TAX TABLES 2008/09
Income Tax rates Starting rate (1) Starting rate for savings income (2) Basic rate Higher rate(2) Trust rate Starting rate band Savings income starting rate band (1) Basic rate band Standard rate band for trusts
Notes (1) (2)
2008-09 % n/a 10 20 40 40 £ n/a 1 – 2,320 1 – 34,800 1,000
2007-08 % 10 n/a 22 40 40 £ 1 – 2,230 n/a 2,231 – 34,600 1,000
Savings income is taxed at 10%, 20% or 40%. In 2008-09, if an individual’s taxable non-savings income exceeds £2,320, the 10% starting rate for savings will not apply. 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 Enterprise investment scheme relief limit (3) Venture capital trust relief limit ( 4) Employer supported childcare
Notes (1) (3) Relief restricted to 10% (2) Relief at 20% (4)
2008-09 £ 6,035 9,030 9,180 6,535 6,625 21,800 2,540 1,800 4,250 500,000 200,000 £55 per week
2007-08 £ 5,225 7,550 7,690 6,285 6,365 20,900 2,440 1,730 4,250 400,000 200,000 £55 per week
Only available where at least one partner was born before 6 April 1935 Relief at 30%
Child Tax Credit Family element Baby element Child element Working Tax Credit Basic element (one per single claimant or couple) Couple' and lone s parent element (in addition to basic, one per couple) 30 hour element (in addition to other elements, one per couple) Childcare element (if one child in registered childcare) maximum eligible cost (if two children in registered childcare) % of eligible childcare costs covered
Notes (1) (2) (3) (4)
(one per family) (child under one year) (in addition to baby element, paid for each child)
2008-09 £ 545 545 2,085 2008-09 £ 1,800 1,770 735 £175 pw £300 pw 80%
2007-08 £ 545 545 1,845 2007-08 £ 1,730 1,700 705 £175 pw £300 pw 80%
If entitled to only CTC and (combined) income > £15,575 (£14,495 – 2007-08) then the maximum amount of credits will be reduced by 39% (37% – 2007-08) of the excess income. If entitled to WTC only or both CTC and WTC and (combined) income > £6,420 (£5,220 – 2007-08) then the maximum amount of credits will be reduced by 39% (37% – 2007-08) of the excess income. 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. Income disregard £25,000. The disregard is the amount by which the claimant' income can s increase, compared with the previous year, before their tax credit award is recalculated.
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Income tax – Pension contributions Annual allowance £ 215,000 225,000 235,000 245,000 255,000 Lifetime allowance £ 1,500,000 1,600,000 1,650,000 1,750,000 1,800,000 £3,600
2006-07 2007-08 2008-09 2009-10 2010-11
Basic amount qualifying for tax relief Company cars and fuel Company cars Cash equivalent
15% of list price for cars emitting 135g/km (2007-08 140 g/km) increased by 1% per 5g/km over the limit Capped at 35% of list price 10% of list price for cars emitting 120g/km or less (2007-08 n/a) 3% supplement on diesel cars 9% of list price for electric cars
Van scale charge £3,000 (2008-09 and 2007-08) Fuel scale benefits for private fuel Cars Vans For 2008-09 the benefit is £16,900 (2007-08 £14,400) multiplied by the percentage used in calculating the car benefit £500 (2008-09 and 2007-08) 2008-09 6.25% 2007-08 6.25%
Official rate of interest ITEPA Mileage Rates Vehicles (1) Car or van Motorcycles Bicycles Passenger payments
Note (1)
First 10,000 business miles Additional business miles
2008-09 and 2007-08 40p 25p 24p 20p 5p
For NIC purposes, a rate of 40p applies irrespective of mileage.
Value Added Tax Standard rate Annual registration limit De-registration limit Cash accounting Turnover threshold to join scheme Turnover threshold to leave scheme Annual accounting Turnover threshold to join the scheme Turnover threshold to leave the scheme From 1 April 2007 From 1 April 2008 From 1 April 2007 From 1 April 2008 17½% £64,000 £67,000 £62,000 £65,000 £ 1,350,000 1,600,000 £ 1,350,000 1,600,000
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Capital allowances (1) Principal writing down allowance rates Annual investment allowance(2) Plant and machinery, patent rights and know-how Integral features/long life assets Industrial buildings and agricultural buildings 6.4.08 – 5.4.09 100% 20% 10% 3%
(1)
6.4.07 – 5.4.08 25% 6% 4%
First year allowances available to certain businesses/companies 6.4.06-5.4.08 Small-sized businesses/companies 50% Medium-sized businesses/companies 40%
Notes (1) Dates for companies are 1 April - 31 March rather than 6 April - 5 April
(2) 100% on the first £50,000 of investment in plant and machinery (except cars)
Small and medium sized business/company limits (i) Turnover (ii) Balance sheet assets (iii) Employees
Small £5.6m £2.8m 50
Medium £22.8m £11.4m 250
A business/company must meet 2 of the 3 criteria listed in this year and the previous year to qualify as small or medium sized. 100% first year allowances available to all businesses On new Energy Saving Plant and Water Efficient Plant On new cars registered between 16 April 2002 and 31 March 2013 if the car either emits not more than 110 g/km (120g/km prior to 1 April 2008) of C02 or it is electrically propelled. On the renovation or conversion of vacant business premises, in any of the disadvantaged areas of the UK designated as Enterprise Areas, for the purpose of bringing those premises back into business use (the Business Premises Renovation Allowance). On the costs of converting or renovating an empty or under-used space above a commercial property into qualifying residential accommodation (Flat Conversion Allowances). On capital expenditure incurred by a person on research and development (Research and Development Allowances). Corporation Tax Financial year Full rate Small companies' rate Profit limit for small companies' rate Profit limit for small companies' marginal relief Marginal relief fraction for profits between £300,000 and £1,500,000 Research and Development expenditure From 1.1.05 Employees Turnover Balance sheet assets 250 50m 43m 2008 28% 21% £300,000 £1,500,000 7/400 2007 30% 20% £300,000 £1,500,000 1/40
SMEs
With EU approval 500 100m 86m
SMEs must meet the employees criteria and either the turnover or the balance sheet assets criteria.
