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| Income tax allowances
|
2004-05 (£)
|
2005-06 (£)
|
|
Personal allowance
|
4 745
|
4 895
|
| Personal allowance for people
aged 65-74 |
6 830
|
7 090
|
| Personal allowance for people
aged 75 and over |
6 950
|
7 220
|
|
Income limit for age-related allowances
|
18 900
|
19 500
|
|
Married couple's allowance for people born
before 6 April 1935
|
5 725
|
5 905
|
| Married couple's allowance
- aged 75 or more |
5 795
|
5 975
|
| Minimum amount of married couple's
allowance |
2 210
|
2 280
|
|
Blind person's allowance
|
1 560
|
1 610
|
The rate of relief for the continuing married couple's allowance and maintenance relief for people born before 6 April 1935, and for the children's tax credit, is 10%
|
Taxable bands 2004-05 (£)
|
Taxable bands 2005-06(£)
|
|
Starting rate 10%
|
0 - 2 020
|
Starting rate 10%
|
0 - 2,090
|
|
Basic rate 22%
|
2 021 - 31 400
|
Basic rate 22%
|
2,090 - 32,400
|
|
Higher rate 40%
|
Over 31 400
|
Higher rate 40%
|
over 32,400
|
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| £
per week |
2004-05
|
2005-06
|
| Lower earnings
limit, primary Class 1 |
£79
|
£82
|
| Upper earnings
limit, primary Class 1 |
£610
|
£630
|
| Primary threshold
|
£91
|
£94
|
| Secondary threshold |
£91
|
£94
|
| Employees’ primary
Class 1 rate between primary threshold
and upper earnings limit |
11%
|
11%
|
| Employees’ primary
Class 1 rate above upper earnings limit
|
1%
|
1%
|
| Employees’ contracted-out
rebate |
1.6%
|
1.6%
|
| Married women’s
reduced rate between primary threshold
and upper earnings limit |
4.85%
|
4.85%
|
| Married women’s
rate above upper earnings limit |
1%
|
1%
|
| Employers’ secondary
Class 1 rate above secondary threshold |
12.8%
|
12.8%
|
| Employers’ contracted-out
rebate, salary-related schemes |
3.5%
|
3.5%
|
| Employers’ contracted-out
rebate, money-purchase schemes |
1%
|
1%
|
| Class 2 rate |
£2.05
|
£2.10
|
| Class 2 small earnings
exception |
£4,215 per
year
|
£4,345 per
year
|
| Special Class 2 rate
for share fishermen |
£2.70
|
£2.75
|
| Special Class 2 rate
for volunteer development workers |
£3.95
|
£4.10
|
| Class 3 rate |
£7.15
|
£7.35
|
| Class 4 lower profits
limit |
£4,745 per
year
|
£4,895 per
year
|
| Class 4 upper profits
limit |
£31,720 per
year
|
£32,760 per year
|
| Class 4 rate between
lower profits limit and upper profits
limit |
8%
|
8%
|
Class 4 rate above upper profits limit |
1%
|
1%
|
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| Annual exempt
amount |
2003-04 (£)
|
2004-05 (£)
|
2005-06 (£) |
| Individuals etc* |
7 900
|
8 200
|
8 500
|
| Other trustees |
3 950
|
4 100
|
4 250
|
* Individuals,
trustees of settlements
for the disabled,
and personal representatives
of the estate
of a deceased
person.
The amount chargeable
to CGT is added
onto the top of
income liable
to income tax
for individuals
and is charged
to CGT at these
rates:
below the
starting rate
limit at 10%,
between the
starting rate
and basic rate
limits at 20%,
and above
the basic rate
limit at 40%.
Indexation
allowance
Individuals and
others within
the charge to
capital gains
tax are not entitled
to indexation
allowance for
any period after
April 1998. To
calculate indexation
allowance up to
April 1998 on
disposals on or
after 6 April
1998, use the
table below.
