Tax Rates and Allowances
| 2006-07 (£) | 2007-08 (£) | Increase (£) | |
|---|---|---|---|
| INCOME TAX ALLOWANCES: | |||
| Personal allowance | 5,035 | 5,225 | +190 |
| CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT: | |||
| Individuals etc: | 8,800 | 9,200 | +400 |
| Other trustees: | 4,400 | 4,600 | +200 |
| Inheritance tax threshold | 285,000 | 300,000 | 15,000 |
| PENSIONS SCHEMES: | |||
| Annual allowance: | £215,000 | £225,000 | +10,000 |
| Lifetime allowance: | 1,500,000 | 1,600,000 | +100,000 |
Taxable Bands
| Taxable bands 2006-07 (£) | Taxable bands 2007-08 (£) | ||
|---|---|---|---|
| Starting rate 10% | 0 - 2,150 | Starting rate 10% | 0 - 2,230 |
| Basic rate 22% | 2,150 - 32,400 | Basic rate 22% | 2,231 - 34,600 |
| Higher rate 40% | Over 33,300 | Higher rate 40% | Over 34,600 |
Corporation Tax Rates
| Band | Corporation tax profits 2006-07 (£) | Corporation tax profits 2007-08 (£) |
|---|---|---|
| 0 - 300,000 | 19% | * 20% |
| 300,001 - 1,500,000 | Marginal relief | Marginal relief |
| 1,500,001 or more | 30% | 30% |
* The Small companies rate rises from 19% to 20% in April 2007, but then to 21% in April 2008 and 22% in April 2009.
REV2: National Insurance Rates
| 2006-07 | 2007-08 | |
|---|---|---|
| Primary threshold | £97 per week | £100 per week |
| Secondary threshold | £97 per week | £100 per week |
| Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit | 11% of £97.01 to £645 per week 1% above £645 per week | 11% of £100.01 to £670 per week 1% above £670 per week |
| Employers’ secondary Class 1 rate | 12.8% on earnings above £97 per week | 12.8% on earnings above £100 per week |
| Class 4 rate | 8% of £5,035 to £33,540 per year 1% above £33,540 per year | 8% of £5,225 to £34,840 per year 1% above £34,840 per year |
| Class 4 lower profits limit | £5,035 per year | £5,225 per year |
| Class 4 upper profits limit | £33,540 per year | £34,840 per year |
For further rates and allowances and historic tables see HMRC.