|
|
Tax
Rates & Allowances 2008-09
Income
Tax
|
| Rates |
2007-08
|
2008-09
|
| Starting
rate band to |
£2,230
|
-
|
| |
Tax
rate |
10%
|
-
|
| Basic
rate band - next |
£32,370
|
£0-36,000
|
| |
Non-savings
rate |
22%
|
20%
|
| |
Savings
rate |
20%
|
10%<£2320
|
| |
UK
dividend rate |
10%
|
10%
|
| Higher
rate - income over |
£34,600
|
£36,000
|
| |
Higher
tax rate |
40%
|
40%
|
| |
Dividend
upper rate
|
32.5%
|
32.5%
|
| |
|
|
|
| Allowances
that reduce Taxable Income |
| Personal
allowances (PA) |
-
under 65 |
£5,225
|
£5,435
|
| |
-
65 to 74 |
£7,550
|
£9,030
|
| |
-
75 and over |
£7,690
|
£9,180
|
| Minimum
PA |
£5,225
|
£5,035
|
| Married
Couple's Allowance (MCA) |
|
|
|
Tax
Reduction(PA)
|
- 65 to 74 |
£628.50
|
£653.50
|
|
|
-
75 and over |
£636.50
|
£662.50
|
| |
| Ages
are at the end of the tax year. Ages for MCA relate to the elder
spouse. |
| MCA
is available only to couples where at least one spouse was aged
over 65 |
| or
over on 5 April 2000 |
| Age-related
allowances progressively withdrawn if income exceeds £21,800. |
| |
|
Tax
Shelters
|
| Enterprise
Investment Scheme up to |
£400,000
|
£400,000
|
| Venture
Capital Trust up to |
£200,000
|
£200,000
|
| |
|
|
| 'Rent
a Room' |
| Exempt
on gross annual rent |
£4,250
|
£4,250
|
| S |
|
|
| Construction
Industry Scheme |
| Deduction
rate |
20/30%
|
20/30%
|
| |
|
|
Pensions
& Savings
|
| Pensions |
|
There
is no limit on the amount that may be contributed to a registered
pension scheme. The maximum amount on which an individual can
claim tax relief in any tax year is the greater of the individual's
UK relevant earnings or £3,600.
If
total pension input exceeds the annual allowance of £235,000
there is a tax charge at 40% on the excess. This limit does
not apply in the year that full pension benefits are taken.
|
| Minimum
age for tax relief |
74 |
| Minimum
age for taking benefits |
50 |
| Lifetime
allowance charge - lump sum paid 55% - monies |
25% |
| retained
on cumulative benefits exceeding |
£1,650,000* |
| Maximum
tax-free lump sum |
25%* |
*Subject
to transitional protection for excess amount
|
|
| |
|
| ISAs: |
|
| Overall
investment limit |
£7,200
|
| Including
cash maximum of |
£3,600
|
| |
Tax
Rates & Allowances Continue >
|
