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Personal Tax Rates & Allowances
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Information on the following
categories of personal tax rates and Allowances can be found
below.
You can scroll through all the information or click on
one of the categories to the right to jump straight to
the information. |
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| Income Tax |
2007-8 |
2006-7 |
| Starting Rate Band to: |
£2,230 |
£2,150 |
| Tax rate |
10% |
10% |
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| Basic Rate Band - Next |
£32,370 |
£31,150 |
| Non-savings rate |
22% |
22% |
| Savings rate |
20% |
20% |
| UK dividend rate |
10% |
10% |
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| Higher Rate - Income
Over |
£34,600 |
£33,300 |
| Tax rate excluding UK dividends |
40% |
40% |
| UK dividend rate |
32.5% |
32.5% |
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| Income Tax Allowances |
| Allowances that
reduce Taxable Income |
| Personal allowance |
- under 65 |
£5,225 |
£5,035 |
| - 65 to 74* |
£7,550 |
£7,280 |
| - 75 & over* |
£7,690 |
£7,420 |
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| Allowances that
reduce Tax |
| Married Couples
Allowance |
- 73 to 74* |
£628.50 |
£606.50 |
| - 75 & over* |
£636.50 |
£613.50 |
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*higher allowances are scaled back when
income exceeds £20,900.
Married Couple allowance only available where at least one spouse was born before
6 April 1935. |
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| Capital
Gains Tax |
2007-8 |
2006-7 |
| Taxed as top slice
of Savings income |
| Annual
Exemption |
individual |
£9,200 |
£8,800 |
| settlement |
£4,600 |
£4,400 |
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| Transfers between
spouses living together are exempt. |
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| Inheritance Tax |
2007-8 |
2006-7 |
| Nil
Rate Band |
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£300,000 |
£285,000 |
| Rate
of Tax on Balance |
| Chargeable lifetime
transfers |
20% |
20% |
| Transfers on
or within 7 years of death |
40% |
40% |
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| Al Lifetime transfers
not covered by exemptions and made within seven years
will be added back to the estate for purposes of tax
liability calculations. This may then be reduced by: |
| Yrs before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| Tax Reduced by |
0% |
20% |
40% |
60% |
80% |
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| Exemptions: |
| Please contact
us for a detailed discussion on inheritance tax
exemptions and tax planning. |
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| Stamp
Duty |
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2007-8 |
| Stamp Duty on
residential property is payable on the following scale: |
| Value to £125,000* |
zero |
| £125,001 - £250,000 |
1% |
| £250,001 - £500,000 |
3% |
| Value above £500,000 |
4% |
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| *£150,000
in Enterprise Areas. |
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| Stamp Duty is payable at a rate of 0.5%
on shares and securities |
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| Pension
Allowances |
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 the Total Pension input exceeds the Annual Allowance of £225,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that the full pension benefits are taken.
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| Maxumum Age for Tax Relief |
74 |
| Minimum Age for taking Benefits |
50 |
| Lifetime allowance charge - lump sum paid |
55% |
| Lifetime allowance charge - monies retained |
25% |
| On Cumulative benefits exceeding |
£1,600,000 * |
| Maximum tax free lump sum |
25% |
| *subject to transactional protection for excess amount |
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| ISA's |
| Overall Investment Limit |
£7,000 |
| including cash maximum of |
£3,000 |
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| Please Note: The
figures in this tax guide are for guidance only. Professional
advice should be obtained before acting on the information
and no responsibility can be accepted for any loss however caused
resulting from actions taken or not-taken as a result of the
information on this page. |
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