AIIT EXAMINATIONS DECEMBER 2005 TAX TABLES
Income Tax rates Starting rate Basic rate Higher rate Flat rate for trusts 2004-05 % 10 22 40 40 £ 1 - 2,020 2,021 - 31,400 2003-04 % 10 22 40 34 £ 1 - 1,960 1,961 - 30,500
Starting rate band Basic rate band
Savings income other than dividend income is taxed at 10%, 20% or 40%. Dividend income is taxed at 10% or 32.5% . Income Tax reliefs Personal allowance – age 65–74 – age 75 or over Married couple’s allowance (1) (2) – age under 75 – age 75 or over – Maximum income before abatement of relief - £1 for £2 – Minimum allowance Blind person’s allowance ‘Rent-a-room’ limit 2004-05 £ 4,745 6,830 6,950 5,725 5,795 18,900 2,210 1,560 4,250 2003-04 £ 4,615 6,610 6,720 5,565 5,635 18,300 2,150 1,510 4,250
Note (1) Relief restricted to 10% (2) MCA only available where at least one spouse was born before 6 April 1935 Child Tax Credit 2004/05 Family element Baby element Child element Working tax credit Element Maximum annual amount £ 545 545 1,625 Maximum annual amount £ 1,570 1,545 640 £135 per week £200 per week 70%
(one per family) (child under one year) (in addition to baby element, paid for each child)
Basic element Couple's and lone parent element 30 hour element Childcare element maximum eligible cost
(one per single claimant or couple) (in addition to basic, one per couple) (in addition to other elements, one per couple)
(if one child in registered childcare) (if two children in registered childcare) % of eligible childcare costs covered Notes 1 2. 3.
If entitled to only CTC and (combined) income > £13,480 then the maximum amount of credits will be reduced by 37% of the amount of income over £13,480. If entitled to WTC only or both CTC and WTC and (combined) income > £5,060 then the maximum amount of credits will be reduced by 37% of the amount of income over £5,060. Only family (and baby element) of CTC available if (combined) income >£50,000. These elements are reduced by 1/15 of income in excess of £50,000.
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Income Tax – Pension contributions Personal pension premiums Age % Up to 35 17.5 36–45 20 46–50 25 51–55 30 56–60 35 61 or over 40 Age is taken at the start of the fiscal year Pension Plan earnings cap Stakeholder pension limit Company cars and fuel Company cars Cash equivalent Retirement annuity premiums Age %
Up to 50 51–55 56–60 61 or over
17.5 20.0 22.5 27.5
2004-05: £102,000 2004-05: £3,600
2003-04: £99,000 2003-04: £3,600
15% of list price for cars emitting 145g/km (2004/05) , 155g/km (2003/04) Increased by 1% per 5g/km over the 145g/km/155g/km limit Capped at 35% of list price 3% supplement on diesel cars not meeting the Euro IV emission standards (subject to 35% cap)
Cars registered before 1 January 1998 Cash equivalent: 15% of list price if engine size no greater than 1,400 cc 22% of list price if engine size greater than 1,400 cc and less than 2,000 cc 32% of list price if engine size no less than 2,000 cc Van scale charge £500 (reduced to £350 if more than four years old at the end of the fiscal year) Fuel scale benefits For 2004-05 (& 2003-04) the benefit is £14,400 multiplied by the percentage used in calculating the car benefit (ie based on carbon dioxide emission rating). Inland Revenue Authorised Mileage Rates 2003-04 and 2004-05 First 10,000 business miles Additional business miles 40p 25p 24p 20p 5p
Vehicles Car or van * Motorcycles Bicycles Passenger payments
* For NIC purposes, a rate of 40p applies irrespective of mileage. Value Added Tax Standard rate Annual registration limit De-registration limit 10 April 2003 – 31 March 2004 From 1 April 2004 10 April 2003 – 31 March 2004 From 1 April 2004 Post 31.3.04 £ 660,000 825,000 17½% £56,000 £58,000 £54,000 £56,000 Pre 1.4.04 £ 600,000 750,000
Annual accounting / cash accounting Turnover threshold to join scheme Turnover threshold to leave scheme
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Capital allowances Principal writing down allowance rates Plant and machinery, patent rights and know-how Industrial buildings and Agricultural buildings Long life assets First year allowances available Small-sized businesses Medium-sized businesses
(1)
25% 4% 6% Post 5.4.04 (1) 50% 40%
2.7.98 – 5.4.04 40% 40%
50% rate applies from 1 April 2004 for companies.