You work out
the indexation
allowance by multiplying
the amount you
spent by the indexation
factor.
|
Month
|
|
Year
|
Jan
|
Feb
|
Mar
|
Apr
|
May
|
Jun
|
Jul
|
Aug
|
Sep
|
Oct
|
Nov
|
Dec
|
|
1982
|
|
|
1.047
|
1.006
|
0.992
|
0.987
|
0.986
|
0.985
|
0.987
|
0.977
|
0.967
|
0.971
|
|
1983
|
0.968
|
0.960
|
0.956
|
0.929
|
0.921
|
0.917
|
0.906
|
0.898
|
0.889
|
0.883
|
0.876
|
0.871
|
|
1984
|
0.872
|
0.865
|
0.859
|
0.834
|
0.828
|
0.823
|
0.825
|
0.808
|
0.804
|
0.793
|
0.788
|
0.789
|
|
1985
|
0.783
|
0.769
|
0.752
|
0.716
|
0.708
|
0.704
|
0.707
|
0.703
|
0.704
|
0.701
|
0.695
|
0.693
|
|
1986
|
0.689
|
0.683
|
0.681
|
0.665
|
0.662
|
0.663
|
0.667
|
0.662
|
0.654
|
0.652
|
0.638
|
0.632
|
|
1987
|
0.626
|
0.620
|
0.616
|
0.597
|
0.596
|
0.596
|
0.597
|
0.593
|
0.588
|
0.580
|
0.573
|
0.574
|
|
1988
|
0.574
|
0.568
|
0.562
|
0.537
|
0.531
|
0.525
|
0.524
|
0.507
|
0.500
|
0.485
|
0.478
|
0.474
|
|
1989
|
0.465
|
0.454
|
0.448
|
0.423
|
0.414
|
0.409
|
0.408
|
0.404
|
0.395
|
0.384
|
0.372
|
0.369
|
|
1990
|
0.361
|
0.353
|
0.339
|
0.300
|
0.288
|
0.283
|
0.282
|
0.269
|
0.258
|
0.248
|
0.251
|
0.252
|
|
1991
|
0.249
|
0.242
|
0.237
|
0.222
|
0.218
|
0.213
|
0.215
|
0.213
|
0.208
|
0.204
|
0.199
|
0.198
|
|
1992
|
0.199
|
0.193
|
0.189
|
0.171
|
0.167
|
0.167
|
0.171
|
0.171
|
0.166
|
0.162
|
0.164
|
0.168
|
|
1993
|
0.179
|
0.171
|
0.167
|
0.156
|
0.152
|
0.153
|
0.156
|
0.151
|
0.146
|
0.147
|
0.148
|
0.146
|
|
1994
|
0.151
|
0.144
|
0.141
|
0.128
|
0.124
|
0.124
|
0.129
|
0.124
|
0.121
|
0.120
|
0.119
|
0.114
|
|
1995
|
0.114
|
0.107
|
0.102
|
0.091
|
0.087
|
0.085
|
0.091
|
0.085
|
0.080
|
0.085
|
0.085
|
0.079
|
|
1996
|
0.083
|
0.078
|
0.073
|
0.066
|
0.063
|
0.063
|
0.067
|
0.062
|
0.057
|
0.057
|
0.057
|
0.053
|
|
1997
|
0.053
|
0.049
|
0.046
|
0.040
|
0.036
|
0.032
|
0.032
|
0.026
|
0.021
|
0.019
|
0.019
|
0.016
|
|
1998
|
0.019
|
0.014
|
0.011
|
|
|
|
|
|
|
|
|
|
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| Inheritance
tax threshold |
2003-04 (£)
|
2004-05 (£)
|
2005-06 (£)
|
|
|
255 000
|
263 000
|
275 000
|
The value of estates above the threshold is taxed at
40%.
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The 10% starting rate of Income Tax includes savings income. Where an individual has savings income in excess of the starting rate limit they will be taxed at the lower rate of 20% up to the basic rate limit and at the higher rate of 40% for income above the basic rate limit.
The rates of tax for dividends are 10% for income up to the basic rate limit and 32.5% for income above the basic rate limit.
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|
Tax Year
|
Amount (£)
|
|
1989-90
|
60,000
|
|
1990-91
|
64,800
|
|
1991-92
|
71,400
|
|
1992-93
|
75,000
|
|
1993-94
|
75,000
|
|
1994-95
|
76,800
|
|
1995-96
|
78,600
|
|
1996-97
|
82,200
|
|
1997-98
|
84,000
|
|
1998-99
|
87,600
|
|
1999-00
|
90,600
|
|
2000-01
|
91,800
|
|
2001-02
|
95,400
|
|
2002-03
|
97,200
|
|
2003-04
|
99,000
|
|
2004-05
|
102,000
|
|
2005-06
|
105,600
|
The main effect of the cap is to set a ceiling on the
contributions that can be paid to, and the benefits that can be paid by,
tax approved pension schemes. It generally applies to people who contribute
to a personal pension scheme, joined an occupational scheme set up since
14 March 1989, or joined any occupational scheme from 1 June 1989, which
was set up before 14 March 1989. From 6 April 2001 the cap will apply
to people who contribute to stakeholder pension schemes.
