|
Income Tax Allowances |
2007/
2008 |
2006/
2007
|
|
National Insurance Contributions |
|
Personal Allowance |
£ |
£ |
|
2007/08
|
|
General |
5225 |
5035 |
|
Class
1 (Earning related) |
|
Aged 65 to 74 in tax year |
7550 |
7280 |
|
|
Not
contracted Out |
Contracted Out |
|
Aged 75 or over in tax
year |
7690 |
7420 |
|
Employees Weekly
earning |
|
|
|
Age allowance income
limit |
20900 |
20100 |
|
First £ 100 |
Nil |
Nil |
|
Minimum where income
exceeds |
5225 |
5035 |
|
On Bal. Up to £670 |
11% |
9.4% |
|
|
|
|
Over £670 |
1% |
1% |
|
Married
Couples allowance |
|
Employers
Weekly earning |
|
either partner aged under
75 and born before 6 April 1935 |
6285 |
6065 |
|
|
NCO |
SRS |
MPS |
|
either partner aged 75 or
over in year of assessment |
6365 |
6135 |
|
First £ 100 |
Nil |
Nil |
Nil |
|
age allowance income
limit |
20900 |
20100 |
|
On Bal. Up to £670 |
12.8% |
9.1% |
11.4% |
|
minimum where income
exceeds limit |
2440 |
2350 |
|
Over £670 |
12.8% |
12.8% |
12.8% |
|
Available for civil
partners |
|
|
|
Employees rate are
reduced to 4.85% for married women with valid
certificates of election but the 1% rate above £670
still applies. Rates are nil for men over 65 and women
over 60. Normal employers contributions are still
payable.
Employers receive a
rebate of 3.7% for salary-related schemes and 1.4% for
money purchase schemes on earning from £87 to £100 per
week. A rebate of 1.6% on earning from £87 to £100 per
week is given to employees (or employers where
insufficient contributions have been paid for offset). |
|
Blind persons allowance |
1730 |
1660 |
|
|
|
|
|
|
Income Tax Rate |
|
|
|
|
|
|
|
Taxable
Income
£ |
Band
£ |
Rate
% |
Tax on
Band
£ |
Total
Tax
£ |
|
Class 1A and
Class 1B - 12.8%
Class 2 (Self
employed) - Flat rate £2.20 a week. Small earnings
exemption £4,635 a year.
Class 3 (Voluntary
contributions) - £7.80 a week.
Class 4
(Self-employed) - 8% of profits between £5,225 and
£34,840 a year. 1% of profits above £34,840 a year. |
|
2007/08 |
|
|
|
|
|
|
|
0 - 2230 |
2230 |
10 |
22300 |
223.00 |
|
Inheritance Tax |
|
2231 - 34600 |
32370 |
22 |
7121.40 |
7344.40 |
|
Transfers
after 5 April 2007 and before 6 April 2008 |
|
Over 34,600 |
-- |
40 |
-- |
-- |
|
Death Rates
Gross transfer |
Rate % |
|
2006/07 |
|
|
|
|
|
|
0 - 2150 |
2150 |
10 |
215.00 |
215.00 |
|
Up to £300,000 |
Nil |
|
2151 - 33300 |
31,150 |
22 |
6853.00 |
7068.00 |
|
Over £300,000 |
40 |
|
Over 33,300 |
-- |
40 |
-- |
-- |
|
|
|
Savings income is generally treated as the highest
part of total income. Interest is taxed at 10% within
the starting rate band, 20% within the basic rate
bands and 40% thereafter. Income from dividends is
taxed at 10% within the starting and basic rate bands
and at 32.5% thereafter (these rates are applied to
the dividend grossed-up by a tax credit of 1/9). |
|
Chargeable lifetime transfers are initially charged at
20%. Annual gifts of up to £3,000 per donor are
exempt. |
|
|
Corporation Tax |
|
|
|
Financial Year to |
31/3/2008 |
31/3/2007 |
|
Capital
Gain Tax |
|
Financial
Year to |
31/03/2008 |
31/03/2007 |
|
Annual
exempt amounts 2007/08
Individuals, disabled
trusts, personal representatives for year of death and
|
£ |
|
Full Rate |
30% |
30% |
|
Small companies rate |
20% |
19% |
|
20%/19% rate limit |
£300,000 |
£300,000 |
|
two years thereafter |
9,200 |
|
marginal relief limit |
£1,500,000 |
£1,500,000 |
|
Trust generally |
4,600 |
|
marginal relief fraction |
1/40 |
11/400 |
|
Rates :
Individual - 10%,
20% or 40% (taxed in line with interest: see column
under Income Tax Rates)
Trust and personal
representation - 40% |
|
effective marginal rate |
32.5% |
32.75% |
|
|
Individual Savings
Account |
|
Taper relief (disposals
after 5/4/2002) |
|
|
Overall
limit |
Cash
limit |
|
Complete years held
|
% of gain relieved |
|
2007/2008 |
£7,000 |
£3,000 |
|
after 5/4/1998* |
business assets |
non-business assets |
|
2006/2007 |
£7,000 |
£3,000 |
|
1 |
50 |
-- |
|
Savings are exempt from
income tax and capital gains tax. |
|
2 |
75 |
-- |
|
|
|
3 |
75 |
5 |
|
Car
Fuel Benefit |
|
4 |
75 |
10 |
|
For
2007/08, car fuel is calculated by applying the above
car benefit percentage to a figure of £14,400. |
|
5 |
75 |
15 |
|
|
6 |
75 |
20 |
|
|
|
7 |
75 |
25 |
|
Tax-Free Mileage Allowances |
|
8 |
75 |
30 |
|
Employee's own vehicle |
|
9 |
75 |
35 |
|
Motorcars and vans |
2007/08 |
|
10 or more |
75 |
40 |
|
Up to 10,000 business
miles |
40P |
|
*Including one bonus year for non-business assets held
on 17 March 1998. |
|
Over 10,000 business
miles |
25P |
|
|
|
|
|
Each passenger making
same trip |
5P |
|
Stamp Taxes |
|
Motorcycles |
24P |
|
Shares
and marketable securities 0.5%
Rounded up to the nearest
multiple of £5 |
|
Cycles |
20P |
|
|
Advisory fuel rates for company car from 1 February
2007 |
|
Transfers of land and
buildings (Consideration paid) |
|
Cylinder capacity |
Petrol |
Diesel |
LPG |
|
Residential |
Non-residential |
Rate |
|
Up to 1,400 cc |
9P |
9P |
6P |
|
£125,000 or less |
£150,000 or less |
Nil |
|
1401cc to 2000cc |
11P |
9P |
7P |
|
£125,001 - £250,000 |
£150,001 - £250,000 |
1% |
|
Over 2000cc |
16P |
12P |
10P |
|
£250,001 - £500,000 |
£250,001 - £500,000 |
3% |
|
|
|
Over £500,000 |
Over £500,000 |
4% |
|
Registered Pension
Schemes |
|
Different
rates apply in designated disadvantaged areas. |
|
Individual contributions
2007/08
Maximum tax-relievable
contributions are the higher of #
100% of taxable UK earnings or # £3,600
(provided the scheme operates tax relief at source). |
|
Leases
Rent (net present value) |
|
|
Residential |
Non-residential |
Rate |
|
Annual
allowance |
|
Up to £125,000 |
Up to £150,000 |
Nil |
|
2007/08 |
£225,000 |
|
Over £125,000 |
Over £150,000 |
1% |
|
2006/07 |
