| Tax Rates & Allowances |
2005/2006 |
2006/2007 |
2007/2008 |
| INCOME TAX |
£ |
£ |
£ |
| Basic Personal Allowance |
4895 |
5035 |
5225 |
| Personal allowance aged 65-74 |
7090 |
7280 |
7550 |
| Starting
Rate 10% |
0 - 2090 |
0-2150 |
0-2230 |
| Basic
Rate
22% |
2091-32400 |
2151-33,300 |
2231-34600 |
| Higher
Rate
40% |
Over 32400 |
Over £33,300 |
Over 34,600 |
| Dividends -Basic Rate tax |
10% |
10% |
10% |
| Dividends- Higher rate tax |
32.5% |
32.5% |
32.5% |
| TAX
FREE MILEAGE |
| Business Miles travelled in employees own
vehicle: |
First 10,000 - 40p
Over 10,000 - 25p |
First 10,000 - 40p
Over 10,000
- 25p |
First 10,000 - 40p
Over 10,000
- 25p |
| Company Vans |
< 4 years- £500
All others £350 |
<
4 years- £500
All
others £350 |
< 4 years- £3000 All others £3000 |
| NATIONAL
INSURANCE |
|
Employee
primary class 1 between primary threshold and upper earnings
limit.
|
11%
|
11%
|
11% |
| Employers secondary class 1
above secondary threshold. |
12.8% |
12.8% |
12.8% |
| Class 2 Rate |
£2.10 per week |
£2.10 Per week |
£2.20 Per week |
| Class 2 Small earning exception |
|
4465 |
4635 |
| Class 4 Lower Profits
Limit |
4345 |
5035 |
5225 |
| Class 4 Upper Profits limit |
32760 |
33540 |
34840 |
| Class 4 rate between limits +1%
above upper limit |
8% |
8% |
8% |
| CORPORATION TAX |
| Small Companies
Rate Percentage |
19% |
19% |
20% |
| Small Companies rate can be
claimed for profits not exceeding. |
£50001 -£300,000 |
£0 - £300,000 |
£0 - £300,000 |
| Marginal Rate |
£300,000-
£1500,000 |
£300,000- £1500,000 |
£300,000- £1500,000 |
| Main rate of Corporation Tax |
30% |
30% |
30% |
| Profits subject to main
Corporation Tax band |
£1500,001 or
more |
£1500,001 or more |
£1500,001 or more |
| CAPITAL GAINS TAX |
| Individual exemption |
8500 |
8800 |
9200 |
| Other Trustees |
4250 |
4400 |
4600 |
| Note: the amount
chargeable to CGT is added onto the top of income liable to income tax
for individuals. Below starting rate limit 10%, between starting and
basic 20% above the basic limit 40%. |
|
STAMP
DUTY -UK residential effective date
after 23 March 2006 |
|
Land
in the UK residential |
Land
in the UK Non Residential |
| UK residential 0% |
0-125000 |
0-150000 |
| UK residential 1% |
125000-250000 |
150000-250000 |
| UK residential 3% |
250000-500000 |
250000-500000 |
| UK residential 4% |
Over
500000 |
Over
£500000 |
|
INHERITANCE TAX |
|
285000 |
| National
Minimum Wage from 1st Oct 2007 |
£5.52 22 years & Over
£4.60 (18-21 Year olds) |
