|
Income
Tax Rates
|
|
|
2007/08 |
2006/07 |
|
Lower
rate band
Basic
rate band
Higher
rate band
Lower
Rate |
first
then
above |
£2,230
£32,370
£34,600
10.00% |
£2,150
£31,150
£33,300
10.00% |
|
Basic
Rate
on
dividend income
on
interest received
on
all other income |
|
10.00%
20.00%
22.00% |
10.00%
20.00%
22.00% |
|
Higher
Rate
on
dividend income
on
other
|
|
32.50%
40.00%
|
32.50%
40.00%
|
|
Discretionary
Trusts etc.
on
dividend income
on
other
|
|
32.50%
40.00%
|
25.00%
34.00%
|
|
Standard
rate band |
|
£1,000 |
£1,000 |
[
GO TO TOP ]
Personal
Allowances
|
|
2007/08 |
2006/07 |
|
Personal
Allowance
Under
65
Aged 65 to 74
75
and over |
£5,225
£7,550 £7,690 |
£5,035
£7,280
£7,420 |
|
Blind
persons allowance
Legal
couple's allowance
over
65 (minimum)
65
to 74
75
and over
Age
allowance ceiling
Age
allowance reduction |
£1,730
£2,440
£6,285
£6,365
£20,900
50.00% |
£1,660
£2,350
£5,905
£5,975
£19,500
50.00% |
Notes
-
The
tax relief on married couple's allowance is at 10% rate.
-
Legal couple's allowance-
1 of them born pre 5/4/1935.
[ GO
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Child Tax Credit
| |
2007/08 |
2006/07 |
|
Family Element
Baby Addition
Income Limit
Claw Back of CTC occurs where
income increases more than:
Weekly Child Care Voucher |
£545
£545
£58,175
£25,000
£55 |
£545
£545
£50,000
£25,000
£55 |
Notes
- CTC reduces by 6.67% of Income in
excess of limit
- CTC is provisionally based on prior
years income
[ GO
TO TOP ] Vehicle
Benefits
Chargeable
on employees earning £8,500 (including benefits) & on all directors.
|
|
2007/08 |
2006/07 |
|
Van
Benefit - including fuel
to
4 years old
over
4 years old
fuel
benefit |
£3,000
£3,000
£500 |
£500
£350
£0 |
|
Notes
-
No benefit arises if employee is required to take van
home & there is no other private use.
|
|
Car
Benefit
2007/08
and 2006/07
less than 140 gram CO2
every
5 grams CO2 per k.m.
>240
grams CO2 per k.m.
|
Petrol
15.00%
1.00%
35.00% |
Diesel
18.00%
1.00%
35.00%
|
|
Notes
-
Car benefits are calculated on a percentage of list price.
-
The
list price is subject to a ceiling of £80,000.
-
The
list price is reduced by employee contributions of up to £5,000,
which reduce car benefits pro rata.
-
From 2008/09
the Co2 gram per km will start at 135gm per km with a 10% rate
for <120gm per km.
-
Most cars
will thereby increase by 1%
-
New 2%
reduction on green fuel cars from 2008/09
|
Older cars |
<1400cc |
<2000cc |
>2001cc |
| Pre
Dec 98 |
15% |
22% |
32% |
| Jan
99 -Mar 02 |
15% |
25% |
35% |
|
Car
fuel benefits
|
The
car fuel benefit for both 2007/08 and 2006/07 is based on car benefit percentage
multiplied by £14,400.
