Rates/Allowances

* Starting rate band is within basic rate band and applies to savings income only; if taxable general income exceeds the band, the 10% rate is not available.

Tax rates

General income (salary, pension, profit, rent) uses lower rate bands first, then savings (interest), then dividends. Discretionary trusts: basic rate as above applies to the first £1,000 of income, then highest rate.

2010/11

Charge based on a percentage of the initial list price of the car, including accessories, delivery charges and VAT. The percentage depends on the carbon dioxide emissions rating of the car, and whether the engine runs on petrol or diesel. For 2010/11, the taxable benefit on an electric car (no emissions) is nil.

Special rules apply to older cars which do not have a CO2 rating.
Employee contributions for private use are deducted from the taxable figure.
Company vans are charged at £3,000 if private use is more than home-to-work travel. An additional amount of £550 is charged if fuel is provided free for private use. There is no taxable benefit on an electric van.

Car fuel benefit

The benefit of free fuel for private use in a company car is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £18,000 (2009/10: £16,900). The taxable amount is therefore between £900 (min) and £6,300 (max).

Employer contributions (at 12.8%) are also due on most benefits in kind and on tax paid on an employee's behalf under a PAYE settlement agreement.

From September 2010, there will be a "holiday" from employer's NIC for new businesses employing up to 10 new employees in their first year. The maximum benefit is £5000 per employee. Businesses in certain areas, such as London and the SE, are excluded.

Maximum annual tax-efficient gross contributions to age 75

Maximum tax efficient fund on taking benefits in 2010/11: £1.8m

Only current earnings count for the 100% limit. Most personal pension contributions are paid net of basic rate tax. Extra contributions over £20,000 by those with income over £130,000 may suffer a clawback of relief.

Lifetime chargeable transfers at half the death rate, ie 20%.
Business property relief of 100% for all shareholdings in qualifying unquoted trading companies and for most unincorporated trading businesses; agricultural property relief at 100% for qualifying holdings of agricultural land.
Annual exemption for lifetime gifts £3,000.
Small gifts - annual amount per donee £250.

Tapering relief applies to reduce the tax on transfers within 7 years of death. The reduction in tax is 20% for suvivorship of 3-4 years, 40% for 4-5 years, 60% for 5-6 years and 80% for 6-7 years.

* Relief at 20%
*** Relief at 30%
** From 6.10.09, £10,200 for those aged 50+.

The scale charges for private use of business fuel are based on the CO2 emissions rating of the car. A different charge will apply for each 5g/km increase between 130g/km and 230g/km (max). For a 3 month period:

* exact figures must be obtained from full table.

Annual exempt amount 2010/11: individuals£10,100, most trustees £5,050 (unchanged from 2009/10).

Net gains after all reliefs, losses and annual exempt amount are taxed at 18% (disposals pre 23.6.10). For disposals after 22.6.10, an individual's net gains are added to income and taxed at 18% (basic rate band) and 28% (higher rate band). For trusts, the CGT rate is 18% (pre 23.6.10 disposals) and 28% (post 22.6.10 disposals).

Entrepreneurs' relief

For disposals of sole trade or interest in a partnership trade, or shares in a trading company by an employee owning at least 5%, the gain (up to the lifetime allowance) is taxed at an effective or actual rate of CGT of 10%. The lifetime limit is increased to £5m for disposals after 22.6.2010 (previously £2m from 6.4.10 - 22.6.10, £1m pre 6.4.10).

* £50,000 to 31.3.10 (companies) or 5.4.10 (income tax traders)

The special rate pool includes long life assets, integral plant in buildings, thermal insulation and cars with CO2 emissions over 160g/km. The general pool contains other plant and machinery.

The old system of cheap/expensive cars has been abolished, but transitional rules cover existing expenditure before April 2009.

Industrial building allowances are being phased out: 4% in 2007/08; 3% in 2008/09; 2% 2009/10; 1% 2010/11; nil thereafter.

For the two years to 24.3.2012, first time buyers can claim relief from SDLT on purchases of up to £250,000 for property they intend to live in.