Tax Data Rates and Allowances

Income Tax 2010-11

Basic rate band - income up to£37,400
Starting rate for savings*10%
Basic rate20%
Dividend ordinary rate10%
Higher rate - income over£37,400
Higher rate40%
Dividend upper rate32.5%
Additional rate - income over£150,000
Additional rate50%
Dividend additional rate42.5%

*Starting rate for saving income up to the starting rate limit of £2,440 within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income.

Capital Gains Tax

On chargable gainsfrom 23 Juneto 22 June
Total taxable income and gains (on or after 23 June 2010)
Up to £37,40018%18%
From £37,40128%18%
Trust rate28%18%

Corporation Tax

Financial Year to31 March 2011
Taxable Profits
First21%
Next29.75%
Over28%

Value Added Tax

From4 Jan 20111 Jan 2010
Standard Rate20%17.5%
VAT Fraction1/67/47%
Reduced Rate5%5%

Inheritance Tax

2010-11
Standard threshold£325,000
Combined threshold maximum£650,000
for married couples and civil partners
Rate of tax on balance:
Chargable lifetime transfers20%
Transfers on, or within 7 years of death subject to a tapered reduction for transfers between 7 and 3 years before death40%
Exemptions may be available; please contact us for relevant information

Registered to carry on audit work and regulated for a range of investment business activities by The Institute of Chartered Accountants in England & Wales