|
Car
fuel VAT scale charge
|
2007/08 |
|
2006/07 |
|
Complete change -
based on CO2 emissions. Starts at £728 at 140g/km up to £1704 at
240g/km
|
Up
to 1400cc
1401
to 2000cc
Over
2000cc
|
Petrol
£
1092
1384
2032 |
Diesel
£
1040
1040
1324 |
[ GO
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Fixed
Profit Car Scheme 2006/07
and 2007/08
|
|
> 10,000
Miles |
< 10,000
Miles |
|
Cars
Motocycle
Bicycle
|
40p
24p
20p
|
25p
24p
20p
|
[ GO
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National
Insurance
|
|
2007/08 |
2006/07 |
|
Class
1
Earnings
Limit
Lower
weekly limit
Upper
weekly limit
Employee
Threshold
Employer
Threshold |
£87.00
£670.00
£100.00
£100.00 |
£84.00
£645.00
£97.00
£97.00 |
|
Employee
Contributions
Below
threshold
Between
thresholds Above
Threshold |
0.00%
11.00%
1.00% |
0.00%
11.00%
1.00% |
|
1.6%
reduction for contracted out schemes |
|
|
|
Employer
Contributions
Above
threshold |
12.80% |
12.80% |
|
Between lower &
upper thresholds 3.7% reduction for final salary contracted out
schemes
(1.4% for
money purchase schemes) |
|
Class
1a
On
all NI-able benefits |
12.80% |
12.80% |
|
Class
2 - Self Employed
Earnings
exemption
Weekly flat rate |
£4,635.00
£2.20 |
£4,465.00
£2.10 |
|
Class 3
- Voluntary |
£7.80 |
£7.55 |
|
Class
4 - Self employed
Lower
limit
Upper
limit
Rate
between thresholds
Rate
above upper limit |
£5,225.00
£34,840.00
8.00%
1.00% |
£5,035.00
£33,540.00
8.00%
1.00% |
[ GO
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Capital
Allowances
|
|
2007/08 |
2006/07 |
|
Allowances Small Businesses: |
|
|
First year
allowances
Writing down
allowances
|
50.00%
25.00%
|
50.00%
25.00%
|
[ GO
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Tax
Exempt Savings
|
|
2007/08 |
2006/07 |
|
ISA -
annual limits |
£7,000 |
£7,000 |
|
Enterprise
Investment Schemes
Limits
Income Tax Rate
Venture
Capital Trusts
Limits
Income Tax Rate
|
£400,000
20.00%
5 years
30.00%
|
£400,000
20.00%
5 years
30.00%
|
[ GO
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Corporation
Tax
|
|
2007/08 |
2006/07 |
|
Small
companies rate
Full
rate
Small companies
Limit Upper
marginal profits
Effective
marginal rate
|
20.00%
30.00%
£300,000
£1,500,000
32.50% |
19.00%
30.00%
£300,000
£1,500,000
32.75% |
|
Note
-
The small
companies rate increases to 21% in 06/09 & 22% in 09/10. The
marginal rate drops to 29.5% in 08/09 and to 29.5% in 2008/09.
-
Full rate
reduces to 28% in 2008/09
-
Capital
gains for companies remain unchanged and still retain indexation
relief
|
[ GO
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Capital
Gains Tax
|
|
2007/08 |
2006/07 |
|
Rates
of tax
Lower
rate band
Basic
rate band
Higher
rate band
|
10.00%
20.00%
40.00%
|
20.00%
20.00%
40.00%
|
|
Annual
exemption
Individuals
Trusts
Chattels
Chattel
proceeds (5/3 of excess gain is taxable) |
£9,200
£4,600
£6,000 |
£8,800
£4,250
£6,000 |
|
Business & Employer
Taper Relief
Owned
one year
Owned
two years
|
50.00%
75.00% |
|
|
Non-Business
Taper Relief
Asset
owned after 3 years
Asset
owned after 4 years
Asset
owned after 5 years
Asset
owned after 6 years
Asset
owned after 7 years
Asset
owned after 8 years
Asset
owned after 9 years
Asset
owned after 10 years |
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00% |
|
[ GO
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Value
Added Tax
|
|
2007/08 |
2006/07 |
|
Standard
rate
Rate
on power & heating etc.
VAT
fraction
Cash
Accounting limit
Annual
Accounting limit
Flat
rate scheme
Registration
level
Deregistration
level |
17.50%
5.00%
7/47ths
£1,350,000
£1,350,000
£150,000
£64,000
£62,000 |
17.50%
5.00%
7/47ths
£660,000
£1,350,000
£150,000
£61,000
£59,000 |
[ GO
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Personal
Pensions
|
2007/08 |
2006/07 |
|
Maximum
contributions:
Personal
Personal Limit
Employer
Annual Allowance
Excess Charge
Life Time Fund
Limit
Lift Time
Allowance Charge
If
excess taken as cash
If excess
taken as income |
100% of
earnings or
£225,000
£225,000
25.00%
£1,600,000
55.00%
25.00% |
£3,600 if
greater
£215,000
£215,000
25.00%
£1,500,000
55.00%
25.00% |
[ GO
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Stamp
Duty
|
|
2007/08 |
2006/07 |
|
Land & Buildings
Lower
exempt limit
Below £250,000
£250,001
to £500,000
over
£500,001 |
£125,000
1.00%
3.00%
4.00% |
£125,000
1.00%
3.00%
4.00% |
[ GO
TO TOP ]
Inheritance
Tax
|
|
2004/05 |
2003/04 |
|
Nil
rate band
Charge
on death
Life
time transfers
Annual
gift exemption
Small
Gifts |
£263,000
40.00%
20.00%
£3,000
£250 |
£255,000
40.00%
20.00%
£3,000
£250 |
| Taper
relief on gifts within 7 years prior to death |
|
|
0
- 3 years
3
- 4 years
4
- 5 years
5
- 6 years
6
- 7 years |
100.00%
80.00%
60.00%
40.00%
20.00% |
100.00%
80.00%
60.00%
40.00%
20.00% |
|
Business
Relief
Agricultural
Relief |
100.00%
50.00% |
100.00%
50.00% |
|
