 |
:: Navigation |
| :: Tax Rates |
Homepage
|
Income Tax Rates
|
Tax Year
|
Tax Year
|
|
|
2008/09
|
2007/08
|
|
Starting rate band to
|
£2,320
|
£2,230
|
|
Tax rate
|
10%*
|
10%
|
|
Basic rate band - next
|
£2,321 - £34,800
|
£32,370
|
|
Non-savings rate
|
20%**
|
22%
|
|
Savings rate
|
-
|
20%
|
|
Dividend ordinary rate
|
-
|
10%
|
|
Higher rate - income over
|
£34,800
|
£34,600
|
|
Tax rate excluding dividends
|
40%
|
40%
|
|
Dividend upper rate
|
32.5%
|
32.5%
|
* Only applicable to dividends and savings income.
** Except dividends (10%) and, in 2007/08, savings income (20%)
|
|
|
|
|
Personal Allowances
|
|
|
|
Allowances that reduce taxable income
|
£
|
£
|
|
Personal allowance under 65
|
6,035
|
5,225
|
|
65-74*
|
9,030
|
7,550
|
|
75 and over*
|
9,180
|
7,690
|
|
Allowances that reduce tax
|
|
|
|
Married couple's allowance (MCA)
|
|
|
|
Age of elder partner 73-74*
|
653.50
|
628.50
|
|
75 and 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 at least one partner was born before 6 April 1935.
|
Capital Gains Tax Allowances
|
|
|
|
Individuals
|
£
|
£
|
|
Annual exemption
|
9,600
|
9,200
|
|
Trusts
|
|
|
|
Annual exemption
|
4,800
|
4,600
|
|
Corporation Tax
|
Year to 31.03.09
|
Year to 31.03.08
|
|
|
|
Profits Band £
|
Rate %
|
Rate %
|
|
Small companies rate
|
0 - 300,000
|
21
|
20
|
|
Marginal (small companies rate)
|
300,001 – 1,500,000
|
29.75
|
32.50
|
|
Full rate
|
>1,500,000
|
28
|
30
|
|
Car, Van & Fuel Benefits
|
|||
|
CO2 emissions (gm/km)
(round down to nearest 5gm/km)
|
% of car's list price taxed
|
Fuel Benefit
(16,900 x %) £
|
|
|
up to 135
|
15
|
2,535
|
|
|
140
|
16
|
2,704
|
|
|
145
|
17
|
2,873
|
|
|
150
|
18
|
3,042
|
|
|
155
|
19
|
3,211
|
|
|
160
|
20
|
3,380
|
|
|
165
|
21
|
3,549
|
|
|
170
|
22
|
3,718
|
|
|
175
|
23
|
3,887
|
|
|
180
|
24
|
4,056
|
|
|
185
|
25
|
4,225
|
|
|
190
|
26
|
4,394
|
|
|
195
|
27
|
4,563
|
|
|
200
|
28
|
4,732
|
|
|
205
|
29
|
4,901
|
|
|
210
|
30
|
5,070
|
|
|
215
|
31
|
5,239
|
|
|
220
|
32
|
5,408
|
|