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Association of
Chartered
Certified Accountants |
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Supported
by the Single Regeneration Budget, European Regional
Development Fund and the Tame Valley Initiative.
www.tameside.gov.uk
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04-05 to 05-06 |
02-03 to 03-04 |
03-04 to 04-05 |
Income Tax rates
Main Income Tax Relief’s
Personal Pension & Retirement Annuities
Employee Share Scheme
Car benefit for employees
Car Fuel
Tax-free mileage allowance - own vehicle 02-04
Individual Savings Accounts (ISA) 02-04
National Insurance Contributions
Basic State Pension
Inheritance tax
Capital gains tax
Child trust fund
Stamp Duty
Corporation tax
Main capital and other allowances
| Income Tax rates |
03-04 | 02-03 |  | | 10% on first | 1,960 | 1,920 | | 22% (20% for savings income) on next | 28,540 | 27,980 | | Dividends for: basic rate taxpayers | 10% | 10% | | higher rate taxpayers | 32.5% | 32.5% | | Certain trusts (eg discretionary) : dividends | 25% | 34% | | other income | 34% | 34% |
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| Main Income Tax Relief’s |
03-04 | 02-03 | | | Personal allowance (basic) | 4,615 | 4,615 | | Personal allowance (65-74) |
6,610 | 6,100 | | Personal allowance (75 & over) | 6,720 | 6,370 | | Married Couples allowance (basic) at 10%* | 2,150 | 2,1100 | | Married Couples allowance (under 75) at 10%* | 5,565 | 5,465 | | Married Couples allowance (75 & over) at 10%* | 5,635 | 5,535 | | Age-related allowances reduced to basic by £1 for each £2 of income over | 18,300 | 17,900 |
| Child tax credit/children's tax credit value (CTC)† |
545 | 529 | | Higher CTC for babies: for first 12 months | 1,090 | - | | Higher CTC for babies: for first tax year | - | 1,049 | | Blind persons allowance | 1,510 | 1,480 | | Rent-a-room tax-free income | 4,250 | 4,250 | | Enterprise investment scheme (EIS) at 20%• | 150,000 | 150,000 | | Venture Capital Trust (VCT) at 20% | 100,000 | 100,000 | | *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 | | |
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| Personal Pension & Retirement Annuities |
| Maximum contributions based on net relevant earnings
(NRE) |
| Personal Pensions |
Retirement Annuities |
|
| Age on |
|
03-04 |
02-03 |
Age on |
|
| 6 April |
%NRE |
£ |
£ |
6 April |
%NRE |
| 35 or less |
17.5 |
17,325 |
17,010 |
35 or less |
17.5 |
| 36-45 |
20.0 |
19,800 |
19,440 |
36-45 |
17.5 |
| 46-50 |
25.0 |
24,750 |
24,300 |
46-50 |
17.5 |
| 51-55 |
30.0 |
29,700 |
29,160 |
51-55 |
20.0 |
| 56-60 |
35.0 |
34,650 |
34,020 |
56-60 |
22.5 |
| 61-74 |
40.0 |
39,000 |
38,880 |
61-74 |
27.5 |
| Contribution without NRE |
3,600 |
3,600 |
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| Pension earnings cap |
99,000 |
97,200 |
No earnings cap |
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| Employee Share Scheme |
03-04 |
02-03 |
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| 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 |
30,000 |
30,000 |
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| Car benefit for employees |
| Taxable amount based on cars list price when new
up to £80,000 |
| Charge varies according to CO2 emissions in grams
per kilometre |
|
| Emissions |
% of price |
Emissions |
% of price |
Emissions |
% of price |
| g/km |
03-04 |
02-03 |
g/km |
03-04 |
02-03 |
g/km |
03-04 |
02-03 |
| Under 160 |
15 |
15 |
195-199 |
23 |
21 |
235-239 |
31 |
29 |
| 160-164 |
16 |
15 |
200-204 |
24 |
22 |
240-244 |
32 |
30 |
| 165-169 |
17 |
15 |
205-209 |
25 |
23 |
245-249 |
33 |
31 |
| 170-174 |
18 |
16 |
210-214 |
26 |
24 |
250-254 |
34 |
32 |
| 175-179 |
19 |
17 |
215-219 |
27 |
25 |
255-259 |
35 |
33 |
| 180-184 |
20 |
18 |
220-224 |
28 |
26 |
260-264 |
35 |
34 |
| 185-189 |
21 |
19 |
225-229 |
29 |
27 |
265 & over |
35 |
35 |
| 190-194 |
22 |
20 |
230-234 |
30 |
28 |
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| Diesels not meeting Euro IV, add 3% subject
to maximum charge of 35% |
| Cars reg. pre 1998 Up to 1,400cc: 15%, 1,401-2,000cc,
Over 2,000cc: 32% |
| Vans – taxable amount for private use 02-04 |
| Age under 4 years on 5 April: £500 |
Age 4 years and over on
5 April: £500 |
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| Car Fuel |
| 03-04 Multiply £14,400 by the same CO2 %age
as used for the car benefit |
| Minimum charge 15%: £2,160 |
Maximum charge 35%: £5,040 |
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| 02-03 |
1,400cc or less |
1,401-2000cc |
Over 2,000cc |
| Petrol/LPG |
£2,240 |
£2,850 |
£4,200 |
| Diesel |
£2,850 |
£2,850 |
£4,200 |
| Tax-free mileage allowance - own vehicle 02-04 |
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| Cars Up to 10,000 business miles: 40p |
Over 10,000 business miles: 25p |
| Motorcycles 24p per business mile |
Bycycles 20p per business mile |
| Individual Savings Accounts (ISA) 02-04 |
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| 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 |
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03-04 |
02-03 |
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Employee |
Employer |
Employee |
Employer |
| NIC rate |
11% |
12.8% |
10% |
11.8% |
| No NICs on the first |
£89pw |
£89pw |
£89pw |
£89pw |
| NIC's charged up to |
£595pw |
No limit |
£585pw |
No limit |
