Income Tax rates

04-05

03-04

10% on first

2,020

1,960

22% (20% for savings income) on next

29,380

28,540

40%

31,400+

30,500+

Dividends for: basic rate taxpayers

10%

10%

             higher rate taxpayers

32.5%

32.5%

Certain trusts (eg discretionary) : dividends

25%

16.5%

             other income

40%

40%

Main Income Tax Relief’s

04-05

03-04

Personal allowance (basic)

4,745

4,615

Personal allowance (65-74)

6,830

6,610

Personal allowance (75 & over)

6,950

6,720

Married Couples allowance (basic) at 10%*

2,210

2,150

Married Couples allowance (under 75) at 10%*

5,725

5,565

Married Couples allowance (75 & over) at 10%*

5,795

5,635

Age-related allowances reduced to basic by £1 for each £2 of income over

18,900

18,300

Child tax credit/children's tax credit value (CTC)†

545

545

Blind persons allowance

1,560

1,510

Rent-a-room tax-free income

4,250

4,250

Enterprise investment scheme (EIS) at 20%•

200,000

150,000

*Where at least one claimant was born before 6 April 1935

† 03/04 CTC reduced by £1 per £15 of joint income over £50,000
02/03 CTC reduced by £1 per £15 of either income taxed at higher rate

• Also eligible for CGT reinvestment relief with no ceiling for EIS

Personal Pension & Retirement Annuities

Maximum contributions based on net relevant earnings (NRE)

Personal Pensions

Retirement Annuities

Age on

Age on

6 April

%NRE

6 April

%NRE

35 or less

17.5

35 or less

17.5

36-45

20.0

36-45

17.5

46-50

25.0

46-50

17.5

51-55

30.0

51-55

20.0

56-60

35.0

56-60

22.5

61-74

40.0

61-74

27.5

Contribution without NRE

3,600

Pension earnings cap

99,000 2003-04

102,000  2004-05

Employee Share Scheme

04-05

03-04

Share incentives plans

£

£

Employer contribution

3,000

3,000

Employee contribution

1,500

1,500

Employer matching (2:1) contribution

3,000

3,000

Enterprise management incentive option value

100,000

100,000

Savings-related share options per month

250

250

Approved share option schemes (CSOP)

30,000

30,000

Tax-free mileage allowance - own vehicle 03-05

Cars Up to 10,000 business miles: 40p

Over 10,000 business miles: 25p

Motorcycles 24p per business mile

Bicycles 20p per business mile

Individual Savings Accounts (ISA) 03-05

Maximum investment

Maxi-ISA

Mini-ISA

Cash component

3,000

3,000

Insurance component

1,000

1,000

Stocks & Shares component

balance up to £7,000

3,000

TESSA-Only ISA: max reinvestment of capital from a TESSA

9,000

National Insurance Contributions

Class 1 Employee Not Contracted-Out of State Second Pension

04-05

03-04

Employee

Employer

Employee

Employer

NIC rate

11%

12.8%

11%

12.8%

No NICs on the first

£91pw

£91pw

£89pw

£89pw

NIC's charged up to

£610pw

No limit

£595pw

No limit

1% NIC on earnings over

£610pw

–

£595pw

–

Certain married women

4.85%

As above

4.85%

As above

Class 1A Employer

04-05

03-04

On most taxable benefits

12.8%

12.8%

Self-employed

Class 2 Flat rate

£2.05 pw £106.60 pa

£2.00 pw £104 pa

    if earnings over

£4,215 pa

£4,095 pa

Class 4 On profits

£4,745-£31,720pa: 8%

£4,615-£30,920pa: 8%

Over £31,720pa: 1%

Over £30,920pa: 1%

Voluntary

Class 3 Flat rate

£7.15pw £371.80pa

£6.95pw £361.40pa

Basic State Pension

04-05

03-04

Weekly

Annual

Weekly

Annual

Single person

£77.45

£4,027.40

£77.45

£4,027.40

Dependant's addition

£46.35

£2,410.20

£46.35

£2,410.20

Total married pension

£123.80

£6,437.60

£123.80

£6,437.60

Pension credit/minimum income guarantee (04-05)

Single £102.10pw

Married: £155.80pw

Corporation tax

Profits

Effective Rate

Effective Rate

£

To 31.03.05

To 31.03.04

0-10,000

NIL

NIL

10,001 - 50,000

23.75%

23.75%

50,001 - 300,000

19%

19%

300,001 - 1,500,000

32.75%

32.75%

1,500,001 and over

30%

30%

Inheritance tax

04-05

03-04

Nil-rate band

£263,000

£255,000

Rate of tax on excess

40%

40%

Capital gains tax

Exemptions

04-05

03-04

Individuals, personal representatives, etc

£255,000

£255,000

Trusts generally

40%

40%

Chattels (5/3 taxable on excess gain proceeds)

£6,000

£6,000

Taper Relief for 03-05 Percentage of gain that is chargeable based on the number of complete years an asset is owned after 05.04.98

* One year's extra relief for other assets owned before 17.03.98

Tax Rate: Individuals: as savings tax rates | Estates and trusts:34%

Stamp Duty

Stocks and marketable securities:

0.5%

Land (exemptions apply for disadvantaged areas)

Price is £60,000 (£150,000 for non-residential*) or less

Nil

Price is over £60,000 (£150,000*) and up to £250,000

1%

Price is over £250,000 and up to £500,000

3%

Price is over £500,000

4%

* Proposed from 1 December 2003

Main capital and other allowances

Plant and machinery (P&M)

*25%

P&M, except for large firms

first year 40%

Information & communication technology - small firms

first year to 31.03.05 100%

Certain long-life P&M

*6%pa

Motor cars * 25%pa, max £3,000pa

Low emission cars 100%

Enterprise zone building, R&D capital expenditure, qualifying flat conversions and energy-efficient P&M

100%

Industrial and agricultural buildings, hotels, docks, etc.

†4%pa

R&D revenue expenditure:

small firms 150%
large firms 125%

*reducing balance     †straight line