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| From 2002-2003 |
First 10,000 business miles in the tax year
|
Each mile over 10,000 miles in the tax year
|
|
Cars and vans
|
40p
|
25p
|
|
Motor cycles
|
24p
|
24p
|
|
Bicycles
|
20p
|
20p
|
Fuel Scale Charges
Company car fuel
To calculate the benefit charge on free fuel the percentage figure
will be multiplied against a set figure for the year. From
2003-04 the set figure is £14,400
Example:
If car benefit percentage is 23%, the fuel benefit would be £14,400 x 23% = £3,312
Company car tax
The CO2 emissions qualifying for the minimum petrol percentage (15%)
charge are:
2004-05 145 grams per kilometre of CO2
2005-06 140 grams per kilometre of CO2
2006-07 140 grams per kilometre of CO2
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Working and Child Tax Credits rates
|
£ per year
(unless stated)
|
2004-05
|
2005-06
|
|
Working Tax Credit
|
|
Basic element
|
£1,570
|
£1,620
|
|
Couple and lone parent element
|
£1,545
|
£1,595
|
|
30 hour element
|
£640
|
£660
|
|
Disabled worker element
|
£2,100
|
£2,165
|
|
Severe disability element
|
£890
|
£920
|
|
50+ Return to work payment
(16-29 hours)
|
£1,075
|
£1,110
|
|
50+ Return to work payment
(30+ hours)
|
£1,610
|
£1,660
|
|
Childcare element
of the Working Tax Credit
|
|
Maximum eligible cost for
one child
|
£135 per week
|
£175 per week
|
|
Maximum eligible cost for
two or more children
|
£200 per week
|
£300 per week
|
|
Percentage of eligible costs
covered
|
70%
|
70%
|
|
Child Tax Credit Family
element
|
£545
|
£545
|
|
Family element, baby addition
|
£545
|
£545
|
|
Child element
|
£1,625
|
£1,690
|
|
Disabled child element
|
£2,215
|
£2,285
|
|
Severely disabled child
element
|
£890
|
£920
|
|
Income thresholds
and withdrawal rates
|
|
First income threshold
|
£5,060
|
£5,220
|
|
First withdrawal rate (per
cent)
|
37%
|
37%
|
|
Second income threshold
|
£50,000
|
£50,000
|
|
Second withdrawal rate (per
cent)
|
6.67%
|
6.67%
|
|
First threshold for those
entitled to Child Tax Credit only
|
£13,480
|
£13,910
|
|
Income disregard
|
£2,500
|
£2,500
|
Child Benefit/Guardian Allowance
|
£ per week
|
2004-05
|
2005-06
|
|
Eldest/Only Child
|
£16.50
|
£17.00
|
|
Other Children
|
£11.05
|
£11.40
|
|
Eldest/Only Child (Lone
Parent Rate)
|
£17.55
|
£17.55
|
|
Guardian’s Allowance
|
£11.85
|
£12.20
|
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|
£ per year
(unless stated)
|
2004-05
|
2005-06
|
|
Starting rate: 0%
|
£0 – £10,000
|
£0 – £10,000
|
|
Marginal relief
|
£10,001 – £50,000
|
£10,001 – £50,000
|
|
Small companies’ rate:
19%
|
£50,001–£300,000
|
£50,001–£300,000
|
|
Marginal relief
|
£300,001–£1,500,000
|
£300,001–£1,500,000
|
|
Main rate: 30%
|
£1,500,001 or more
|
£1,500,001 or more
|
|
Non-corporate distribution
rate
|
19%
|
19%
|
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Disclaimer
The above tax tables are for guidance only and professional advice should be obtained before their use as no responsibility can be accepted for loss occasioned as a result of action taken or refrained from in consequence the contents of these tables.
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|