Tax Rates and Thresholds Budget 2010
For the 2010/2011 tax year:
- the basic rate will remain at 20%
- the higher rate will remain at 40%
- the additional rate will be set at 50%
- the basic rate limit will remain at £37,400
- the starting rate limit for savings will remain at £2,440
- the personal allowances will remain at their 2009/201010 amounts.
- From 2010-11 the additional rate will apply to taxable income above £150,000.
- From 2010-11 the amount of the personal allowance will be gradually withdrawn for all individuals (regardless of age) with "adjusted net incomes" above £100,000.
Inheritance Tax - Nil Rate Band
The inheritance tax (IHT) nil rate band will be frozen at its current level of £325,000 upto and including tax year 2014/2015.
Furnished Holiday Lettings
With effect April 2010 the furnished holiday lettings (FHL) rules will be withdrawn. This will mean the tax treatment of furnished holiday lettings will be the same as for other property rental businesses.