Income Tax

The personal allowance for 2010/11 has been frozen at £6,475.

The higher rate income tax band has been frozen at £37,400. 

Corporation Tax

The small companies’ rate remains at 21%. This will increase to 22% from 1st April 2011.

The main companies’ rate remains at 28%.

Capital Allowances

The 100% annual investment allowance has been increased to the first £100,000 of expenditure on plant and machinery, which replaces the previous limit of £50,000.

The allowance on unrelieved expenditure brought forward will remain at 20%.

Capital Gains Tax

Standard Rate remains at 18%.

Entrepreneurs Relief on first £2 million pounds of business capital gains. All gains taxed at 10%. This replaces the previous limit of £1 million.