Small sized businesses 100% on computers and related equipment acquired between 1 April 2000 and 31 March 2004 First year allowances available to all businesses 100% on Energy Saving Plant acquired from 1 April 2001 (extended definition from 17 April 2002) and on designated water efficient plant from 1 April 2003 100% on cars registered between 16 April 2002 and 31 March 2008 if the car either emits not more than 120g/km of C02 or it is electronically propelled. Small and medium sized enterprise limits (i) Turnover (ii) Balance sheet assets (iii) Employees Small ≤ £5.6m (£2.8m) ≤ £2.8m (£1.4m) ≤ 50 Medium ≤ £22.8m (£11.2m) ≤ £11.4m (£5.6m) ≤ 250
Note: The figures in brackets apply to accounting periods ending prior to 30 January 2004 Corporation Tax Financial year Full rate Small companies’ rate Starting rate Profit limit for lower rate Profit limit for lower rate marginal relief Profit limit for small companies’ rate Profit limit for small companies’ marginal relief Marginal relief fraction for profits between £10,000 and £50,000 Marginal relief fraction for profits between £300,000 and £1,500,000
2003 and 2004 30% 19% 0% £10,000 £50,000 £300,000 £1,500,000 19/400
11/400
From 1 April 2004 there is a minimum corporation tax charge of 19% on PCTCT distributed to non corporate shareholders. Research and Development expenditure: small enterprise limits Employees Turnover Balance sheet assets 250 €40m (£25m) €25m (£17m)
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National Insurance contributions Class 1 contributions Lower earnings limit Earnings threshold Upper earnings limit 2004-05 Annual Weekly £4,108 £79 £4,745 £91 £31,720 £610 2003-04 Annual Weekly £4,004 £77 £4,615 £89 £30,940 £595
Employee’s contributions in 2004-05 (2003-04) Not contracted out: 11% (11%) on earnings between £91 (£89) and £610 (£595) 1% (1%) above £610 (£595) per week Contracted out: 9.4% (9.4%) on earnings between £91 (£89) and £610 (£595) 1% (1%) on earnings above £610 (£595) per week 1.6% rebate on earnings between £79 (£77) and £91 (£89) Employer’s contributions in 2004-05 (2003-04) Not contracted out: 12.8% (12.8%) on earnings in excess of £91 (£89) Contracted out: Salary related: 9.3% (9.3%) on earnings between £91 (£89) and £610 (£595) 12.8% (12.8%) on earnings in excess of £610 (£595) 3.5% (3.5%) rebate on earnings between £79 (£77) and £91 (£89) Contracted out: Money purchase 11.8% (11.8%) on earnings between £91 (£89) and £610 (£595) 12.8% (12.8%) on earnings in excess of £610 (£595) 1% rebate on earnings between £79 (£77) and £91 (£89) 2004-05 Class 1A contributions Class 1B contributions Class 2 contributions Normal rate Small earnings exception Class 3 contributions Class 4 contributions Annual lower earnings limit Annual upper earnings limit Percentage rate between limits Percentage rate above upper limit Capital gains tax 2004-05 Annual exempt amount CGT rates for individuals Falling in: Starting rate band Basic rate band Higher rate band CGT rate for trusts Taper relief: Disposals in 2003/04 and 2004/05 Percentage of gain chargeable Number of whole years in qualifying period Less than 1 1 2 3 4 5 6 7 Business assets 100% 50% 25% 25% 25% 25% 25% N/A Non-business assets 100% 100% 100% 95% 90% 85% 80% 75% £8,200 10% 20% 40% 40% 2003-04 £7,900 10% 20% 40% 34% 12.8% 12.8% £2.05 pw £4,215 pa £7.15 pw £4,745 £31,720 8% 1% 2003-04 12.8% 12.8% £2.00 pw £4,095 pa £6.95 pw £4,615 £30,940 8% 1%
