Personal taxation overview - May 2010
This year personal tax allowances and thresholds, and most of the National Insurance limits and thresholds, are frozen. The same applies to the Capital Gains Tax exemption, frozen at £10,100. The one NI threshold which is not frozen is the Lower Earnings Limit, which will rise in line with the Basic State Pension. This will increase the number of people who will no longer qualify for credits towards their Basic State Pension unless they are able to increase their earnings.
As previously announced, there is a new 50% top rate of Income Tax on income over £150,000. In the case of dividends the rate is 42.5%. National Insurance will increase by 1% from April 2011, on employee, employer and self-employed payments.
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