Tax Tables

Tax Tables Tax Tables 2008-2009 Please select a tax-table by clicking on one of the heading from the list below: 1. Basic State Pension 2. Capital Gains Tax 3. Car Benefit for Employees 4. Fuel Benefit 5. Child Trust Fund 6. Company Cars - Advisory Fuel Rates 7. Corporation Tax 8. Employee Share Schemes Limits 9. Income Tax 10. Individual Savings Accounts (ISAs) 11. Inheritance Tax 12. Main Capital and Other Allowances 13. Tax Payment Due Dates 14. Main Income Tax Reliefs and Credits 15. National Insurance Contributions 16. Registered Pensions 17. Stamp Duties 18. Tax-Free Mileage Allowance 19. Value Added Tax 20. POAT Basic State Pension 08/09 Weekly Annual £87.30 £4,716.40 £52.30 £2,826.20 £139.60 £7,542.60 07/08 Weekly Annual £87.30 £4,539.60 £52.30 £2,719 £139.60 £7,259.20 Single person Dependant's addition Total married pension Pension Credit - Standard Income Guarantee 08-09 Single: £124.05 pw Married: £189.35 pw £6,450.60 pa £9,448.40 pa Capital Gains Tax Exemptions Individuals, estates, etc. Trusts generally Chattels ( /3 taxable on excess gain proceeds) 5 08/09 £9,600 £4,800 £6,000 07/08 £9,200 £4,600 £6,000 Rates Individuals Trusts and estates 18% 18% 10%, 20% or 40% 40% Entrepreneurs' Relief 2008/09: 4 /9ths of business gain (effective tax rate of 10%). Lifetime limit: £1,000,000 For trading businesses and companies (min. 5% employee/director shareholding) held for at least one year Taper Relief for 07-08: Years owned Business Assets Percentage of gain chargeable is based on the number of complete after 5/4/98 1 2 3 4 5 50 100 25 100 25 95 25 90 25 85 Other Assets* * One year's extra relief for other assets owned before 17/3/98 d on the number of complete years an asset is owned after 5/4/98 6 7 8 9 10 25 80 25 75 25 70 25 65 25 60 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 % of price CO2 % of price g/km 8-Sep g/km 8-Sep 120 or less 10 175-9 23 121-139 140-4 145-9 150-4 155-9 160-4 165-9 170-4 15 16 17 18 19 20 21 22 180-4 185-9 190-4 195-9 200-4 205-9 210-4 215-9 24 25 26 27 28 29 30 31 CO2 % of price g/km 8-Sep 220-4 32 225-9 230-4 235-9 240+ 33 34 35 35 Further reductions for LPG, hybrid and electric cars. Diesels not meeting Euro IV or registered after 31st December 2005, add 3% subject to maximum charge of 35%. Vans - for private use Chargeable amount 08/09 £3.00 No charge if private use is limited to journeys between home and work. um charge of 35%. Fuel Benefit 08/09 Multiply the CO2 % used for the car benefit by: Vans - flat charge £16,900 £500 07/08 £14,400 £500 Child Trust Fund Children born after 31 August 2002 Annual contributions from family and friends up to: £1,200pa Company Cars - Advisory Fuel Rates From 1/1/08 Engine Size 1,400cc or less 1,401cc to 2,000cc Over 2,000cc Petrol 11p 13p 19p Diesel 11p 11p 14p LPG 7p 8p 11p Corporation Tax Rates Profits - Effective rate £0-£300,000 £300,001-£1,500,000 Over £1,500,001 To 31/3/09 21% 29.75% 28% To 31/3/08 20% 32.50% 30% Employee Share Schemes/Limits 08/09 Share incentive plans Employer contribution Employee contribution Employer matching (2:1) contribution Enterprise management incentive option value Savings-related share options per month Approved share option schemes £3,000 £1,500 £3,000 £120,000 £250 £30,000 Income Tax Rates Starting rate on first Tax rate Basic Rate Band Tax rate Basic rate on savings income Higher rate of 40% on income over Tax rate 08/09 * see below ** * ** n/a £34,800 20% 20% £34,800 40% 07/08 £2,230 10% £32,370 22% 20% £34,600 40% * 10% starting rate for savings income up to £2,320. Not applicable if taxable non-savings income exceeds £2,320. ** Figures marked with a ** are based on the recent revisions to the original 2008 Budget announced by Chancellor Darling Dividends for: basic rate taxpayers higher rate taxpayers 10% 32.50% 10% 32.50% Trusts: Interest in possession trusts on all income, and other trusts on the first £1,000: dividends 10.00% 10.00% savings & other income 20% 20% Income of trusts (except interest in possession) above £1,000: dividends (rate applicable to trusts) 32.50% 32.50% other income (rate applicable to trusts) 40% 40% Trusts: Pre-owned assets tax (£5,000 minimum taxable) Allowances that reduce taxable income Personal allowance under 65 65 to 74 75 and over Blind person's allowance As income ** £6,035 £9,030 £9,180 £1,800 £5,225 £7,550 see note 1,3 £7,690 see note 1,3 £1,730 Allowances that reduce tax Married couple's allowance (MCA) Tax reduction 74 £653.50 75 and over £662.50 The age-related allowances are progressively withdrawn if income £21,800 Minimum PA ** £6,035 Minimum MCA tax reduction £254 Tax Shelters Enterprise Investment Scheme (EIS) up to £500,000 Venture Capital Trust (VCT) up to £200,000 £30,000 Golden Handshake max. £4,250 Rent a Room - exempt on gross annual rent up to Construction Industry Scheme deduction rate: Standard (registered) 20% Higher (not registered) 30% £628.50 see note 1,2,3 £636.50 see note 1,2,3 £20,900 £5,225 £244 £400,000 see note 5 £200,000 £30,000 £4,250 20% 30% Notes 1. 