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Lease percentage table Years 50 or more 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 Retail Prices Index Where Retail Price Indices are required, it should be assumed that they are as follows: Jan 1982 82.61 1983 86.84 1984 91.20 1985 96.25 1986 100.0 1987 103.3 1988 111.0 1989 119.5 1990 130.2 1991 135.6 1992 137.9 1993 141.3 1994 146.0 1995 150.2 1996 154.4 1997 159.5 1998 163.4 1999 166.6 2000 171.1 2001 173.3 2002 178.4 2003 2004* 183.1 2005* 186.0 * = assumed Feb 82.97 87.20 91.94 96.60 100.4 103.7 111.8 120.2 130.9 136.3 138.8 142.1 146.9 150.9 155.0 160.3 163.7 167.5 172.0 173.8 179.3 183.8 186.2 Mar 79.44 83.12 87.48 92.80 96.73 100.6 104.1 112.3 121.4 131.4 136.7 139.3 142.5 147.5 151.5 155.4 160.8 164.1 168.4 172.2 174.5 179.9 184.0 186.4 Apr 81.04 84.28 88.64 94.78 97.67 101.8 105.8 114.3 125.1 133.1 138.8 140.6 144.2 149.0 152.6 156.3 162.6 165.2 170.1 173.1 175.7 181.2 184.2 186.6 May 81.62 84.64 88.97 95.21 97.85 101.9 106.2 115.0 126.2 133.5 139.3 141.1 144.7 149.6 152.9 156.9 163.5 165.6 170.7 174.2 176.2 181.5 184.4 186.8 Jun 81.85 84.84 89.20 95.41 97.79 101.9 106.6 115.4 126.7 134.1 139.3 141.0 144.7 149.8 153.0 157.5 163.4 165.6 171.1 174.4 176.2 181.3 184.6 187.0 Jul 81.88 85.30 89.10 95.23 97.52 101.8 106.7 115.5 126.8 133.8 138.8 140.7 144.0 149.1 152.4 157.5 163.0 165.1 170.5 173.3 175.9 181.3 184.8 187.2 Aug 81.90 85.68 89.94 95.49 97.82 102.1 107.9 115.8 128.1 134.1 138.9 141.3 144.7 149.9 153.1 158.5 163.7 165.5 170.5 174.0 176.4 181.6 185.0 187.4 Sep 81.85 86.06 90.11 95.44 98.30 102.4 108.4 116.6 129.3 134.6 139.4 141.9 145.0 150.6 153.8 159.3 164.4 166.2 171.7 174.6 177.6 182.5 185.2 187.6 Oct 82.26 86.36 90.67 95.59 98.45 102.9 109.5 117.5 130.3 135.1 139.9 141.8 145.2 149.8 153.8 159.5 164.5 166.5 171.6 174.3 177.9 182.6 185.4 187.8 Nov 82.66 86.67 90.95 95.92 99.29 103.4 110.0 118.5 130.0 135.6 139.7 141.6 145.3 149.8 153.9 159.6 164.4 166.7 172.1 173.6 178.2 182.7 185.6 188.0 Dec 82.51 86.89 90.87 96.05 99.62 103.3 110.3 118.8 129.9 135.7 139.2 141.9 146.0 150.7 154.4 160.0 164.4 167.3 172.2 173.4 178.5 183.5 185.8 188.2 Percentage 100.000 99.657 99.289 98.902 98.490 98.059 97.595 97.107 96.593 96.041 95.457 94.842 94.189 93.497 92.761 91.981 91.156 Years 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 Percentage 90.280 89.354 88.371 87.330 86.226 85.053 83.816 82.496 81.100 79.622 78.055 76.399 74.635 72.770 70.791 68.697 66.470 Years 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Percentage 64.116 61.617 58.971 56.167 53.191 50.038 46.695 43.154 39.399 35.414 31.195 26.722 21.983 16.959 11.629 5.983 0.000
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Stamp Duty Shares 0.5%
Stamp duty land tax Rate (%) Zero 1 3 4 All land in the UK Residential Non-residential £60,000 £150,000 Over £60,000 Over £150,000 250,000 250,000 Over £250,000 Over £250,000 500,000 500,000 Over £500,000 Over £500,000 Land in disadvantaged areas Residential Non-residential £150,000 All Over £150,000 250,000 Over £250,000 500,000 Over £500,000
Property that is not land, shares or interests in partnerships will no longer be subject to stamp duty. New leases - duty on rent Rate (%) Zero 1% Net present value of rent Residential Non-residential Up to £60,000 Up to £150,000 Excess over £60,000 Excess over £150,000
Duty on premium is the same as for transfer of land (except special rules apply for premium where rent exceeds £600 annually). NB FA 2005 changes 1. Zero band for residential property increased from £60,000 to £120,000 with effect from 17.3.05 2. Relief for non-residential property in disadvantaged area abolished from 17.3.05.
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