| 1% NIC on earnings over |
£595pw |
– |
– |
– |
| Certain married women |
4.85% |
As above |
3.85% |
As above |
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| Contracted-Out Rebate |
03-04 |
02-03 |
| Rebate Only |
£77.01-£595 pw |
£75.01-£585 pw |
| Salary-related scheme |
1.6% |
3.5% |
1.6% |
3.5% |
| Money-purchase scheme |
1.6% |
1.0% |
1.6% |
1.0% |
| Limit/Threshold |
03-04 |
02-03 |
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Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| |
£ |
£ |
£ |
£ |
£ |
£ |
| Lower earnings limit |
77 |
334 |
4,004 |
75 |
325 |
3,900 |
| NICs start |
89 |
385 |
4,615 |
89 |
385 |
4,615 |
| Upper earnings limit |
959 |
2,579 |
30,940 |
585 |
2,535 |
30,420 |
| Contracted-Out Rebate – Personal
Pensions 03-04 |
| Size of earnings pa |
£4,004-£11,200 |
£11,200-£25,600 |
£25,600-£30,940 |
| S2P pension accrual |
40% |
10% |
20% |
| Rebate |
Double rate below* |
Half rate below* |
As rate below* |
| Age on 5 April 03 |
| Rebate % for 20% accrual |
| Age on 5 April 03 |
| Rebate % for 20% accrual |
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| 23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
31 |
32 |
33 |
34 |
35 |
36 |
37 |
| 4.5 |
4.5 |
4.6 |
4.6 |
4.7 |
4.7 |
4.8 |
4.8 |
4.9 |
4.9 |
5.0 |
5.0 |
5.0 |
5.1 |
5.1 |
| 38 |
39 |
40 |
41 |
42 |
43 |
44 |
45 |
46 |
47 |
48 |
49 |
50 |
51 |
52+ |
| 5.2 |
5.2 |
5.3 |
5.5 |
5.6 |
5.8 |
6.0 |
6.2 |
6.4 |
6.6 |
7.1 |
7.9 |
8.9 |
10.0 |
10.5 |
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| Class 1A Employer |
03-04 |
02-03 |
| On most taxable benefits |
12.8% |
11.8% |
| Self-employed |
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| Class 2 Flat rate |
£2.00 pw £104 pa |
£2.00 pw £104 pa |
| if earnings over |
£4,095 pa |
£4,025 pa |
| Class 4 On profits |
£4,615-£30,940pa: 8% |
£4,615-£30,420pa: 7% |
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Over £30,940pa: 1% |
- |
| Voluntary |
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| Class 3 Flat rate |
£6.95pw £361.40pa |
£6.85pw £356.20pa |
| Basic State Pension |
03-04 |
02-03 |
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Weekly |
Annual |
Weekly |
Annual |
| Single person |
£77.45 |
£4,027.40 |
£75.50 |
£3,926.00 |
| Dependant's addition |
£46.35 |
£2,410.20 |
£45.20 |
£2,350.40 |
| Total married pension |
£123.80 |
£6,437.60 |
£120.70 |
£6,276.40 |
| Pension credit/minimum income guarantee
(03-04) |
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Single £102.10pw |
Married: £155.80pw |
| Inheritance tax |
03-04 |
02-03 |
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| Nil-rate band |
£255,000 |
£250,000 |
| Rate of tax on excess |
40% |
40% |
| Lifetime transfers to and from certain trusts |
20% |
20% |
| Overseas domiciled spouse exemption |
£55,000 |
£55,000 |
| • Relief for businesses, unlisted and AIM companies,
owner-occupied farmland |
100% |
100% |
| • Relief for certain other business assets |
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| Reduced tax charge on gifts within 7 years of death |
50% |
50% |
| Years before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| % of death tax charge |
100 |
80 |
60 |
40 |
20 |
| Annual exempt gifts |
£3,000 per donor £250 per donee |
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| Capital gains tax |
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| Exemptions |
03-04 |
02-03 |
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| Individuals, personal representatives, etc |
£255,000 |
£250,000 |
| Trusts generally |
40% |
40% |
| Chattels (5/3 taxable on excess gain proceeds) |
£6,000 |
£6,000 |
| Taper Relief for 02-04 Percentage of gain
that is chargeable based on the number of complete years an asset is owned
after 05.04.98 |
| Years owned |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| Business Assets |
50 |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
25 |
| Other Assets* |
100 |
100 |
95 |
90 |
85 |
80 |
75 |
70 |
65 |
60 |
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| * One year's extra relief for other assets
owned before 17.03.98 |
| Tax Rate: Individuals: as savings tax rates
| Estates and trusts:34% |
| Child trust fund |
Children born from September 2002 |
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| Basic endowment: £250 |
Low income families: £500 |
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| Extra annual contributions from family and
friends up to : £1,000 |
| Stamp Duty |
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| Stocks and marketable securities: |
0.5% |
| Land (exemptions apply for disadvantaged areas) |
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| 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 |
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| Corporation tax |
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| Profits |
Effective Rate |
Effective Rate |
| £ |
To 31.03.04 |
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% |
| Main capital and other allowances |
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| Plant and machinery (P&M) |
*25% |
| P&M, except for large firms |
first year 40% |
| Information & communication technology - small firms |
first year to 31.03.04 100% |
| 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 |
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