K.P.Bonney & Co.
Chartered Accountants and Chartered Tax Advisers

Tax Data 2009/2010

Contents
Income tax bands and rates
Allowances that Reduce Taxable Income
Allowances that Reduce Tax
Mileage Allowances
Vehicle Benefits
Pension Premiums
National Insurance Contributions
Corporation Tax
Capital Allowances
Value Added Tax
Capital Gains Tax
Inheritance Tax
Key Dates and Deadlines

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Income tax bands and rates


 

2009/10

2008/09

Starting rate band to

£2,440

£2,320

Non-savings income tax rate

20%

20%

Savings income tax rate - 2009/10 only applicable where taxable non-savings income is under £2,440

10%

10%

Basic rate band – next

£34,960

£32,480

Non-savings income tax rate

20%

20%

Savings income tax rate

20%

20%

UK dividend income tax rate

10%

10%

Higher rate band – over

£37,400

£34,800

UK dividend income tax rate

32.5%

32.5%

All other income tax rate

40%

40%

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Allowances that Reduce Taxable Income

 

2009/10

2008/09

Personal allowance - under 65

£6,475

£6,035

Personal allowance - 65 to 74

£9,490

£9,030

Personal allowance - 75 and over

£9,640

£9,180

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Allowances that Reduce Tax

Married Couple's Allowance

 

2009/10

2008/09

Married couple's allowance - under 75

N/A

£653.50

Married couple's allowance - 75 and over

£696.50

£662.50

Ages are at the beginning of the tax year.
It is the age of the elder spouse that determines the amount of the tax reduction.
The married couple's allowance is available only if at least one of the couple was born before 6 April 1935.
The age related allowances are progressively withdrawn from individuals with income exceeding £22,900 (2008/09 £21,800), reducing first the personal allowance and then the married couple's allowance (only the husband's income is considered). The personal allowance cannot fall below £6,475 (2008/09 £6,035) and the married couple's tax reduction cannot fall below £267 (2008/09 £254).


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Mileage Allowances


Under the statutory scheme, the maximum tax free mileage allowances for employees using their own transport for business journeys are as follows:

 

First 10,000 miles

Miles over 10,000

Car / van

40p

25p

Motorcycle

24p

24p

Bicycle

20p

20p


If an employer pays a mileage rate higher than the statutory rate the employee is chargeable to income tax on the excess.
If an employer pays a mileage rate lower than the statutory rate the employee can claim tax relief on the shortfall.

Car - Advisory fuel rates effective from 1 July 2009

Engine capacity

Petrol

Diesel

Gas
Up to 1400cc

10p

10p

7p
1401 - 2000cc

12p

10p

8p
Over 2000cc

18p

13p

12p

VAT registered businesses can reclaim VAT at the rate of 3/23rds based on these fuel only mileage rates. They must produce sufficient fuel VAT receipts to support the amount of VAT reclaimed. Based on the table above the amount of VAT recoverable for each business mile is as follows:

Car - Advisory fuel rates - VAT recoverable from 1 July 2009

Engine capacity

Petrol

Diesel

Gas
Up to 1400cc

1.30p

1.30p

0.91p
1401 - 2000cc

1.56p

1.30p

1.04p
Over 2000cc

2.35p

1.70p

1.56p


The above rates replace the ones which were introduced on 1 January 2009. These rates were as follows:

Car - Advisory fuel rates effective from 1 January 2009

Engine capacity

Petrol

Diesel

Gas
Up to 1400cc

10p

11p

7p
1401 - 2000cc

12p

11p

9p
Over 2000cc

17p

14p

12p

VAT registered businesses can reclaim VAT at the rate of 3/23rds based on these fuel only mileage rates. They must produce sufficient fuel VAT receipts to support the amount of VAT reclaimed. Based on the table above the amount of VAT recoverable for each business mile is as follows:

Car - Advisory fuel rates - VAT recoverable from 1 January 2009

Engine capacity

Petrol

Diesel

Gas
Up to 1400cc

1.30p

1.43p

0.91p
1401 - 2000cc

1.56p

1.43p

1.17p
Over 2000cc

2.21p

1.82p

1.56p


The above rates replace the ones which were introduced on 1 July 2008. These rates were as follows:

Car - Advisory fuel rates from 1 July 2008

Engine capacity

Petrol

Diesel

Gas
Up to 1400cc

12p

13p

7p
1401 - 2000cc

15p

13p

9p
Over 2000cc

21p

17p

13p

VAT registered businesses can reclaim VAT at the rate of 7/47ths based on these fuel only mileage rates. They must produce sufficient fuel VAT receipts to support the amount of VAT reclaimed. Based on the table above the amount of VAT recoverable for each business mile is as follows:

Car - Advisory fuel rates - VAT recoverable from 1 July 2008

Engine capacity

Petrol

Diesel

Gas
Up to 1400cc

1.79p

1.94p

1.04p
1401 - 2000cc

2.23p

1.94p

1.34p
Over 2000cc

3.13p

2.53p

1.94p


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Vehicle Benefits



Cars

Tax is charged on a percentage of the price of the car.
The price of the car for this purpose is the manufacturer's list price plus the cost of any accessories.
The percentage for this purpose is the carbon dioxide emissions factor of the car measured in grams per kilometer (g/km).

CO2 emissions g/km Petrol or pre 2006 Euro IV diesel engine Other diesel engines Hybrid petrol / electric engine E85, LPG or dual LPG and petrol CO2 emissions g/km Petrol or pre 2006 Euro IV diesel engine Other diesel engines Hybrid petrol / electric engine E85, LPG or dual LPG and petrol
120 or less10%13%10%10%185 - 18925%28%22%23%
121 - 13915%18%12%13%190 - 19426%29%23%24%
140 - 14416%19%13%14%195 - 19927%30%24%25%
145 - 14917%20%14%15%200 - 20428%31%25%26%
150 - 15418%21%15%16%205 - 20929%32%26%27%
155 - 15919%22%16%17%210 - 21430%33%27%28%
160 - 16420%23%17%18%215 - 21931%34%28%29%
165 - 16921%24%18%19%220 - 22432%35%29%30%
170 - 17422%25%19%20%225 - 22933%35%30%31%
175 - 17923%26%20%21%230 - 23434%35%31%32%
180 - 18424%27%21%22%235 and over35%35%32%33%
185 - 18925%28%22%23%

The exact CO2 figure is rounded down to the lower 5g/km for cars with emissions of 125g/km or more.
Euro IV diesel cars registered before 1 January 2006 are treated as petrol cars.
Euro IV diesel cars rgistered from 2006 are treated as other diesels.
Electric only cars are taxed at 9% of the list price.


Car Fuel

The benefit is £16,900 multiplied by the CO2 emissions percentage of the car. See cars above.



Van Benefit (including fuel)

The taxable benefit for the unrestricted use of company vans is £3,000. There is a further £500 taxable benefit if the employer provides fuel for private travel.

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Pensions

Limits and rates

2009/10
Maximum age for tax relief

74
Minimum age for taking benefits

50
Annual allowance

£245,000
Annual allowance charge

40% of excess
Lifetime allowance charge - lump sum paid

55%
Lifetime allowance charge - monies retained

25%
on cumulative benefits exceeding

£1,750,000 *
Maximum tax free lump sum

25% *
Maximum relievable personal contribution

100% relevant UK earnings or £3,600 if greater


* Subject to transitional protection for excess amount.

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