Pre-Budget Report 2009: Tax tables
These tables reflect announcements made on 9 December 2009. Some allowances (notably CGT annual exemption) remain outstanding and this is indicated by N/A - not available.
Income tax, capital gains tax, and inheritance tax
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budgie2 2009
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So what is it about politicians, esp. the last 10+ years…?
Chancellors spout budgets twice a year, and nowadays most of it is stuff that is happening not in the next tax year, but the one after. So why mention it at all?, esp. as the current guy gets a p45 whoever wins the election.
If he had only droned about bashing bankers we would have cheered him on, and off to the pub.
Particularly planning to increase NIC is just stupid as he is increasing the incentive to divert remuneration from salary to dividend – doh, Marge heeeelp!
Dividend rate
The rate of tax on dividends is not published by HMRC as part of the Budget or pre Budget pack, but you are right to raise it. The rate on dividends is unchanged - 32.5% on divis forming part of the higher rate band - so 25% of the net amount received after allowing for the tax credit. For dividends falling into the 50% band next year (called the "additional rate") the charge will be 42.5% or 36.1% of the net dividend received. With the additional NIC on both salary and the self employed, there remains an incentive to incorporate albeit a modest one using headline tax figures.
Tax tables
Won't need to bother buying tax tables next year then...