Tax Allowances (April 2008)
The following tables show the main tax rates and allowances that individuals
and companies will encounter.
Income Tax Rates
| |
2008/09 |
2007/08 |
| Starting rate band |
* see below |
£2,230 |
| Tax rate |
10% |
10% |
| Basic rate band |
£36,000 |
£32,370 |
| Basic rate |
20% |
22% |
| Savings rate |
* see below |
20% |
| Dividend ordinary rate |
10% |
10% |
| Higher rate - income over |
£36000 |
£34,600 |
| Tax rate excluding dividends |
40% |
40% |
| Dividend upper rate |
32.5% |
32.5% |
* 10% starting rate for savings income up to £2,320. Not applicable if taxable non-savings income exceeds £2,320.
Personal allowances (ages are as at the end of the tax year)
| |
|
2008/09 |
2007/08 |
| Allowances that reduce taxable income |
|
£ |
£ |
| Personal Allowance |
under 65 |
5,435 |
5,225 |
| |
65 to 74* |
9,030 |
7,550 |
| |
75 & over* |
9,180 |
7,690 |
| |
minimum |
5,435 |
5,225 |
| Allowances that reduce tax |
|
|
|
| Married Couples Allowance (MCA) |
|
|
|
| --> age of elder partner: |
74* |
653.50 |
628.50 |
| |
75 & over* |
662.50 |
636.50 |
| |
minimum |
254.00 |
244.00 |
* Higher allowances for those aged 65 or more are scaled back when income exceeds £21,800 (2007/08 £20,900). MCA is only available where are least one partner was born before 6 April 1935.
Car and Fuel Benefits
| Business miles |
Petrol |
Diesel |
| Car charge based on % of list price when car was new |
|
|
| Emissions less than 120gms/hm |
10% |
13% |
| Emissions greater than 235gms/hm |
35% |
35% |
| Van benefit per vehicle |
£3,000 |
£3,000 |
| Fuel |
|
|
| As above based on a cost ot £16,900 |
|
|
| Authorised Milage Rates 2008/09 |
First 10,000 miles |
> 10,000 miles |
| Car/van |
40p |
25p |
| Motorcyle |
24p |
24p |
| Bicycle |
20p |
20p
|
Capital Gains Tax
| |
2008/09 |
2007/08 |
| Individuals (exemption) |
£9,600 |
£9,200 |
Value Added Tax
| From: |
01/04/08 |
01/04/07 |
| Standard rate |
17.5% |
17.5% |
| VAT fraction |
7/47 |
7/47 |
Corporation Tax
| Financial year to |
31/03/09 |
31/03/08 |
| Taxable profits |
|
|
| First £300,000 |
21% |
20% |
| Next £1,200,000 |
29.75% |
32.5% |
| Over £1,500,000 |
28% |
30% |
Note: the small companies rate of corporation tax will increase from 21% to 22% in 2009/10.
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tax allowances