Budget Summary 2011 Introduction Income Tax Tax Credits and Benefits National Insurance Employees Savings and Investment Capital Gains Tax Inheritance Tax Corporation Tax Business Tax Value Added Tax Stamp Duty Land Tax Other Measures Income Tax Rates and Allowances National Insurance Contributions

Income Tax Rates and Allowances Table A   Allowances and Reliefs   2011/12 2010/11 Allowed at top rate of tax     Personal Allowance £7,475 £6,475 Personal Allowance (65-74)* 9,940 9,490 Personal Allowance (75 and over)* 10,090 9,640 Blind Person's Allowance 1,980 1,890   Allowed only at 10%     Married Couple's Allowance (75 and over)*+ 7,295 6,965 Income limit for age-related allowances 24,000 22,900   + only available if born before 6th April 1935. * Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple's allowance. MCA is reduced to a minimum of £2,800 (2010/11: £2,670). Personal allowances will be withdrawn at £1 for every £2 by which total income exceeds £100,000. There will therefore be no allowances if income is £114,950 or more (2010/11: £112,950).   Bands 2011/12 2010/11 Starting (within basic rate band)* £2,560 £2,440 Basic 35,000 37,400 Higher 35,001 - 150,000 37,401 - 150,000 Additional over 150,000 over 150,000 * There is a 10% starting rate for savings income only. If general taxable income exceeds the starting rate limit, the 10% rate is not available for savings income.   Rates differ for General, Savings and Dividend income within each band: Rates 2011/12 and 2010/11   G S D Starting N/A 10% 10% Basic 20% 20% 10% Higher 40% 40% 32.5% Additional 50% 50% 42.5% General income (salary, pension, profit, rent) uses starting, basic and higher rate bands before savings income (interest). Dividends are taxed as the 'top slice' of income.   Table B   Pension Contributions   The maximum annual tax efficient gross contributions (up to age 75) in 2011/12 are: - individuals:   £3,600 or 100% of earnings to £50,000 - employers:   £50,000 less employee contributions Maximum tax efficient fund (lifetime allowance) where benefits are taken in 2011/12: £1.8m. Only current earnings count for the 100% limit. Extra contributions above £50,000 can use unused £50,000 limit of preceding three years.   Table C   Car and Fuel Benefits   Car Benefit Assessment 2011/12 Charge based on a percentage of the initial list price of the car; the percentage depends on the carbon dioxide emission ratings of the car, if it has one. For older cars without a rating, the percentage depends on engine capacity. For 2011/12 the percentage for a petrol engine is 15% for ratings from 121g/km - 125g/km. The percentage increases by 1% for every complete 5g/km in excess of this (i.e. at 130,135 etc.), to a maximum of 35%. Lower rates apply to cars with ratings up to 120g/km (10%), 75g/km (5%), or no emissions (no tax charge). Diesel cars have 3% added to the figure for a similarly-rated petrol car, but still have a maximum percentage of 35%.   Car Fuel Assessment The benefit is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £18,800 (2010/11: £18,000). The taxable amount is therefore between £940 (5% - min.) and £6,580 (35% - max.). There is no tax on charging an emission-free electric car.