Resources

Tax and National Insurance rates 2011 – 12: Tables

 

Income tax and income tax allowances

Income tax personal allowances

 

2010-11

2011-12

Personal allowance1

£6,475

£7,475

Personal allowance for people aged 65-741

£9,490

£9,940

Personal allowance for people aged 75 and over1

£9,640

£10,090

Married couple’s allowance for people aged 75 and over2

£6,965

£7,295

Income limit for age-related allowances3

£22,900

£24,000

  1. The personal allowance is reduced by £1 for every £2 that an individual’s adjusted net income exceeds £100,000.
  2. The married couple’s allowance only applies where at least one of the partners (in a marriage or civil partnership) was born before 6 AprilThe allowance is reduced where the claimant has income above the age income limit, down to a minimum level (in 2011-12) of £2,800.  Tax relief on this allowance is given at a rate of 10%.
  3. Age-related allowances are reduced by £1 for every £2 an individual’s income exceeds the income limit, until the personal allowance for under 65’s is reached.

 

Bands of taxable earned income4, 5

 

2010-11

2011-12

Basic rate 20%

£0 – £37,400

£0 – £35,000

Higher rate 40%

£37,401 – £150,000

£35,001 – £150,000

Additional rate 50%

Over £150,000

Over £150,000

  1. The table shows bands of earnings in excess of an individual’s personal allowance.
  2. The tax rate is only 10% onsavingsincome where such income falls within the first £2,560 (in 2011-12) of taxable income.

 

 

Corporation tax

 

Corporation tax

 

2010-11

2011-12

Main tax rate

28%

27%

Small profits rate6

21%

20%

Marginal Relief Lower Limit

£300,000

Expected to be unchanged

Marginal Relief Upper Limit

£1,500,000

Expected to be unchanged

Standard fraction7(for profits between marginal relief lower limit and marginal relief upper limit)

7/400

Expected to be unchanged

 

  1. Previously called “Small Companies Rate”.
  2. Previously called “Marginal Small Companies Relief fraction”.

 

 

National Insurance contributions

 

Employees’ National Insurance contributions

 

2010-11

2011-12

NI rate

11%

12%

Weekly earnings between

£110 – £844

£139 – £817

NI rate on earnings above the upper earnings limit

1%

2%

Contracted-out rebate8

1.6%

1.6%

 

 

 

Employers’ National Insurance contributions

 

2010-11

2011-12

NI rate

12.8%

13.8%

Weekly earnings at or above

£110

£136

Salary-related contracted-out rebate8

3.7%

3.7%

Money purchase contracted-out rebate8

1.4%

1.4%

 

  1. Rebate applies to earnings between £102 and £770 per week for 2011-12.

 

Self-employed National Insurance contributions

 

2010-11

2011-12

Class 2 small earnings exception

£5,075

£5,315

Class 2 rate (per week)

£2.40

£2.50

Class 4 lower profits limit

£5,715

£7,225

Class 4 rate between lower and upper profits limits

8%

9%

Class 4 upper profits limit

£43,875

£42,475

Class 4 rate on profits in excess of upper profits limit

1%

2%

 

 

Basic State pension

 

Weekly basic State pension entitlement

 

2010-11

2011-12

Single pensioner

£97.65

£102.159 (tbc)

Married couple

£156.15

£163.359 (tbc)

 

  1. Based on an increase in the RPI in the 12 months to September 2010 of 4.6%.

 

 

Inheritance tax

 

Inheritance tax

 

2010-11

2011-12

Rate

40%

40%

Individual nil-rate band10

£325,000

£325,000

 

  1. In relation to deaths on or after 9 October 2007 any unused IHT nil-rate band is transferable to a spouse or civil partner.

 

 

Value Added Tax (VAT)

 

VAT

 

2010-11

2011-12

 

Before 04 Jan 2011

From 04 Jan 2011

Standard rate

17.5%

20%

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