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Budget
2008: Tax tables
Income tax, capital gains tax, and inheritance tax
| £ per year (unless stated) |
2007-08 |
Change |
2008-09 |
| Income tax personal and
age-related allowances |
| Personal allowance (age under 65) |
£5,225 |
+£210 |
£5,435 |
| Personal allowance (age 65-74) |
£7,550 |
+£1,480 |
£9,030 |
| Personal allowance (age 75 and over) |
£7,690 |
+£1,490 |
£9,180 |
| Married couple's allowance* (aged less than 75
and born before 6th April 1935) |
£6,285 |
+£250 |
£6,535 |
| Married couple's allowance* (age 75 and over) |
£6,365 |
+£260 |
£6,625 |
| Married couple's allowance* - minimum amount |
£2,440 |
+£100 |
£2,540 |
| Income limit for age-related allowances |
£20,900 |
+£900 |
£21,800 |
| Blind person’s allowance |
£1,730 |
+£70 |
£1,800 |
| Capital gains tax annual
exempt amount |
| Individuals etc. |
£9,200 |
+£400 |
£9,600 |
| Most trustees |
£4,600 |
+£200 |
£4,800 |
| Individual inheritance tax allowance |
£300,000 |
+£12,000 |
£312,000 |
| Pension schemes allowances |
| Annual Allowance |
£225,000 |
+£10,000 |
£235,000 |
| Lifetime Allowance |
£1,600,000 |
+£50,000 |
£1,650,000 |
* Married couple's allowance is given at the rate of 10%.
Income tax: Taxable bands
| 2007-08 |
£ per year |
2008-09 |
£ per year |
| Starting rate: 10% |
£0-£2,230 |
- |
- |
| Basic rate: 22% |
£2,231-£34,600 |
Basic rate: 20%* |
£0-£36,000 |
| Higher rate: 40% |
Over £34,600 |
Higher rate: 40%* |
Over £36,000 |
* There will be a new 10% starting rate for savings income
only, with a limit of £2320. If an individual’s taxable
non-savings income is above this limit then the 10% savings
rate will not be applicable. There are no changes to the 10%
dividend ordinary rate or the 32.5% dividend upper rate.
Corporation tax on profits
| £ per year (unless stated) |
2007-08 |
2008-09 |
| £0-£300,000 |
20% |
21% |
| £300,001 - £1,500,000 |
Marginal relief |
Marginal relief |
| £1,500,001 or more |
30% |
28% |
National insurance contributions
| £ per week (unless stated) |
2007-08 |
Change |
2008-09 |
| Lower earnings limit, primary Class 1 |
£87 |
+£3 |
£90 |
| Upper earnings limit, primary Class 1 |
£670 |
+£100 |
£770 |
| Primary threshold |
£100 |
+£5 |
£105 |
| Secondary threshold |
£100 |
+£5 |
£105 |
| Employees’ primary Class 1 rate between primary
threshold and upper earnings limit |
11% |
- |
11% |
| Employees’ primary Class 1 rate above upper
earnings limit |
1% |
- |
1% |
| Employees’ contracted-out rebate -
salary-related schemes |
1.6% |
- |
1.6% |
| Employees’ contracted-out rebate -
money-purchase schemes |
1.6% |
- |
1.6% |
| Married women’s reduced rate between primary
threshold and upper earnings limit |
4.85% |
- |
4.85% |
| Married women’s rate above upper earnings limit |
1% |
- |
1% |
| Employers’ secondary Class 1 rate above
secondary threshold |
12.8% |
- |
12.8% |
| Employers’ contracted-out rebate, salary-related
schemes |
3.7% |
- |
3.7% |
| Employers’ contracted-out rebate, money-purchase
schemes |
1.4% |
- |
1.4% |
| Class 2 rate |
£2.20 |
+£0.10 |
£2.30 |
| Class 2 small earnings exception (per year) |
£4,635 |
+£190 |
£4,825 |
| • Special Class 2 rate for share fishermen |
£2.85 |
+0.10 |
£2.95 |
| Special Class 2 rate for volunteer development
workers |
£4.35 |
+£0.15 |
£4.50 |
| Class 3 rate (per week) |
£7.80 |
£0.30 |
£8.10 |
| Class 4 lower profits limit (per year) |
+£5,225 |
+£210 |
£5,435 |
| Class 4 upper profits limit (per year) |
£34,840 |
+£5,200 |
£40,040 |
| Class 4 rate between lower profits limit and
upper profits limit |
8% |
- |
8% |
| Class 4 rate above upper profits limit |
1% |
- |
1% |
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