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					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                  07/08
                              Weekly       Annual    Weekly       Annual
Single person                  £87.30    £4,716.40    £87.30    £4,539.60
Dependant's addition           £52.30    £2,826.20    £52.30       £2,719
Total married pension         £139.60    £7,542.60   £139.60    £7,259.20



Pension Credit - Standard Income Guarantee 08-09

Single: £124.05 pw       £6,450.60 pa
Married: £189.35 pw      £9,448.40 pa
Capital Gains Tax


Exemptions                                                          08/09     07/08
Individuals, estates, etc.                                         £9,600    £9,200
Trusts generally                                                   £4,800    £4,600
              5                                                    £6,000    £6,000
Chattels ( /3 taxable on excess gain proceeds)



Rates
Individuals                                                          18%       10%, 20% or 40%
Trusts and estates                                                   18%       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



                                                                 Percentage of gain chargeable is based on the number of complete
Taper Relief for 07-08:                                                                                 after 5/4/98
Years owned                                                                 1         2      3        4        5
Business Assets                                                               50      25    25      25      25
Other Assets*                                                                100      100   95      90      85
* 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      25      25      25      25
               80      75      70      65      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             CO2 % of price
                          g/km     8-Sep                g/km     8-Sep             g/km   8-Sep
                    120 or less      10                 175-9      23              220-4    32
                         121-139     15                 180-4       24             225-9      33
                           140-4     16                 185-9       25             230-4      34
                           145-9     17                 190-4       26             235-9      35
                           150-4     18                 195-9       27              240+      35
                           155-9     19                 200-4       28
                           160-4     20                 205-9       29
                           165-9     21                 210-4       30
                           170-4     22                 215-9       31


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                08/09
Chargeable amount                     £3.00
No charge if private use is limited to journeys between home and work.
um charge of 35%.
Fuel Benefit


                                                    08/09     07/08

Multiply the CO2 % used for the car benefit by:   £16,900   £14,400
Vans - flat charge                                  £500      £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            Petrol   Diesel   LPG
1,400cc or less         11p      11p     7p
1,401cc to 2,000cc      13p      11p     8p
Over 2,000cc            19p      14p     11p
Corporation Tax Rates


Profits - Effective rate   To 31/3/09   To 31/3/08
£0-£300,000                  21%          20%
£300,001-£1,500,000         29.75%       32.50%
Over £1,500,001              28%          30%
Employee Share Schemes/Limits


                                                  08/09
Share incentive plans
Employer contribution                            £3,000
Employee contribution                            £1,500
Employer matching (2:1) contribution             £3,000

Enterprise management incentive option value   £120,000

Savings-related share options per month           £250

Approved share option schemes                   £30,000
Income Tax


Rates                                                                       08/09        07/08
Starting rate on first                                               * see below        £2,230
Tax rate                                                                       n/a        10%
Basic Rate Band                                                     **    £34,800      £32,370
Tax rate                                                                     20%          22%
Basic rate on savings income                                        *        20%          20%
Higher rate of 40% on income over                                   **    £34,800      £34,600
Tax rate                                                                     40%          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                                10%          10%
                         higher rate taxpayers                            32.50%       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%

Trusts:                  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%


Pre-owned assets tax (£5,000 minimum taxable)                                        As income

Allowances that reduce taxable income
Personal allowance       under 65                                   **     £6,035       £5,225
                         65 to 74                                          £9,030       £7,550 see note 1,3
                         75 and over                                       £9,180       £7,690 see note 1,3
                         Blind person's allowance                          £1,800       £1,730

Allowances that reduce tax
Married couple's allowance (MCA)
Tax reduction            74                                          £653.50           £628.50 see note 1,2,3
                         75 and over                                 £662.50           £636.50 see note 1,2,3
The age-related allowances are progressively withdrawn if income     £21,800           £20,900
Minimum PA                                                       **   £6,035            £5,225
Minimum MCA tax reduction                                               £254              £244
Tax Shelters
Enterprise Investment Scheme (EIS) up to                            £500,000          £400,000 see note 5
Venture Capital Trust (VCT) up to                                   £200,000          £200,000
Golden Handshake max.                                                £30,000           £30,000
Rent a Room - exempt on gross annual rent up to                       £4,250            £4,250
Construction Industry Scheme deduction rate:
Standard (registered)                                                   20%               20%
Higher (not registered)                                                 30%               30%
Notes

