2011 budget details
The following links give full details of the 2011 budget proposals, or use our at-a-glance section for an overview.
AT-A-GLANCE
Note: It must be remembered that these proposals are subject to amendment.
| PERSONAL TAXATION | 2011/12 | 2010/11 |
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| Personal allowance | ||
| general | £7,475 | £6,475 |
| personal allowance income limit | £100,000 | £100,000 |
| aged 65 or over in tax year | £9,940 | £9,490 |
| aged 75 or over in tax year | £10,090 | £9,640 |
| age allowance income limit | £24,000 | £22,900 |
| minimum where income exceeds limit |
£7,475 | £6,475 |
| Married couple's allowance (10% relief) |
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| either partner aged 75 or over in tax year |
£7,295 | £6,965 |
| age allowance income limit | £24,000 | £22,900 |
| minimum where income exceeds limit |
£2,800 | £2,670 |
| Blind person's allowance | £1,980 | £1,890 |
| Income tax rates | ||
| Starting savings rate | 10% | 10% |
| on income up to | £2,560* | £2,440* |
| Basic rate | 20% | 20% |
| on taxable income up to | £35,000 | £37,400 |
| Higher rate | 40% | 40% |
| on taxable income over | £35,000 | £37,400 |
| Additional rate | 50% | 50% |
| on taxable income over | £150,000 | £150,000 |
| Lower rate on dividend income | 10% | 10% |
| Higher rate on dividend income | 32.5% | 32.5% |
| Additional rate on dividend income |
42.5% | 42.5% |
| Pension schemes allowances | ||
| Annual allowance | £50,000 | £255,000 |
| Lifetime allowance | £1,800,000 | £1,800,000 |
| ISAs | ||
| overall limit | £10,680 | £10,200 |
| cash limit | £5,340 | £5,100 |
| *Starting rate applies only to savings income. If taxable non-savings income is above this limit, the starting rate is not applicable. | ||
| COMPANY TAXATION | FY2011 | FY2010 |
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| Corporation tax rates | ||
| All companies (except below) | 26% | 28% |
| Companies with small profits | 20% | 21% |
| – 20 / 21% rate limit | £300,000 | £300,000 |
| – marginal relief limit | £1,500,000 | £1,500,000 |
| – marginal relief fraction | 3/200 | 7/400 |
| – marginal rate | 27.5% | 29.75% |
| CAPITAL GAINS TAX | 2011/12 | 23.6.10– 5.4.11 |
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| Rate – standard rate | 18% | 18% |
| –higher rate | 28% | 28% |
| –trustees and personal representatives | 28% | 28% |
| –entrepreneurs' relief rate | 10% | 10% |
| General exemption limit | £10,600 | £10,100 |
| INHERITANCE TAX |
Transfers after 5/4/2009 |
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| Threshold | £325,000 | |
| Death rate | 40% | |
| VAT | ||
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| Standard rate after 3 January 2011 | 20% | |
| Standard rate 1 Jan 2010 to 3 Jan 2011 | 17.5% | |
| Registration threshold after 31 March 2011 | £73,000 | |
| (previously £70,000 after 31 March 2010) | ||
| NATIONAL INSURANCE | 2011/12 | |
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| (2010/11 in brackets where different) | ||
| Class 1 contributions | ||
| Not contracted out | ||
| The employee contribution is 12% (11%) of earnings between £139 (£110) and £817 (£844) p.w. plus 2% (1%) of all earnings above £817 (£844) p.w. The employer contribution is 13.8% (12.8%) of all earnings in excess of the first £136 (£110) p.w. Between £102 (£97) and £139 (£110) p.w., no employee contributions are payable but a notional contribution is deemed to have been paid to protect contributory benefit entitlement.. | ||
| Contracted out | ||
| The 'not contracted out' rates for employees are reduced on the band of earnings from £102 (£97) p.w. to £770 p.w. by 1.6%. For employers, they are reduced on the band of earnings from £102 (£97) p.w. to £770 p.w. by 3.7% for employees in salary-related schemes or 1.4% for employees in money purchase schemes. | ||
| Class 1A and 1B contributions | 13.8% (12.8%) | |
| Class 2 contributions | ||
| Flat weekly rate | £2.50 (£2.40) | |
| Exemption limit | £5,315 (£5,075) | |
| Class 3 contributions | ||
| Flat weekly rate | £12.60 (£12.05) | |
| Class 4 contributions | ||
| 9% (8%) on the band of profits between £7,225 (£5,715) and £42,475 (£43,875) plus 2% (1%) on all profits above £42,475 (£43,875). | ||