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National Insurance contributions
2008-09 Class 1 contributions Lower earnings limit Earnings threshold Upper earnings limit Annual £4,680 £5,435 £40,040 Weekly £90 £105 £770 Annual £4,524 £5,225 £34,840 2007-08 Weekly £87 £100 £670
Employee’s contributions in 2008-09 (2007-08) Not contracted out: 11% (11%) on earnings between £105 (£100) and £770 (£670) 1% (1%) above £770 (£670) per week Contracted out: 9.4% (9.4%) on earnings between £105 (£100) and £770 (£670) 1% (1%) on earnings above £770 (£670) per week 1.6% rebate on earnings between £90 (£87) and £105 (£100) Employer’s contributions in 2008-09 (2007-08) Not contracted out: 12.8% (12.8%) on earnings in excess of £105 (£100) Contracted out: Salary related: 9.1% (9.1%) on earnings between £105 (£100) and £770 (£670) 12.8% (12.8%) on earnings in excess of £770 (£670) 3.7% (3.7%) rebate on earnings between £90 (£87) and £105 (£100) Money purchase: 11.4% (11.4%) on earnings between £105 (£100) and £770 (£670) 12.8% (12.8%) on earnings in excess of £770 (£670) 1.4% (1.4%) rebate on earnings between £90 (£87) and £105 (£100) 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 Annual exempt amount CGT rates for individuals CGT rate for trusts Taper relief: Disposals in 2007-08
Number of whole years in qualifying period Less than 1 1 2 3 4 5 6 7 8 9 10
2008-09 12.8% 12.8% £2.30 pw £4,825 pa £8.10 pw £5,435 £40,040 8% 1% 2008-09 £9,600 18% 18%
2007-08 12.8% 12.8% £2.20 pw £4,635 pa £7.80 pw £5,225 £34,840 8% 1% 2007-08 £9,200 10%,20%,40% 40%
Percentage of gain chargeable Business assets Non-business assets 100% 100% 50% 100% 25% 100% 25% 95% 25% 90% 25% 85% 25% 80% 25% 75% 25% 70% 25% 65% 25% 60%
Entrepreneurs’ relief: Disposals in 2008-09 Relevant gains (maximum) Reducing fraction £1,000,000 4/9
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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 – 1983 82.61 1984 86.84 1985 91.20 1986 96.25 1987 100.0 1988 103.3 1989 111.0 1990 119.5 1991 130.2 1992 135.6 1993 137.9 1994 141.3 1995 146.0 1996 150.2 1997 154.4 1998 159.5 1999 163.4 2000 166.6 2001 171.1 2002 173.3 2003 178.4 2004 183.1 2005 188.9 2006 193.4 2007 201.6 2008* 209.8 2009* 219.1 * = assumed Feb – 82.97 87.20 91.94 96.60 100.4 103.7 111.8 120.2 130.9 136.3 138.8 142.1 146.9 150.9 155.0 160.3 163.7 167.5 172.0 173.8 179.3 183.8 189.6 194.2 203.1 211.4 219.8 Mar 79.44 83.12 87.48 92.80 96.73 100.6 104.1 112.3 121.4 131.4 136.7 139.3 142.5 147.5 151.5 155.4 160.8 164.1 168.4 172.2 174.5 179.9 184.6 190.5 195.0 204.4 212.1 220.5 Apr 81.04 84.28 88.64 94.78 97.67 101.8 105.8 114.3 125.1 133.1 138.8 140.6 144.2 149.0 152.6 156.3 162.6 165.2 170.1 173.1 175.7 181.2 185.7 191.6 196.5 205.4 212.8 221.2 May 81.62 84.64 88.97 95.21 97.85 101.9 106.2 115.0 126.2 133.5 139.3 141.1 144.7 149.6 152.9 156.9 163.5 165.6 170.7 174.2 176.2 181.5 186.5 192.0 197.7 206.2 213.5 221.9 Jun 81.85 84.84 89.20 95.41 97.79 101.9 106.6 115.4 126.7 134.1 139.3 141.0 144.7 149.8 153.0 157.5 163.4 165.6 171.1 174.4 176.2 181.3 186.8 192.2 198.5 207.3 214.2 222.6 Jul 81.88 85.30 89.10 95.23 97.52 101.8 106.7 115.5 126.8 133.8 138.8 140.7 144.0 149.1 152.4 157.5 163.0 165.1 170.5 173.3 175.9 181.3 186.8 192.2 198.5 206.1 214.9 223.3 Aug 81.90 85.68 89.94 95.49 97.82 102.1 107.9 115.8 128.1 134.1 138.9 141.3 144.7 149.9 153.1 158.5 163.7 165.5 170.5 174.0 176.4 181.6 187.4 192.6 