Income Tax Rates
|
Rate on taxable income
|
Band, £(GBP)
|
Rate,%
|
| Basic rate |
Up to 36,000 |
20* |
| High rate |
Over 36,000 |
40 |
| * Savings income up to £ 2.320 taxable at 10% |
|
Allowances and Reliefs
| |
£ (GBP)
|
| Personal allowance |
5,435
|
| Age allowance |
| Personal |
| aged 65-74 |
9,030
|
| aged 75 and over |
8,180
|
| Married couple's allowance |
| aged 65-74 |
6,535*
|
| aged 75 and over |
6,625*
|
| Income Limit |
| aged 65-75 |
21,800
|
| aged 75 and over |
21,800
|
| *Relief restricted to 10%. One spouse must be 70 or more. |
|
Corporation Tax
| Taxable profit £ (GBP)s |
| 1 - 300,000 |
21%
|
| 300,001 - 1,500,000 |
29,75%
|
| Over 1,500,001 |
28%
|
| |
| Marginal relief fractions from 300.001 to 1.500.000 |
7/400
|
|
Capital Allowances
| First Year Allowances |
%
|
| All businesses, Plant & Machinery, first £ (GBP) 50.000 |
100%
|
| Small-sized businesses, Plant & Machinery, |
Nil
|
| Medium-sized businesses |
Nil
|
| Writing-down allowances |
|
| Integral fixtures |
10 p.a.
|
| Long Life plant & machinery |
10 p.a.
|
| Plant and machinery for overseas leasing |
—
|
| Other plant and machinery |
20 p.a.
|
| Industrial/agricultural buildings, hotels & sports pavilions |
3 p.a.
|
|
Capital Gains Tax
| Rates (individuals) |
18% |
| Rate (UK trusts) |
18% |
| Individual annual exemption |
9,600 |
| Trusts annual exemption |
4,800 |
Capital gains taper relief (abolished for disposals after 5 April 2008. Entrepreneurs’ Relief on disposals of a business after 5 April 2008 in 4/9 of the gains up to £1 million) – Disposals 6.4.2002 – 5.4.2008
|
| Number of complete years after 5.04.98 for which asset held |
Business assets chargeable for disposals |
Effective Tax Rate* |
Non business assets chargeable for disposals |
Effective Tax Rate* |
| |
% |
% |
% |
% |
| 0 |
100 |
40 |
100 |
40 |
| 1 |
50 |
20 |
100 |
40 |
| 2 |
25 |
10 |
100 |
40 |
| 3 |
25 |
10 |
95 |
38 |
| |
No further reductions |
|
Reduces by 5% p.a. until: |
Reduces by 2% p.a. until: |
| 10 or more |
25 |
10 |
60 |
24 |
* For higher rate payer
** Add 1 bonus year if asset held at 17 March 1998 |
|
Car Benefits
| Petrol and diesel cars with approved CO2 emissions registered after 31 December 1997 |
| CO2 emissions (gms/km) |
Petrol % |
Diesel % |
| 120 or lower |
10 |
13 |
| 121 |
15 |
18 |
| 140 |
16 |
19 |
| 145 |
17 |
20 |
| Tax charge increases by 1% per each additional 5 gms/km until: |
| 215 |
31 |
34 |
| 220 |
32 |
35 |
| 225 |
33 |
35 |
| 230 |
34 |
35 |
| 235 |
35 |
35 |
| |
|
|
| Car Fuel benefits (not electric cars) |
|
|
| Same % used to calculated the car benits |
£(GBP) 16.900
|
| |
|
|
| Approved mileage rates (employee’s own vehicle) |
|
|
| Rete per mile |
|
|
| Car or van: First 10.000 miles |
40p |
| Car or van: over 10.000 miles |
25p |
| Motorcycle |
24p |
| Bicycles |
20p |
| Additional passenger payment |
5p |
|
Enterprise investment scheme (EIS)
| Investment qualifying for income tax relief |
£ 500 |
| Income tax relief |
20% |
| Capital gains tax of EIS shares |
Nil |
| Capital gains deferral by EIS investment |
Unlimited |
|
Venture capital trusts (VCTs)
| Investment qualifying for income tax relief |
£ 200.000 |
| Income tax relief |
30% |
| Tax on dividends |
Nil |
| Capital gain tax on VCT shares |
Nil |
| Capital gains deferral by VCT investment |
Nil |
|
Individual Savings Accounts (ISAs)
| Maximum annual contributions – upto £ 7.200 in total, but invest no more than £ 3.600 in cash |
|
VAT
| Standard Rate |
17.5%
|
| Annual Turnover Limits |
|
| Registration |
£ 67,000
|
| Deregistration |
£ 65,000
|
|
National Insurance Contributions
| Weekly earnings £(GBP) |
Not contracted out
|
Contracted out |
|
| Class I (employment) Employee’s rate |
| First 90 |
Nil
|
Nil |
|
| 91 to 105 |
Nil
|
Nil |
|
| 106 to 770 |
11% |
9.4% |
|
| Earnings over 770 |
1% |
1% |
|
| Employer’s rates |
|
Contracted out salary related schemes |
Contracted out money purchase schemes |
| First 90 |
Nil |
Nil |
Nil |
| 91 to 105 |
Nil |
Nil |
Nil |
| 106 to 770 |
12.8% |
9.1% |
12.4% |
| Earnings over 770 |
12.8% |
12.8% |
12.8% |
|
National Minimum Wage
| |
From October 2007
|
|
Workers
|
per hour
|
|
21 years +
|
£ (GBP)5.52
|
|
18-21 years
|
£ (GBP)4.60
|
|
16-17 years
|
£ (GBP)3.40
|
|
Personal Pensions
| |
Contribution limit - 0% of net relevant earnings |
| Age on 6 April 2006 |
PPS |
RAP* |
| Under 36 |
17.5 |
17.5 |
| 36-45 |
20.0 |
17.5 |
| 46-50 |
25.0 |
17.5 |
| 51-55 |
30.0 |
20.0 |
| 56-60 |
35.0 |
22.5 |
| 61 and over |
40.0 |
27.5 |
N.R.E. cap for P.P.S. 2004/05: £ (GBP)102,000
2005/06: £ (GBP)105,600 |
| *Retirement annuity policy limits apply to policies effected before 1 July 1988. |
| Stakeholder pensions allow individuals to contribute up to £ (GBP)3,600 per annum irrespective of earnings or age. |
|
Stamp Duty
| Intelectual property |
Nil |
| Goodwill |
Nil |
| Chattels |
Nil |
| Shares and securities |
0.5% |
| Land, and lease premiums £ (GBP)3.40 |
| Residential |
|
| £125.000 or less |
Nil |
| £125.001-250.000 |
1% |
| £250.001-500.000 |
3% |
| Over £500.000 |
4% |
| Non-residential or mixed |
|
| £150.000 or less |
Nil |
| £150.000 – 250.000 |
1% |
| £250.001-500.000 |
3% |
| Over £500.000 |
4% |
|
