|
Tax Table
| INCOME TAX |
07-08 |
06-07 |
| Rates |
£ |
£ |
| 10% on first |
2,230 |
2,150 |
| 22% (20% for savings income) on next |
32,370 |
31,150 |
| 40% on income over |
34,600 |
33,300 |
| Dividends for: |
basic rate taxpayers |
10% |
10% |
|
higher rate taxpayers |
32.5% |
32.5% |
| Trusts: |
standard rate band generally |
1,000 |
1,000 |
|
dividends (rate applicable to trusts) |
32.5% |
32.5% |
|
other income (rate applicable to trusts) |
40% |
40% |
| Pre-owned assets tax (£5,000 minimum taxable) |
As income |
|
|
| Main Personal Reliefs and Credits |
| Personal (basic) |
5,225 |
5,035 |
| Personal (65-74) |
7,550 |
7,280 |
| Personal (75 & over) |
7,690 |
7,420 |
| Married/civil partners (minimum) at 10%* |
2,440 |
2,350 |
| Married/civil partners (under 75) at 10%* |
6,285 |
6,065 |
| Married/civil partners (75+) at 10% |
6,365 |
6,135 |
| Age-related reliefs reduced by 50% of income over |
20,900 |
20,100 |
| Blind person’s allowance |
1,730 |
1,660 |
| Rent-a-room tax-free income |
4,250 |
4,250 |
| Venture capital trust (VCT) up to £200,000 |
30% |
30% |
| Minimum holding period for income tax relief |
5 years |
5 years |
| Enterprise investment scheme (EIS) up to £400,000 |
20% |
20% |
| Minimum holding period for income tax relief |
3 years |
3 years |
| EIS eligible for capital gains tax re-investment relief |
No limit |
| *Where at least one spouse/civil partner was born before 6 April 1935 |
|
|
| |
| REGISTERED PENSIONS |
07-08 |
06-07 |
| Lifetime allowance* |
£1,600,000 |
£1,500,000 |
| Annual allowance |
£225,000 |
£215,000 |
| Lifetime allowance charge |
55% if excess drawn as cash |
| |
25% if excess drawn as income |
| Annual allowance charge |
40% of excess |
| Maximum pension commencement lump sum* |
25% of pension benefit value |
| Maximum relievable personal contribution |
100% relevant UK earnings or
£3,600 if greater |
| *Subject to transitional protection for excess amount |
|
|
| |
| EMPLOYEE SHARE SCHEMES LIMITS |
06-08 |
| Share incentive plans contributions |
| Employer: £3,000 |
Employer matching (2:1): £3,000 |
Employee: £1,500 |
| Enterprise management incentive option value |
£100,000 |
| Savings-related share options per month |
£250 |
| Approved share option schemes |
£30,000 |
|
| |
| CAR BENEFIT FOR EMPLOYEES |
| Taxable amount based on car’s list price when new up to £80,000 |
| Charge varies according to CO2 emissions in grams per kilometre |
CO2
g/km |
%of price
06-08 |
CO2
g/km |
% of price
06-08 |
CO2
g/km |
% of price
06-08 |
| 0-144 |
15 |
175-9 |
22 |
210-4 |
29 |
| 145-9 |
16 |
180-4 |
23 |
215-9 |
30 |
| 150-4 |
17 |
185-9 |
24 |
220-4 |
31 |
| 155-9 |
18 |
190-4 |
25 |
225-9 |
32 |
| 160-4 |
19 |
195-9 |
26 |
230-4 |
33 |
| 165-9 |
20 |
200-4 |
27 |
235-9 |
34 |
| 170-4 |
21 |
205-9 |
28 |
240+ |
35 |
| Further reductions for LPG, hybrid and electric cars |
| Diesels not meeting Euro IV or registered after 31 December 2005: |
| add 3% subject to maximum charge of 35% |
| |
| Vans – for private use |
07-08 |
06-07 |
| Chargeable amount |
£3,000 |
£500* |
| *£350 if over 4 years old on 5/4/07 |
| No charge if private use is limited to journeys between home and work |
|
| |
| FUEL BENEFIT |
07-08 |
06-07 |
| Multiply the CO2 % used for the car benefit by |
£14,400 |
£14,400 |
| Vans – flat charge |
£500 |
Nil |
|
| |