199.2 207.3 215.6 224.0 Sep 81.85 86.06 90.11 95.44 98.30 102.4 108.4 116.6 129.3 134.6 139.4 141.9 145.0 150.6 153.8 159.3 164.4 166.2 171.7 174.6 177.6 182.5 188.1 193.1 200.1 208.0 216.3 224.7 Oct 82.26 86.36 90.67 95.59 98.45 102.9 109.5 117.5 130.3 135.1 139.9 141.8 145.2 149.8 153.8 159.5 164.5 166.5 171.6 174.3 177.9 182.6 188.6 193.3 200.4 208.9 217.0 225.4 Nov 82.66 86.67 90.95 95.92 99.29 103.4 110.0 118.5 130.0 135.6 139.7 141.6 145.3 149.8 153.9 159.6 164.4 166.7 172.1 173.6 178.2 182.7 189.0 193.6 201.1 209.7 217.7 226.1 Dec 82.51 86.89 90.87 96.05 99.62 103.3 110.3 118.8 129.9 135.7 139.2 141.9 146.0 150.7 154.4 160.0 164.4 167.3 172.2 173.4 178.5 183.5 189.9 194.1 202.7 210.9 218.4 226.8 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 Stamp duty land tax Rate (%) Zero 1 3 4
Note (1)
Shares = 0.5% Residential (1) Up to £125,000 (1) Over £125,000 – 250,000 Over £250,000 – 500,000 Over £500,000 Non-residential Up to £150,000 Over £150,000 – 250,000 Over £250,000 – 500,000 Over £500,000
A higher threshold of £150,000 applies to transactions in residential land in disadvantaged areas.
New leases - duty on rent
Rate (%) Zero 1%
Notes (1) (2)
Net present value of rent Residential Non-residential Up to £125,000(1) Up to £150,000(2) Excess over £125,000 Excess over £150,000
A higher threshold of £150,000 applies to transactions in residential land in disadvantaged areas. No nil band on non-residential property (other than in disadvantaged areas) where annual rent is £1,000 or more.
Inheritance Tax 6 April 1996 – 5 April 1997 6 April 1997 – 5 April 1998 6 April 1998 – 5 April 1999 6 April 1999 – 5 April 2000 6 April 2000 – 5 April 2001 6 April 2001 – 5 April 2002 Death rate Lifetime rate Annual exemption Small gifts 40% 20% £3,000 £250
Nil rate band up to £200,000 up to £215,000 up to £223,000 up to £231,000 up to £234,000 up to £242,000
6 April 2002 – 5 April 2003 6 April 2003 – 5 April 2004 6 April 2004 – 5 April 2005 6 April 2005 – 5 April 2006 6 April 2006 – 5 April 2007 6 April 2007 – 5 April 2008 From 6 April 2008
Nil rate band up to £250,000 up to £255,000 up to £263,000 up to £275,000 up to £285,000 up to £300,000 up to £312,000 £5,000 £2,500 £2,500 £1,000 100% 80% 60% 40% 20%
Wedding gifts - Child - Grandchild or remoter issue - Other party to marriage - Other Nil% 20% 40% 60% 80%
Taper relief Death within 3 years of gift Between 3 and 4 years Between 4 and 5 years Between 5 and 6 years Between 6 and 7 years Other Indirect Taxes
Quick Succession relief Period between transfers less than one year Between 1 and 2 years Between 2 and 3 years Between 3 and 4 years Between 4 and 5 years
2008-09 Standard rate 5% Higher rate 17.5% Landfill Tax(2) Per tonne £32 Qualifying material £2.50 per tonne Landfill Communities Fund Relief for 90% of 6.0% × landfill tax liability (LCF) qualifying contributions Aggregates Levy Per tonne £1.95 Climate Change Levy(3) Electricity 0.456p per kwh Gas 0.159p per kwh Liquid hydrocarbons 1.018p per kwh Any other taxable 1.242p per kwh commodity Notes (1) Premium is tax inclusive – IPT is 1/21 or 7/47 of the premium (2) Pro rated for part tonnes (3) Where the reduced rate applies it is 20% of the rate shown in the table Insurance Premium Tax
(1)
2007-08 5% 17.5% £24 £2 per tonne 6.6% × landfill tax liability £1.60 0.441p per kwh 0.154p per kwh 0.985p per kwh 1.201p per kwh
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