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Rates – a recap

Corporation Tax

  • The standard rate remains at 28 per cent, but watch this space;
  • The small companies' rate remains at 21 per cent (following confirmation in PBR that the introduction of the 22 per cent rate will be deferred until April 2011).

Income Tax

  • The 50 per cent rate for those with income in excess of £150,000 will be effective from 6 April 2010;
  • The effective rate for dividends will also increase to 36.1 per cent at the same time;
  • The personal allowance will be gradually withdrawn for income over £100,000 at a rate of £1 of allowance lost for every £2 over £100,000 until it is completely removed.

National Insurance Contributions

  • From 6 April 2011, the rates will increase by 1 per cent bringing Class 1 NIC to 12 per cent and 2 per cent, Class 4 NIC to 9 per cent and 2 per cent and Employers NIC to 13.8 per cent.

Capital Gains Tax

  • The standard rate will remain at 18 per cent;
  • The annual exempt amount will remain at £10,100;
  • From 6 April 2010, the lifetime limit of gains for entrepreneurs relief is doubled to £2m.

Inheritance Tax

  • The inheritance tax allowance will be frozen at £325,000 until 5 April 2015

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