| Rates and Banding | 2008/2009 | 2007/2008 | ||
|---|---|---|---|---|
| Starting | 10% | up to £2,230 | ||
| Basic | 20% | £0-£36,000 | 22% | £2,231 to £34,600 |
| Higher | 40% | above £36,000 | 40% | above £34,600 |
| Allowances | 2008/2009 | 2007/2008 | ||
| Personal allowance | £5,435 | £5,225 | ||
| Age 65 to 74 | ||||
| Personal allowance | £9,030 † | £7,690 | ||
| Married couple's allowance | £6,285*† | |||
| Age 75 or over | ||||
| Personal Allowance | £9,180 † | £7,690 | ||
| Married couple's allowance | £6,365* | |||
| Married couple’s allowance (73 or 74 at 05.04.08) | £6,535* † | |||
| Married couple’s allowance (75 or over at 05.04.08) | £6,625* † | |||
| Blind person’s allowance | £1,800 | |||
| Maintenance payments | £2,540 | |||
| Income limit for age allowances | £20,900 | |||
*Relief at 10% for those born before 6 April 1935
† Reduced by £1 for every £2 for income over £21,800
Basic rate to fall to 20p in April 2008 with the 10p band abolished. Higher rate threshold to increase to £43,000 in 2009.
| Annual Exemption | 2008/2009 | 2007/2008 | |||
|---|---|---|---|---|---|
| Individuals | £9,600 | £9,200 | |||
| Trusts | £4,800 | ||||
| Rates | |||||
| Individuals | 18%* | ||||
| Trusts | 40% | ||||
|
*From 2008 taper relief and indexation are no longer available to reduce the chargeable gain. Gains can be deferred by re-investing into Enterprise Investment Scheme shares. From 6 April 2008 a new Entrepreneurs’ Relief is available. Where the conditions are met, the relief will reduce the gain to an effective tax rate of 10% up to a lifetime maximum of £1 million. From 6 April 2000 the holding period required to receive maximum taper relief for non-business assets is ten years: |
|||||
| Number of complete years | Taper relief % of gain | ||||
| 0-2 | 0 | ||||
| 3 | 5 | ||||
| 4 | 10 | ||||
| 5 | 15 | ||||
| 6 | 20 | ||||
| 7 | 25 | ||||
| 8 | 30 | ||||
| 9 | 35 | ||||
| 10 or more | 40 | ||||
| Rates | 2008/2009 | 2007/2008 |
|---|---|---|
| Nil | £1 to £312,000 | Up to £300,000 |
| 40% | Over £312,000 | Excess |
Reduced tax clawback on gifts received within 7 years of donor’s death.
Various reliefs and exemptions are available.
ISAs are tax efficient products for income and gains. No taxes paid on capital gains within the account.
| Stocks, shares and insurance | 7,200† |
| Cash | 3,600 |
† Less any amounts contributed to cash.
The tax credit of 10% on dividends from UK equities is not reclaimable.
| Rates applicable for 2008/2009 | Price | Rate payable on full price |
|---|---|---|
| Shares | Not applicable | 0.5% |
| Other Property | Up to £125,000 | nil |
| £125,001 to £250,000 | 1% | |
| £250,001 to £500,000 | 3% | |
| above £500,000 | 4% | |
For zero carbon residential homes up to £500,000, there will be nil charge with 4% payable on homes over £500,000.
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