Income Tax Allowances

Income tax allowances

2007-2008

2008-2009

Personal allowance

£5,225

£6,035

Personal allowance for people aged 65-74 (1)

£7,550

£9,030

Personal allowance for people aged 75 and over (1)

£7,690

£9,180

Married couple's allowance (born before 6th April 1935 but aged under 75) (1) (2)

£6,285

£6,535

Married couple's allowance - aged 75 and over (1) (2)

£6,365

£6,625

Income limit for age-related allowances

£20,900

£21,800

Minimum amount of married couple's allowance

£2,440

£2,540

Blind person's allowance

£1,730

£1,800

Tax Bands

2007-08

£ per year

2008-09

£ per year

Starting rate: 10%

£0-£2,230

Basic rate:22%

£2,231-£34,600

Basic rate: 20%*

£0-£34,800

Higher rate: 40%

Over £34, 600

Higher rate: 40%*

Over £34,800

Corporation tax - PCTCT

Rates, limits, fractions for financial years starting 1 April

2007

2008

Main rate of corporation tax

30%

28%

Small companies’ rate (SCR)*

20%

21%

SCR can be claimed by qualifying companies with profits at an annual rate not exceeding

£300,000

£300,000

Marginal small companies’ relief (MSCR) lower limit

£300,000

£300,000

MSCR upper limit

£1,500,000

£1,500,000

MSCR fraction

1/40

7/400

Special rate for authorised investment funds – unit trusts and open-ended investment companies

20%

20%

Capital Gains Tax - Individuals

Annual exempt amount

2006-2007

2007-2008

2008-2009

Individuals

£8,800

£9,200

£9,600

National Insurance - Rates and Allowances

£ per week

2007-2008

2008-2009

Lower earnings limit, primary Class 1

£87

£90

Upper earnings limit, primary Class 1

£670

£770

Primary threshold

£100

£105

Secondary threshold

£100

£105

Employees’ primary Class 1 rate between primary threshold and upper earnings limit

11%

11%

Employees’ primary Class 1 rate above upper earnings limit

1%

1%

Employees’ contracted-out rebate

1.6%

1.6%

Married women’s reduced rate between primary threshold and upper earnings limit

4.85%

4.85%

Married women’s rate above upper earnings limit

1%

1%

Employers’ secondary Class 1 rate above secondary threshold

12.8%

12.8%

Employers’ contracted-out rebate, salary-related schemes

3.7%

3.7%

Employers’ contracted-out rebate, money-purchase schemes

1.4%

1.4%

Class 2 rate

£2.20

£2.30

Class 2 small earnings exception

£4,635 per year

£4,825 per year

Special Class 2 rate for share fishermen

£2.85

£2.95

Special Class 2 rate for volunteer development workers

£4.35

£4.50

Class 3 rate

£7.80

£8.10

Class 4 lower profits limit

£5, 225 per year

£5, 435 per year

Class 4 upper profits limit

£34, 840 per year

£40, 040 per year

Class 4 rate between lower profits limit and upper profits limit

8%

8%

Class 4 rate above upper profits limit

1%

1%

Class 1A NICs payable in July 2008 for benefits provided in the 2007-08 tax year are due at 12.8%