Individuals

NIC
  • NIC rates and thresholds for 2010/11 are unchanged from the current year 2009/10 (apart from two small exceptions).
  • For 2011/12 it has already been announced in the 2008 PBR that there would be a 0.5% rise in rates, this has been increased by a further 0.5% in today's PBR. Therefore from 6 April 2011 there will be a 1% increase in NIC rates. 

Tax rates and thresholds 

  • All tax rates and thresholds are to remain unchanged for 2010/11.
  • For 2012/13 the higher rate threshold will be frozen at the 2011/12 amount. The personal allowance will be increased and the basic rate limit will be reduced by the same amount. 
Inheritance tax
  • The inheritance tax threshold is to be frozen at £325,000 for 2010/11. It had previously been announced that it would increase to £350,000.
Tax credits
  • From 6 April 2011 several elements of the Child Tax Credit and Working Tax Credit will increase.
  • From 6 April 2011 working tax tax credits for the over 65s are to be extended to those who work at least 16 hours per week. Until then the general limit was 30 hours per week, although there were certain exceptions.
Pensions higher rate tax relief
  • Budget 2009 introduced anti-forestalling legislation to prevent people from making large one-off contributions to their pensions before 6 April 2011 to avoid the new tax relief restriction. The PBR has extended the rules from 9 December 2009 to cover those with incomes of £130,000 or over.
  • When calculating income for the £150,000 threshold it is to include the value of employer pension contributions , providing the individual's income before taking those contributions into account, exceeds £130,000    
 Workplace canteens
  • From 6 April 2011, where free or subsidised meals are provided as part of a salary sacrifice or flexible benefit arrangement the tax exemption will be restricted.
Company cars
  • From 6 April 2012 all CO2 emissions thresholds will move down by 5g/km.
  • For five years from 6 April 2010 the appropriate percentage for electric cars will fall from 9% to 0%.
Fuel benefit
  • The figure used to calculate the taxable benefit from receiving private fuel for a company car will rise from £16,900 to £18,000 from 6 April 2010.
  • The figure used to calculate the taxable benefit from receiving private fuel for a company van will rise £500 to £550 again from 6 April 2010.
  • For five years from 6 April 2010 there will be no tax or NIC where an employer provides an individual with an electric van.

Furnished holiday lettings 

  • As already announced in Budget 2009 the furnished holiday letting rules are being withdrawn from April 2010. This means furnished holiday lettings will be taxed in the same way as other property businesses. 
Households generating electricity 
  • Individuals who use renewable technology to generate electricity can receive feed-in tariffs tax free . This is as long as the electricity they generate is mainly used for for their own home.