rate*: 10%
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£0-£2,440
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£0-£2,440
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Standard / Basic rate: 20%
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£0-£37,400
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£0-£37,400
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Higher rate: 40%
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Over £37,400
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£37,400-£150,000
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Additional rate: 50%
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n/a
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Over £150,000
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* Only available if non savings income is less than this. Dividend income is taxed at 10% (income up to the basic rate) and 32.5% (higher rate) or 42.5% (additional rate).
Capital Gains tax: Rates
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£ per year (unless stated)
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2009-10
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2010-11
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Flat rate of CGT (on disposals made prior to 23/06/10)
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18%
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18%
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CGT for disposals on or after 23/06/10
for individuals whose total income & capital gains (net of losses & exemption) is within the basic rate income tax limits.
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n/a
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18%
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CGT for disposals on or after 23/06/10
for individuals whose total income & capital gains (net of losses & exemption) exceeds the basic rate income tax limits.
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n/a
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28%
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Entrepreneurs Relief fraction
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4/9ths
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4/9ths
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Net rate for Entrepreneurs **
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10%
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10%
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** The effective rate of CGT for gains qualifying for “entrepreneurs’’ relief remains 10%. With effect from the 23/06/10 the lifetime limit for gains qualifying for “entrepreneurs’’ relief increased from £2 million to £5 million, and any excess is charged at the appropriate rate as above.
Corporation tax on profits
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£ per year (unless stated)
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2009-10
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2010-11
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Small Companies Rate £1-£300,000*
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21%
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21%
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Marginal relief applies £300,001 - £1,500,000
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Marginal Relief
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Marginal Relief
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Main Rate £1,500,001 or more
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28%
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28%
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A company’s capital gains are charged to tax at its Corporation Tax rate.
* The small companies’ rate applies to the first £300,000 of profits (whether retained or distributed as dividends). The increase in the small company rate to 22% has been deferred until April 2011.
National insurance contributions
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per week (unless stated)
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2009-10
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2010-11
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Lower earnings limit, primary Class 1
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£95
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£97
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Upper earnings limit, primary Class 1
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£844
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£844
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Upper Accruals point
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£770
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£770
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Primary threshold
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£110
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£110
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Secondary threshold
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£110
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£110
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Employees’ primary Class 1 rate between primary threshold and upper earnings limit
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11%
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11%
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Employees’ primary Class 1 rate above upper earnings limit
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1%
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1%
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Employees’ contracted-out rebate - salary-related schemes
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1.6%
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1.6%
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Employees’ contracted-out rebate - money-purchase schemes
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1.6%
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1.6%
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Married women’s reduced rate between primary threshold and upper earnings limit
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4.85%
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4.85%
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Married women’s rate above upper earnings limit
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1%
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1%
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Employers’ secondary Class 1 rate above secondary threshold
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12.8%
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12.8%
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Employers’ contracted-out rebate, salary-related schemes
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3.7%
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3.7%
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Employers’ contracted-out rebate, money-purchase schemes
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1.4%
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1.4%
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Class 2 rate
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£2.40
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£2.40
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Class 2 small earnings exception (per year)
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£5,075
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£5,075
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Special Class 2 rate for share fishermen
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£3.05
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£3.05
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Special Class 2 rate for volunteer development workers
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£4.75
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£4.85
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Class 3 rate (per week)
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£12.05
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£12.05
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Class 4 lower profits limit (per year)
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£5,715
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£5,715
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Class 4 upper profits limit (per year)
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£43,875
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£43,875
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Class 4 rate between lower profits limit and upper profits limit
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8%
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8%
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Class 4 rate above upper profits limit
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1%
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1%
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From April 2011 the proposed increase of 0.5% on both employee and employer National Insurance contributions has been increased to 1%. The threshold will rise correspondingly to eliminate the effect of the increase for those earning £20,000 or less per annum.
Working and child tax credits rates
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£ per year (unless stated)
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2009-10
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2010-11
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Working Tax Credit
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Basic element
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£1,890
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£1,920
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Couple and lone parent element
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£1,860
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£1,890
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30 hour element
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£775
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£790
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Disabled worker element
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£2,530
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£2,570
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Severe disability element
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£1,075
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£1,095
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50+ Return to work payment (16-29 hours)
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£1,300
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£1,320
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50+ Return to work payment (30+ hours)
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£1,935
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£1,965
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Childcare element of the Working Tax Credit
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Maximum eligible cost for one child
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£175 pw
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£175 pw
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Maximum eligible cost for two or more children
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£300 pw
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£300 pw
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Percentage of eligible costs covered
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80%
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80%
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Child Tax Credit
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Family element
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£545
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£545
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Family element, baby addition
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£545
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£545
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Child element
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£2,235
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£2,300
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Disabled child element
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£2,670
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£2,715
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Severely disabled child element
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£1,075
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£1,095
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Income thresholds and withdrawal rates
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First income threshold
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£6,420
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£6,420
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First withdrawal rate
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39%
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39%
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Second income threshold
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£50,000
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£50,000
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Second withdrawal rate
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6.67%
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6.67%
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First threshold for those entitled to Child Tax Credit only
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£16,040
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£16,190
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Income disregard
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£25,000
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£25,000
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Child benefit and guardian’s allowance rates 2010
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£ per week
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2009-10
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2010-11
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Eldest/Only Child (Jan 2009)
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£20.00
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£20.30
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Other Children (Jan 2009)
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£13.20
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£13.40
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Guardian’s Allowance (April 2009)
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£14.10
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£14.30
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Stamp taxes and duties
Transfers of land and buildings (consideration paid) from 1 January 2010
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Rate
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Residential in disadvantaged areas & Non Residential
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Residential outside disadvantaged areas
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Total value of consideration
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Zero
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£0 - £150,000
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£0 - £125,000
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1%
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Over £150,000 - £250,000
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Over £125,000 - £250,000*
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3%
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Over £250,000 - £500,000
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Over £250,000 - £500,000
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4%
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Over £500,000
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Over £500,000
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* First time buyers can claim relief from SDLT on residential transactions up to £250,000 between 25 March 2010 and 25 March 2012
Bingo Duty
Bingo Duty reduces from 22% to 20% with effect from 29 March 2010.
Fuel Duty
The next increase in fuel duty will be implemented in three stages: 1 pence per litre on 1 April 2010, 1 pence per litre on 1 October 2010, and 0.76 pence per litre on 1 January 2011.
Insurance Premium Tax
Increases from the 6 April 2011. Higher rate to be 20%, standard rate 6%.
Landline Duty
A duty of 50p per month on telephone landlines effective from 1 October 2010 has been abolished effective 23/06/10.
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