| COMPANY CARS – ADVISORY RATES from 1/2/07 |
| Engine size |
Petrol |
Diesel |
LPG |
| 1,400cc or less |
9p |
9p |
6p |
| 1,401cc to 2,000cc |
11p |
9p |
7p |
| Over 2,000cc |
16p |
12p |
10p |
|
| |
| TAX-FREE MILEAGE ALLOWANCE – OWN VEHICLE |
06-08 |
| Cars |
Up to 10,000 business miles: 40p
Over 10,000 business miles: 25p |
Motorcycles
Bicycles |
24p per business mile
20p per business mile |
|
| |
| NATIONAL INSURANCE CONTRIBUTIONS |
| Class 1 Employee Not Contracted-Out of State Second Pension (S2P) |
| |
07-08 |
06-07 |
| |
Employee |
Employer |
Employee |
Employer |
| NIC rate |
11% |
12.8% |
11% |
12.8% |
| No NICs on the first |
£100 pw |
£100 pw |
£97 pw |
£97 pw |
| NICs charged up to |
£670 pw |
No limit |
£645 pw |
No limit |
| 1% NIC on earnings over |
£670 pw |
N/A |
£645 pw |
N/A |
| Certain married women |
4.85% |
12.8% |
4.85% |
12.8% |
| Contracted-Out Rebate |
|
|
|
|
| Rebate on |
£87.01-£670 pw |
£84.01-£645 pw |
| Salary-related scheme |
1.6% |
3.7% |
1.6% |
3.5% |
| Money-purchase scheme |
1.6% |
1.4% |
1.6% |
1.0% |
| Personal Pension |
No reduction |
No reduction |
| Class 1A Employer 06-08 on car fuel benefits and most other taxable benefits : |
12.8% |
| |
|
| Limits and Thresholds |
|
07-08 |
|
|
06-07 |
|
| |
Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| |
£ |
£ |
£ |
£ |
£ |
£ |
| Lower earnings limit |
87 |
377 |
4,524 |
84 |
364 |
4,368 |
| NICs start |
100 |
435 |
5,225 |
97 |
420 |
5,035 |
| Upper earnings limit |
670 |
2,904 |
34,840 |
645 |
2,795 |
33,540 |
| Low earnings threshold – S2P |
|
|
13,000 |
|
|
12,500 |
| |
|
|
|
|
|
|
| Self-Employed |
07-08 |
|
06-07 |
| Class 2 Flat rate |
£2.20 pw |
£114.40 pa |
|
£2.10 pw |
£109.20 pa |
| if earnings over |
£4,635 pa |
|
£4,465 pa |
| Class 4*On profits: |
|
|
|
| |
£5,225-£34,840 pa: 8% |
|
£5,035-£33,540 pa: 8% |
| |
Over £34,840 pa: 1% |
|
Over £33,540 pa : 1% |
| |
|
|
|
| Voluntary |
|
|
|
| Class 3 Flat rate |
£7.80 pw |
£405.60 pa |
|
£7.55 pw |
£392.60 pa |
| *Unless over state pension age on 6 April |
|
|
|
|
|
| |
| BASIC STATE PENSION |
| |
07-08 |
06-07 |
| |
Weekly |
Annual |
Weekly |
Annual |
| Single person |
£87.30 |
£4,539.60 |
£84.25 |
£4,381.00 |
| Dependant’s addition |
£52.30 |
£2,719.60 |
£50.50 |
£2,626.00 |
| Total married pension |
£139.60 |
£7,259.20 |
£134.75 |
£7,007.00 |
| Pension Credit – Standard Income Guarantee (07-08) |
| |
Single: £119.05 pw |
Married: £181.70 pw |
|
| |
| INDIVIDUAL SAVINGS ACCOUNTS (ISAs) |
| Maximum Investment |
Maxi-ISA |
Mini-ISA |
| Component |
06-08 |
06-08 |
| Cash |
£3,000 |
£3,000 |
| Stocks & shares |
balance up to £7,000 |
£4,000 |
|
| |
| CHILD TRUST FUND |
Children born after 31 August 2002 |
| Endowment: initial and age 7: £250 |
Low income families: £500 |
| Extra annual contributions from family and friends up to: |
£1,200 pa |
|
| |
| INHERITANCE TAX |
07-08 |
06-07 |
| Nil-rate band |
£300,000 |
£285,000 |
| Rate of tax on excess |
40% |
40% |
| Lifetime transfers to and from certain trusts |
20% |
20% |
| Overseas domiciled spouse/civil partner exemption |
£55,000 |
£55,000 |
| 100% relief: businesses, unlisted/AIM companies, certain farmland/buildings |
| 50% relief: certain other business assets used by qualifying businesses |
| Reduced tax charge on gifts within 7 years of death |
| Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| % of death tax charge |
100 |
80 |
60 |
40 |
20 |
| Annual exempt gifts |
£3,000 per donor |
|
£250 per donee |
|
| |
| CAPITAL GAINS TAX |
| Exemptions |
07-08 |
06-07 |
| Individuals, estates etc |
£9,200 |
£8,800 |
| Trusts generally |
£4,600 |
£4,400 |
| Chattels proceeds (5/3 excess gain is taxable) |
£6,000 |
£6,000 |
| Rates |
Individuals |
|
As savings rates |
| |
Trusts and estates |
40% |
40% |
| Taper Relief for 06-08 Percentage of gain chargeable is based on the number of complete years an asset is owned after 5/4/98 |
| Years owned |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| Business assets |
50 |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
| Other assets* |
100 |
100 |
95 |
90 |
85 |
80 |
75 |
70 |
65 |
60 |
| *One year’s extra relief for other assets owned before 17/3/98 |
|
| |
| STAMP DUTIES |
| Stamp Duty Land Tax |
| Consideration is £125,000* or less |
Nil |
| Consideration is over £125,000* and up to £250,000 |
1% |
| Consideration is over £250,000 and up to £500,000 |
3% |
| Consideration is over £500,000 |
4% |
| *£150,000 for residential properties in disadvantaged areas and all non-residential properties |
|
| Stamp Duty (including SDRT): stocks and marketable securities |
0.5% |
|
| |
| CORPORATION TAX |
Effective rate |
Effective rate |
| Profits £ |
to 31/3/08 |
to 31/3/07 |
| 0-300,000 |
20% |
19% |
| 300,001-1,500,000 |
32.5% |
32.75% |
| 1,500,001 and over |
30% |
30% |
|
| |
| MAIN CAPITAL AND OTHER ALLOWANCES |
| Plant and machinery (P&M): first year |
- medium sized firms |
40% |
| |
- small firms |
50% |
| P&M, Patent Rights, Know-How |
|
25% pa reducing balance |
| P&M Certain long life assets |
|
6% pa reducing balance |
| P&M Energy & water-efficient assets |
|
100% |
| Qualifying flat conversions |
|
100% |
| Motor cars: generally |
|
25% pa reducing balance, max. £3,000 |
| with CO2 emissions of 120g/km or less |
100% |
| Industrial and agricultural buildings, hotels, docks, dredging etc |
4% straight line |
| R&D: |
capital expenditure |
|
100% |
| |
revenue expenditure |
- small/mid-sized firms |
150% |
| |
|
- large firms |
125% |
|
| |
| VALUE ADDED TAX |
Registration level from 1/4/07: £64,000 |
| Standard rate: 17.5% |
Reduced rate, eg on domestic fuel: 5% |
| Flat rate scheme turnover limit |
£150,000 |
| Cash and annual accounting turnover limit |
£1,350,000 |
|
| |
| MAIN DUE DATES FOR TAX PAYMENT |
| Income Tax and Capital Gains Tax – Self-Assessment |
| 31 January in tax year |
} |
Normally 50% of previous year’s |
| Following 31 July |
} |
income tax, less tax deducted at source |
| Following 31 January |
|
Balance of income tax and all CGT |
| Inheritance Tax On death: normally 6 months after month of death |
| Lifetime transfer 6 April-30 September: 30 April in following year |
| Lifetime transfer 1 October-5 April: 6 months after month of transfer |
| Corporation Tax |
| Small and medium-sized companies: 9 months after accounting period |
Large companies (those paying tax at 30%): Quarterly instalments normally payable in
7th, 10th, 13th, 16th months after the start of the accounting period.
Growing companies avoid instalments where profits are £10m or less and the company
was not large for the previous year. |
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