By ADRIAN LOWCOCK 08/04/2009
Each year there are slight changes to your individual tax rates. Allowances usually rise slightly to reflect the rising costs i.e. inflation. Below we have detailed a table of the changes to help you get to grips of your finances for the coming year.
| |
2008/2009 (£) |
2009/2010 (£) |
| Individual savings accounts (ISA) |
7,200 (3,600 cash) |
7,200 (3,600 cash)* |
| 40% income tax threshold |
40,835 |
43,875 |
| Pension contribution limit |
235,000 |
245,000 |
| Capital gains tax (CGT) annual exemption |
9,600 |
10,100 (tbc) |
| Inheritance tax nil-rate band |
312,000 |
325,000 |
| Inheritance tax gift allowance |
3000 |
3000 |
| Venture capital trusts (VCT) |
30% income tax relief on contributions up to £200,000 |
30% income tax relief on contributions up to £200,000 |
| Enterprise investment schemes (EIS) |
20% income tax relief on contributions up to £500,000** |
20% income tax relief on contributions up to £500,000** |
* May be increased in Budget
** Due to be increased from £400,000, also offer CGT deferral on previous gains
Source: Deloitte |
Budget
This year things are a little different, normally the budget is carried out in March ahead of the new tax year, however this time the budget will be on the 22nd April. As such it is feasible that the tax rules for this year could indeed change and be backdated. We think this eventuality is remote as the cost of administering any changes would be significant.
Early indications from the Treasury is that there will be little in this budget to help savers or offer further stimulus through tax breaks.