2. 3. 4. 5. Ages are as the end of the tax year. Ages for the MCA relate to the elder of spouse or civil partner MCA is available only to those couples where at least one spouse or civil partner was born before 6 April 1935. The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £21,800 (2007/08 £20,900) u Where there are several trusts created by the same settlor, the "standard rate band" is divided equally between them, subje Start date for 2008/09 increase is subject to European Commission approval. ncome exceeds £2,320. nnounced by Chancellor Darling first £1,000: see note 1,3 see note 1,3 see note 1,2,3 see note 1,2,3 vil partner n before 6 April 1935. over £21,800 (2007/08 £20,900) until the basic divided equally between them, subject to a minimum Individual Savings Accounts (ISAs) Maximum Investment Component Cash Stocks & Shares Maxi-ISA Mini-ISA 8-Sep 7-Aug 7-Aug £3,600 £3,000 £3,000 balance balance up to up to £7,200 £7,000 £4,000 Inheritance Tax Nil-rate band* Rate of tax on excess Lifetime transfers to and from certain trusts Overseas domiciled spouse/civil partner exemption 100% relief: 50% relief: *Up to 100% of the unused proportion of a deceased spouse's/civil partner's nil-rate band can be claimed on the surviving spou Reduced tax charge on gifts within 7 years of death Years before death % of death tax charge Annual exempt gifts 8-Sep £312,00 0 40% 20% 7-Aug £300,00 0 40% 20% £55,000 £55,000 businesses, unlisted/AIM companies, and business for certain other certain assets used by qualifying med on the surviving spouse's/civil partner's death after 8 Oct 2007 0-3 100 3-Apr 4-May 80 60 £3,000 per donor 5-Jun 6-Jul 40 20 £250 per Main Capital and Other Allowances Plant & machinery 100% annual investment allowance (first year) Plant & machinery, patent rights, know-how (reducing balance) pa Certain long-life assets, integral features of buildings (reducing balance) pa Industrial & agricultural buildings (straight line) Energy & water- efficient investments Qualifying flat conversions & business premises renovations Motor cars: CO2 emissions of 110g/km or less CO2 emissions of 111 - 165g/km CO2 emissions of 166g/km or more R&D: capital expenditure revenue expenditure – small/medium-size firms – large firms £50,000 20% 10% 3% 100% 100% 100% 20% 10% 100% 175% 130% Main Due Dates for Tax Payment Income Tax and Capital Gains Tax – Self-Assessment 31 Jan in tax year } Normally 50% of previous year's income tax, less tax deducted at source 31st July following tax year Following 31 Jan Inheritance Tax normally 6 months after month of death. 30 April in following year 6 months after month of transfer Balance of income tax and all CGT On Death: Lifetime transfer 6 April-30 September: Lifetime transfer 1 October-5 April: Corporation Tax Small and medium-sized companies: 9 months after accounting period Large companies (those paying tax at 28%/30%): Quarterly instalments normally payable in 7th, 10th, 13th, 16th months after t Growing companies avoid instalments where profits are £10m or less and the company was not large for the previous year 7th, 10th, 13th, 16th months after the start of the accounting period s not large for the previous year Main Income Tax Reliefs and Credits Personal (basic) Personal (65-74) Personal (75 & over) Married/civil partners (minimum) at 10%* Married/civil partners (under 75) at 10%* Married/civil partners (75+) at 10% Age-related reliefs reduced by 50% of income over Blind person's allowance Rent-a-room tax-free income Venture capital trust (VCT) up to £200,000 Minimum holding period of income tax relief Enterprise investment scheme (EIS) up to £400,000 Minimum holding period of income tax relief EIS eligible for Capital Gains Tax reinvestment relief 7-Aug £5,225 £7,550 £7,690 £2,440 £6,285 £6,365 6-Jul £5,035 £7,280 £7,420 £2,350 £6,065 £6,135 £20,900 £20,100 £1,730 £1,660 £4,250 £4,250 30% 30% 5 years 5 years 20% 20% 3 years 3 years No limit * Where at least one spouse/civil partner was born before 6 April 1935 National Insurance Contributions Class 1 Employees Not Contracted-Out of State Second Pension (S2P) 2008/2009 Employee NIC rate No NICs on the first NICs charged up to 1% NIC on earnings over Certain married women 11% £105 pw £770 pw £770 pw 4.85% Contracted-out Rebate Rebate on Salary-related scheme Money-purchase