- Personal Allowance Credit increased to a ?650 flat rate payment to all eligible persons with income of less than ?9.200.
- Income tax personal allowances increased by 1% to ?9,300 for single persons and ?18,600 for married couples.
- Additional personal allowance increased to ?2,020 for over 65s, taking their allowance to ?11,320 for single persons and ?22,640 for married couples.
- Personal income tax standard rate stays at 10%, with the higher rate increasing by 2% to 20%.
- Tax cap on total income tax pyable per person increased to ?115, 000 or ?230,00 per married couple.
- Non-resident personal allowance withdrawn.
- Cap on Mortgage and Loan Interest relief reduced by ?5,000 to ?10,000 per person per annum, providing relief on up to ?200,000 of mortgage or loan per person at a 5% rate of interest.
- ?37.1 million or 6.5% decrease in net Departmental revenue spending on public services.
- ?1,000 surplus expected in 2010-11 after the transfer of ?15 million from the Reserve Fund to provide a balanced budget; ?24.4 million deficit forecast in the current year.
- Capital programme at ?96.1 million.
- Decrease in Government staff of 99 posts.
Income tax personal allowances:
Single Person's Allowance - ?9,300
Married Couple's Allowance - ?18,600
Single Parent Allowance - ?15,700 (including Single Person's Allowance)
Registered Blind Person Additional Allowance and Disabled Person Allowance - ?2,900
Thresholds at which higher rate becomes payable remain at:
Single Person - ?10,500 of taxable income
Married Couple - ?21,000 of taxable income, fully transferable between husband and wife
Single persons may have incomes of ?19,800 before paying tax at the higher rate of 20%, whilst for married couples this figure is ?39,000.
