Tax rates and allowances 2008
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2008/09 |
2007/08 |
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£ |
£ |
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| Income tax rates |
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| 10% lower rate tax |
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Up to 2,230 |
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| 20% basic rate tax |
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Up to 36,000 |
- |
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| 22% basic rate tax |
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2,231 - 34,600 |
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| 40% higher rate tax |
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above 36,000 |
above 34,600 |
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| Personal allowanes |
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| Personal allowance (age under 65) |
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5,435 |
5,225 |
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| Personal allowance (age 65 - 74) |
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9,030 |
7,550 |
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| Personal allowance (age 75 and over) |
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9,180 |
7,690 |
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| Married couple's allowance (age less than 75 and born before 6 April 1935) |
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6,535 |
6,285 |
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| Married couple's allowance (age 75 and over) |
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6,625 |
6,365 |
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| Married couple's allowance - minimum amount |
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2,540 |
2,440 |
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| Income limit for age-related allowances |
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21,800 |
20,900 |
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| Blind person's allowance |
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1,800 |
1,730 |
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| National insurance |
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| Lower earnings limit, primary Class 1 (per week) |
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90 |
87 |
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| Upper earnings limit, primary Class 1 (per week) |
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770 |
670 |
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| Primary and secondary threshold (per week) |
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105 |
100 |
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| Employee's primary Class 1 rate between primary theshold and upper earnings limit |
11.00% |
11.00% |
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| Employee's primary Class 1 rate above upper earnings limit |
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1.00% |
1.00% |
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| Employee's contracted-out rebate - salary-related scheme |
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1.60% |
1.60% |
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| Employee's contracted-out rebate - money-purchase scheme |
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1.60% |
1.60% |
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| Married woman's reduced rate between primary theshold and upper earnings limit |
4.85% |
4.85% |
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| Married woman's rate above upper earnings limit |
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1.00% |
1.00% |
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| Employer's secondary Class 1 rate above secondary threshold |
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12.80% |
12.80% |
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| Employer's contracted-out rebate, salary-related schemes |
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3.70% |
3.70% |
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| Employer's contracted-out rebate, money-purchase schemes |
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1.40% |
1.40% |
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| Class 2 rate (per week) |
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2.30 |
2.20 |
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| Class 2 small earning exception (per year) |
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4,825 |
4,635 |
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| Special Class 2 rate for share fishermen (per week) |
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2.95 |
2.85 |
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| Special Class 2 rate for volunteer development workers |
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4.50 |
4.35 |
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| Class 3 rate (per week) |
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8.10 |
7.80 |
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| Class 4 lower profits limit |
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5,435 |
5,225 |
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| Class 4 upper profits limit |
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40,040 |
34,840 |
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| Class 4 rate between lower profits limit and upper profits limit |
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8.00% |
8.00% |
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| Class 4 rate above upper profits limit |
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1.00% |
1.00% |
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| State pension/pension credit |
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| State pension |
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| Category A or B basic pension |
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90.70 |
87.30 |
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| Category B basic pension (lower) - husband's insurance |
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54.35 |
52.30 |
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| Category C or D - non-contributory |
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54.35 |
52.30 |
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| Pension Credit |
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| Standard minimum guarantee - single |
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124.05 |
119.05 |
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| Standard minimum guarantee - couple |
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189.35 |
181.70 |
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| Pensions |
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| Annual allowance |
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235,000 |
225,000 |
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| Lifetime allowance |
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1,650,000 |
1,600,000 |
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| Reliefs and incentives |
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| Enterprise Investment Scheme (EIS) - maximum |
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500,000 |
400,000 |
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| Venture Capital Trust (VCT) - maximum |
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200,000 |
200,000 |
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| Enterprise Management Incentive Scheme (EMI) - employee limit |
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120,000 |
100,000 |
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| Individual Savings Account (ISA) |
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- total maximum investment |
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7,200 |
7,000 |
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- maximum cash element of ISA |
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3,600 |
3,000 |
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| Capital gains tax |
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| Individuals |
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9,600 |
9,200 |
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| Certain trusts for disabled persons |
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9,600 |
9,200 |
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| Other trusts |
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4,800 |
4,600 |
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| Working and Child tax credits rates |
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| Working tax credit |
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| Basic element |
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1,800 |
1,730 |
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| Couple and lone parent element |
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1,770 |
1,700 |
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| 30 hour element |
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735 |
705 |
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| Disabled worker element |
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2,405 |
2,310 |
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| Severe disability element |
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1,020 |
980 |
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| 50+ return to work payment (16-29 hours) |
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1,235 |
1,185 |
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| 50+ return to work payment (30+ hours) |
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1,840 |
1,770 |
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| Childcare element of the Working tax credit |
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| Maximum eligible cost for one child (per week) |
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175 |
175 |
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| Maximum eligible cost for two or more children (per week) |
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300 |
300 |
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| Percentage of eligible costs covered |
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80.00% |
80.00% |
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| Child tax credit |
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| Family element |
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545 |
545 |
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| Family element, baby addition |
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545 |
545 |
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| Child element |
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2,085 |
1,845 |
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| Disabled child element |
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2,540 |
2,440 |
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| Severely disabled child element |
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1,020 |
980 |
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| Income threshold and withdrawal rates |
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| First income threshold |
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6,420 |
5,220 |
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| First withdrawal rate |
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39.00% |
37.00% |
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| Second income threshold |
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50,000 |
50,000 |
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| Second withdrawal rate |
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6.67% |
6.67% |
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| First threshold for those entitled to Child tax credit only |
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15,575 |
14,495 |
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| Income disregard |
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25,000 |
25,000 |
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| Child benefit/Guardian's allowance rates |
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| Eldest/only child |
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18.80 |
18.10 |
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| Other children |
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12.55 |
12.10 |
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| Guardian's allowance |
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13.45 |
12.95 |
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| Inheritance tax |
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| Single persons nil rate band |
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1 - 312,000 |
1 - 300,000 |
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| Single persons 40% band |
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over 312,000 |
over 300,000 |
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| Married couples or civil partnerships allowance nil rate band |
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624,000 |
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| Taxation of trusts |
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| Trust tax rate excluding dividend income |
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40.00% |
40.00% |
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| Dividend trust rate |
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32.50% |
32.50% |
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