Tax Rates and Allowances
| 2005-06 (£) | 2006-07 (£) | Increase (£) | |
|---|---|---|---|
| INCOME TAX ALLOWANCES: | |||
| Personal allowance | 4,895 | 5,035 | 140 |
| CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT: | |||
| Individuals etc: | 8,500 | 8,800 | 300 |
| Other trustees: | 4,250 | 4,400 | 150 |
| Inheritance tax threshold | 275,000 | 285,000 | 10,000 |
| PENSIONS SCHEMES: | |||
| Annual allowance: | N/A | £215,000 | N/A |
| Lifetime allowance: | N/A | £1,500,000 | N/A |
Taxable Bands
| Taxable bands 2005-06 (£) | Taxable bands 2006-07 (£) | ||
|---|---|---|---|
| Starting rate 10% | 0 - 2,090 | Starting rate 10% | 0 - 2,150 |
| Basic rate 22% | 2,091 - 32,400 | Basic rate 22% | 2,150 - 33,300 |
| Higher rate 40% | Over 32,400 | Higher rate 40% | Over 33,300 |
Corporation Tax Rates
| Corporation tax profits 2005-06 (£) | Corporation tax profits 2006-07 (£) | ||
|---|---|---|---|
| Starting rate 10% | 0 - 10,000 | Starting rate zero | N/A |
| Marginal relief | 10,001 - 50,000 | Marginal relief | N/A |
| Small companies' rate 20% | 50,001 - 300,000 | Small companies' rate 19% | 0 - 300,000 |
| Marginal relief | 300,001 - 1,500,000 | Marginal relief | 300,001 - 1,500,000 |
| Main rate 30% | 1,500,001 or more | Main rate 30% | 1,500,001 or more |
REV2: National Insurance Rates
| 2005-06 | 2006-07 | |
|---|---|---|
| Primary threshold | £94 per week | £97 per week |
| Secondary threshold | £94 per week | £97 per week |
| Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit | 11% of £94.01 to £630 per week 1% above £630 per week | 11% of £97.01 to £645 per week 1% above £645 per week |
| Employers’ secondary Class 1 rate | 12.8% on earnings above £94 per week | 12.8% on earnings above £97 per week |
| Class 4 rate | 8% of £4,895 to £32,760 per year 1% above £32,760 per year | 8% of £5,035 to £33,540 per year 1% above £33,540 per year |
| Class 4 lower profits limit | £4,895 per year | £5,035 per year |
| Class 4 upper profits limit | £32,760 per year | £33,540 per year |