scheme Personal Pension 1.60% 1.60% 2008/2009 £90.01 - £670 pw No reduction Limits and Thresholds Lower earnings limit NICs start Upper earnings limit Weekly £90 £105 £770 2008/2009 Monthly £390 £453 £3,337 Annual £4,680 £5,435 £40,040 Class 1A Employer 06-08 on car fuel and most other taxable benefits: 12.8% Self-employed Class 2 2008/2009 Flat rate £2.30 pw £119.60 pa if earnings over £4,825 pa Class 4 unless over state retirement age on 6th Apr On profits £5,435 - £40,000 pa: 8% Over £40,000 pa: 1% Voluntary Class 3 Flat rate £8.10 pw £421.20 pa 2008/2009 Employer 12.80% £105 pw No Limit N/A 12.80% 2007/2008 Employee Employer 11% £100 pw £670 pw £670 pw 4.85% 12.80% £100 pw No Limit N/A 12.80% 2008/2009 £90.01 - £670 pw 3.70% 1.40% No reduction 1.60% 1.60% 2007/2008 £87.01 - £645 pw 3.70% 1.00% No reduction Weekly £87 £100 £670 2007/2008 Monthly £377 £435 £2,904 Annual £4,524 £5,225 £34,840 2007/2008 £2.20 pw £114.40 pa £4,635 pa £5,225 - £34,840 pa: 8% Over £34,840 pa: 1% £7.80 pw £405.60 pa Registered Pensions Lifetime allowance* Annual allowance Lifetime allowance charge 08/09 £1,650,000 £235,000 07/08 £1,600,000 £225,000 55% if excess is drawn as cash 25% if excess is drawn as income 40% of excess 25% of pension benefit value 100% of relevant UK earnings or £3,600 if greater Annual allowance charge Maximum pension commencement lump sum* Maximum relievable personal conbribution * Subject to transitional protection for excess amount Stamp Duties Stamp Duty Land Tax Price is £125,000* or less Nil Price is over £125,000* and up to £250,000 1% Price is over £250,000 and up to £500,000 3% Price 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 (no charge unless the duty exceeds £5) 0.50% Tax-Free Mileage Allowance - Own Vehicle 07-09 Cars Up to 10,000 business miles: 40p Over 10,000 business miles: 25p Motorcycles Bicycles 24p per business mile 20p per business mile Value Added Tax Registration level from 01/4/08: Standard Rate Reduced rate, eg on domestic fuel Flat rate scheme turnover limit Cashand annual accounting turnover limit £67,000 17.50% 5% £150,000 £1,350,000 Income tax and pre-owned assets - frequently asked questions Contents How is the benefit calculated? What is the date of valuation? What is the de minimis limit? Are there alternatives to paying the income tax charge? How do I go about unravelling the scheme or electing to have it treated as a GWR? When should I make the election? What happens if the taxpayer dies part way through the tax year, before they have made the What happens if the taxpayer dies before the start of the tax year when the charge to income tax on What happens if the taxpayer starts paying a market rent? The firm that sold me the scheme are charging me for unravelling it. Can this expense be offset Where can I find the law about income tax on pre-owned assets? Q. How is the benefit calculated? A. For land the benefit is calculated by reference to the rental value of the land. This is the rent that would have been payable if it had been let to the taxpayer at an annual open market rent. That annual value is calculated assuming the tenant undertook to pay all taxes, rates and charges usually paid by a tenant and the landlord undertook to bear the cost of repairs and insurance and any other For chattels and intangible property the charge is a percentage of the open market value of the chattel. The percentage is the official rate of interest, which was 5% for 2005/06 and 2006/07. It The value on which the benefit is calculated may be affected by contributions and disposals that the taxpayer has made on or after 18th March 1986. Contributions and disposals made before this date Q. What is the date of valuation? A. The date of valuation is 6th April in the first year of assessment or the date on which the taxpayer first becomes liable to pay the income tax charge. The income tax charge for land and chattels is based on that value for the first and the following four years of assessment. A new valuation is required after the first five years of assessment. For example, a taxpayer liable to the income tax charge for all of 2005-06 would value the property at 6th April 2005, 6th April 2010 and every five years after that for as long as they continue to benefit from the pre-owned asset. A taxpayer who becomes liable to the charge on 6th October 2007, would value the property at 6th October 2007, 6th April 2011 and every five years after that. This 5 year valuation rule only applies to land and chattels, Q. What is the de minimis limit? A. If after you have calculated the benefit it comes to £5,000 or less for the year of assessment, you do not need to declare the benefit as part