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| Income tax | 2008-09 | 2009-10 |
|---|---|---|
| Tax-free personal allowance (under 65) | £6,035 | £6,475 |
|
Starting rate: 10% (applies to savings income only) |
£0-2,320 | £0-£2,440 |
| Basic rate: 20% | £0-£34,800 | £0-£37,400 |
|
Higher rate: 40% (dividends: 32.5%) |
Over £34,800 | Over £37,400 |
| Capital Gains | 2008-09 |
|---|---|
| Annual Exempt Amounts for individuals | £9,600 |
| Corporation tax (rates for financial years starting on 1st April) | 2008-09 | 2009-10 |
|---|---|---|
| First £300,000 | 21% | 21% |
|
Next £1,200,000 |
29.75% | 29.75% |
| Over £1,500,000 | 28% | 28% |
|
Tax credit on dividends |
10% | 10% |
| Approved HMRC mileage rates | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
|---|---|---|
| Cars & vans | 40p | 25p |
|
Motor cycles |
24p | 24p |
| Bicycles | 20p | 20p |

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