Appendix: Tax Memo 2009-2010 Newsletter Issue 1 (December 2009)

Tax Memo 2009-2010 Newsletter Issue 1 (December 2009)

PDF printer friendly version

All newsletters

Online updates

APPENDIX

Rates of tax

See TM ¶9966

HMRC have announced that the income tax bands for 2010/11 will be the same as those for 2009/10. This is due to a negative retail price index and it has previously been announced that in such circumstances, bands and allowances are frozen.

Allowances

See TM ¶9967

HMRC have announced that the tax allowances for 2010/11 will be the same as those for 2009/10. This is due to a negative retail price index and it has previously been announced that in such circumstances, allowances are frozen.

Child tax credits

See TM ¶9971

The following rates apply to child tax credits from 6 April 2010:

Element of CTC

2010/11

Maximum

£

Family element

545

Family element, baby addition

545

Child element

2,300

Disabled child element

2,715

Severely disabled child element

1,095

Working tax credits

See TM ¶9971

The following rates apply to working tax credits from 6 April 2010:

Element of WTC

2010/11

Maximum

£

Basic element

1,920

Couple and lone parent element

1,890

30 hour element

790

Disabled worker element

2,570

Serve disability element

1,095

50 plus return to work payment : 16 to 29 hours

1,320

50 plus return to work payment : 30 hours or more

1,965

Childcare maximum eligible cost for one child

175 per week

Childcare maximum eligible cost for any number of children

300 per week

Percentage of eligible costs covered

80%

Inheritance tax rates

See TM ¶9981

HMRC have announced that the nil rate band for 2010/11 will remain at £325,000. This is a reduction to the previously announced nil rate band of £350,000.