of your income for that year. If it is more than £5,000 you must declare it as part of your income for that year. Note that if the benefit is more than £5000 the entire amount is taxable and there is no exemption for the first £5000. If both you and your spouse or civil partner are liable for the charge then you each have an exemption of £5000 but you cannot Q. Are there alternatives to paying the income tax charge? A. You have a number of options. Depending on what you have done to set up the arrangements that lead to you being liable to the income tax charge, you may not be able to negate completely what was done. It may be possible to take some steps which mitigate the effect of income tax on the scheme but you may want to contact the people who were involved in setting up the scheme or seek If you elect to treat the arrangement as a gift with reservation, all of the steps you have taken still operate - so if there is a trust in place, the trust still exists and when you die the property will pass under the terms of the trust. But for inheritance tax purposes the property will be treated as forming part of your estate and inheritance tax will be payable if the total chargeable value of your estate including previous lifetime gifts made in the last 7 years is more than the nil rate band and the reservation of benefit has not ended within the 7 years prior to your death. Remember that any Other options open to you are to pay a market rent for the occupation or use of the property or to pay the income tax charge. Which option will be better for you will depend on your personal Q. How do I go about unravelling the scheme or electing to have it treated as a GWR? A. How you "unravel" a scheme may have unforeseen effects and you are advised to contact the advisers who helped you set up the scheme originally. If they are not available you may want to If you want to elect to treat the property as a gift with reservation for inheritance tax, complete form IHT 500 (PDF 567K) . Guidance about how to fill out the form is given in IHT 501 (PDF 128K). Q. When should I make the election? A. You have until 31st January in the year following the first year of assessment. So if you become liable to the income tax charge for 2005-06, you will have until 31st January 2007 to make the election. If you do not make the election by then you are liable to pay income tax on the benefit from that year of assessment until you cease to benefit from the pre-owned asset or it otherwise forms Q. What happens if the taxpayer dies part way through the tax year, before they have A. The taxpayer will be liable for income tax on the benefit they derive from the pre-owned asset from the 6 April in the first year of assessment up to their date of death. It is not possible for personal representatives to make an election after the date of death and the estate will be liable to pay the income tax due up to that date (provided it is not below the de minimis limit). But the charge Q. What happens if the taxpayer dies before the start of the tax year when the charge to income tax on pre-owned assets comes into force? A. As their death means they have ceased to benefit from the pre-owned asset they will not be liable Q. What happens if the taxpayer starts paying a market rent? A. If the taxpayer is liable to the income tax charge for the year 2005-06 but from 6th April 2005 pays the legal owners of the land a full open market rent, the taxpayer ceases to be liable to the income tax charge. However, if the taxpayer later stops paying the rent or the rent paid falls below an open market rental or if the rent is paid for only part of the year, then the taxpayer is liable to income tax on the benefit he derives that is above the rental actually paid. Please note though that For example, a taxpayer agrees to pay an open market rental from 6th October 2005 for a house with a monthly rental value of £1,000. The taxpayer would be liable for income tax on the benefit derived from not paying the rental for the first six months of the year of assessment £6,000 (6 months at £1,000). But he would not be liable for income tax for the remainder of that year and the following Q. The firm that sold me the scheme are charging me for unravelling it. Can this expense be offset against the tax liability in any way? A. No. Q. Where can I find the law about income tax on pre-owned assets? A. The income tax charge on benefits received by the former owner of property is in Schedule 15 to The Charge to Income Tax by Reference to Enjoyment of Property Previously Owned Regulations 2005 (The Regulations) sets out the basis of valuation, makes further exclusions from the charge and