Budget 2009


Personal Income Tax

Tax Credits

National Insurance Contributions


Savings & Investments

Capital Gains Tax

Stamp Duty Land Tax

Inheritance Tax

Corporation Tax

Business Tax

Value Added Tax

Other Measures

Tax Tables

National Insurance

Tax Tables

Table A
Allowances and Reliefs
  2009/10 2008/09
Allowed at top rate of tax    
Personal Allowance £6,475 £6,035
Personal Allowance (65-74)* 9,490 9,030
Personal Allowance (75 and over)* 9,640 9,180
Blind Person's Allowance 1,890 1,800
Allowed only at 10%    
Married Couple's Allowance (65-74)+* N/A 6,535
Married Couple's Allowance (75 and over)+* 6,965 6,625
Income Limit for age-related allowances 22,900 21,800
+ 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 (2008/09: £2,540).
Bands 2009/10 2008/09
Starting (within basic rate band)* £2,440 £2,320
Basic 37,400 34,800
Higher over 37,400 over 34,800
* 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.
Rates differ for General, Savings and Dividend income within each band:
Rates 2009/10 and 2008/09
  G S D
Starting N/A 10% 10%
Basic 20% 20% 10%
Higher 40% 40% 32.5%
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 2009/10 are:
- individuals:   £3,600 or 100% of earnings to £245,000
- employers:   £245,000 less employee contributions
Maximum tax efficient fund (lifetime allowance) where benefits are taken in 2009/10: £1.75m.
Only current earnings count for the 100% limit. It is no longer possible to use prior earnings or to carry back contributions to earlier years.
Table C
Benefits In Kind
Car Benefit Assessment 2009/10

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 2009/10 the percentage for a petrol engine is 15% for ratings from 121g/km - 135g/km. The percentage increases by 1% for every complete 5g/km in excess of this (i.e. at 140,145 etc), to a maximum of 35%. Diesel cars have 3% added to this figure, but still have a maximum percentage of 35%. A lower rate of 10% (13% diesel) is available for cars with a rating up to 120g/km.
Car Fuel Assessment

The benefit is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £16,900 (unchanged from 2008/09).

The taxable amount is therefore between £1,690 (10% - min.) and £5,915 (35% - max.).


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