1.   Ages are as the end of the tax year. Ages for the MCA relate to the elder of spouse or civil partner
2.   MCA is available only to those couples where at least one spouse or civil partner was born before 6 April 1935.
3.   The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £21,800 (2007/08 £20,900) u
4.   Where there are several trusts created by the same settlor, the "standard rate band" is divided equally between them, subje
5.   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                           Maxi-ISA Mini-ISA
Component                             8-Sep   7-Aug    7-Aug
Cash                                 £3,600 £3,000     £3,000
                                     balance balance
                                      up to    up to
Stocks & Shares                      £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    7-Aug
                      £312,00   £300,00
                            0         0
                         40%       40%
                         20%        20%

                      £55,000 £55,000
              businesses, unlisted/AIM
              for certain other certain
              companies, and business
              assets used by qualifying

med on the surviving spouse's/civil partner's death after 8 Oct 2007


              0-3      3-Apr     4-May    5-Jun 6-Jul
              100        80        60       40     20
                    £3,000 per donor         £250 per
Main Capital and Other Allowances


Plant & machinery 100% annual investment allowance (first year)                                 £50,000
Plant & machinery, patent rights, know-how (reducing balance) pa                                   20%
Certain long-life assets, integral features of buildings (reducing balance) pa                     10%
Industrial & agricultural buildings (straight line)                                                 3%
Energy & water- efficient investments                                                             100%
Qualifying flat conversions & business premises renovations                                       100%
Motor cars:                                CO2 emissions of 110g/km or less                       100%
                                                CO2 emissions of 111 - 165g/km                     20%
                                                CO2 emissions of 166g/km or more                   10%
R&D:                                            capital expenditure                               100%
                                                revenue expenditure – small/medium-size firms     175%
                                                                    – large firms                 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                                        Balance of income tax and all CGT

Inheritance Tax

                                           normally
                                          6 months
                                               after
                                          month of
On Death:                                    death.
                                            30 April
                                                  in
                                          following
Lifetime transfer 6 April-30 September:        year

                                          6 months
                                               after
                                          month of
Lifetime transfer 1 October-5 April:        transfer

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


                                               7-Aug      6-Jul
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 of income tax relief    5 years 5 years

Enterprise investment scheme (EIS) up to
£400,000                                         20%          20%

Minimum holding period of 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
National Insurance Contributions


Class 1 Employees Not Contracted-Out of State Second Pension (S2P)

                                                                                            2008/2009
                                                                                     Employee
NIC rate                                                                                11%
No NICs on the first                                                                 £105 pw
NICs charged up to                                                                   £770 pw
1% NIC on earnings over                                                              £770 pw
Certain married women                                                                   4.85%



Contracted-out Rebate                                                                           2008/2009
Rebate on                                                                                  £90.01 - £670 pw
Salary-related scheme                                                                   1.60%
Money-purchase scheme                                                                   1.60%
Personal Pension                                                                              No reduction


                                                                 2008/2009
Limits and Thresholds                            Weekly           Monthly            Annual
Lower earnings limit                               £90              £390              £4,680
NICs start                                        £105              £453              £5,435
Upper earnings limit                              £770             £3,337            £40,040


Class 1A Employer 06-08 on car fuel and most other taxable benefits: 12.8%


Self-employed                                                  2008/2009
Class 2                                           Flat rate    £2.30 pw £119.60 pa
                                              if earnings over £4,825 pa


Class 4                                         On profits    £5,435 - £40,000 pa: 8%
unless over state retirement age on 6th Apr
                                                              Over £40,000 pa: 1%

Voluntary
Class 3                                          Flat rate    £8.10 pw £421.20 pa
   2008/2009                         2007/2008
            Employer          Employee        Employer
               12.80%             11%                 12.80%
            £105 pw           £100 pw             £100 pw
               No Limit       £670 pw                 No Limit
                 N/A          £670 pw                   N/A
               12.80%             4.85%               12.80%



   2008/2009                              2007/2008
£90.01 - £670 pw                     £87.01 - £645 pw
               3.70%              1.60%               3.70%
               1.40%              1.60%               1.00%
  No reduction                          No reduction


                              2007/2008
               Weekly          Monthly                Annual
                 £87             £377                  £4,524
                £100             £435                  £5,225
                £670            £2,904                £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


                                                            08/09           07/08
Lifetime allowance*                                      £1,650,000       £1,600,000

Annual allowance                                          £235,000         £225,000

Lifetime allowance charge                                55% if excess is drawn as cash
                                                         25% if excess is drawn as income

Annual allowance charge                                  40% of excess

Maximum pension commencement lump sum*                   25% of pension benefit value


Maximum relievable personal conbribution                 100% of relevant UK earnings or
                                                         £3,600 if greater

* 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                                      24p per business mile

Bicycles                                         20p per business mile
Value Added Tax


Registration level from 01/4/08:              £67,000
Standard Rate                                 17.50%
Reduced rate, eg on domestic fuel                 5%
Flat rate scheme turnover limit              £150,000
Cashand annual accounting turnover limit   £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

				
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