Tax Rates & Allowances - Main Income Tax Reliefs
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Income Tax allowances table
| Income Tax allowances |
2008-09 |
2009-10 |
2010-11 |
| Personal Allowance (1) |
£6,035 |
£6,475 |
£6,475 |
| Income limit for Personal Allowance |
Not applicable |
Not applicable |
£100,000 |
| Personal Allowance for people aged 65-74 (1)(2) |
£9,030 |
£9,490 |
£9,490 |
| Personal Allowance for people aged 75 and over (1)(2) |
£9,180 |
£9,640 |
£9,640 |
| Married Couple's Allowance (born before 6th April 1935 but aged under 75) (2)(3)(4) |
£6,535 |
Not applicable |
Not applicable |
| Married Couple's Allowance - aged 75 and over (2)(3) |
£6,625 |
£6,965 |
£6,965 |
| Income limit for age-related allowances |
£21,800 |
£22,900 |
£22,900 |
| Minimum amount of Married Couple's Allowance |
£2,540 |
£2,670 |
£2,670 |
| Blind Person's Allowance |
£1,800 |
£1,890 |
£1,890 |
|
Important annual limits
|
2009/10
|
2008/09
|
|
Individual Savings Account investment
|
**£7,200
|
£7,200
|
|
Rent a room exemption
|
4,250
|
4,250
|
|
Enterprise Investment Scheme investment
|
*500,000
|
*400,000
|
|
Venture Capital Trust investment
|
***200,000
|
***200,000
|
* Relief at 20%
**£10,200 for those aged 50+ (06/10/2009)
***Relief at 30%
(1) From the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
(2) These allowances reduce where the income is above the income limit – by £1 for every £2 of income above the limit. For the 2008-09 and 2009-10 tax years they will never be less than the basic Personal Allowance or minimum amount of Married Couple's Allowance. However, from the 2010-11 tax year the Personal Allowance for people aged 65 to 74 and 75 and over can be reduced below the basic Personal Allowance where the income is above £100,000.
(3) Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.
(4) In the 2009-10 tax year all Married Couple's Allowance claimants in this category will become 75 at some point during the year and will therefore be entitled to the higher amount of the allowance - for those aged 75 and over.
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