|
   
 
 
        
|
Tax
Rates & Allowances 2008/09
Value
Added Tax
|
| From |
2007/08
|
2008/09
|
| Standard
Rate |
17.5%
|
17.5%
|
| VAT
Fraction |
7/47
|
7/47
|
| |
|
Taxable Turnover Limits |
| Registration
-if turnover exceeded limit in last 12 months or is predicted
to over next 30 days |
£64,000
|
£67,000
|
| De-registration
- next year under |
£62,000
|
£65,000
|
| Annual
Accounting Scheme |
£1,350,000
|
£1,350,000
|
| Cash
Accounting Scheme |
£1,350,000
|
£1,350,000
|
|
For
accouting periods beginning on or after 1 May 2007, VAT fuel
scale charges are calculated on the basis of carbon dioxide
emissions.
|
| |
National
Insurance
|
| Class
1 (not contracted out) |
Employer
|
Employee
|
| Lower
earnings limit |
£105
|
0%
|
0%
|
| Payable
on weekly earnings of |
£105
-£770
|
12.8%
|
11%
|
| |
Over
£770 |
12.8%
|
1%
|
| Over
state retirement age |
as
above
|
Nil
|
| Class
1A |
Employer
|
Employee
|
| On
relevant benefits |
12.8%
|
Nil
|
| Class
2 |
| Self
employed |
£2.30
per week
|
| Limit
of net earnings for exception |
£4,835
per annum
|
| |
| Class
3 |
| Voluntary |
£8.10
per week
|
| Class
4* |
| Self
employed on profits |
£5,435
- £40,040
|
8%
|
| |
Excess
over £40,040
|
1%
|
| *
Exception applies if state retirement age was reached by 6 April
2008 |
| |
Capital
Gains Tax
|
| |
2007-08
|
2008-09
|
| Taxed
* |
(savings
rates)
|
18%
|
| Annual
exemption |
- individual |
£9,200
|
£9,600
|
| |
- settlement(s) |
£4,600
|
£4,800
|
| Transfers
between spouses and civil partners living together are exempt. |
| *Entrepreneur's
relief gives a lifetime allowance of £1m on disposals of
trading businesses and shares in trading companies, giving an
effective rate of tax at 10%. Gains in excess of this amount will
suffer tax at 18%. There is a minimum qualifying period of ownership
of 1 year. |
| Inheritance
Tax |
| |
2007-08
|
2008-09
|
| Nil
rate band |
£300,000
|
£312,000
|
| Rate
of tax on balance: |
Chargeable
lifetime transfers |
20%
|
20%
|
| |
Transfers
on,or within, 7 years of death |
40%
|
40%
|
| From
6 April 2008 a claim can be made to transfer any unused nil-rate
bond of the deceased to the surviving spouse or civil partner.
The amount will be expressed as a precentage and this percentage
will be applied to the band in use on the surviving spouse or
civil partner's death and added to their own nil rate. |
|
|
| Main
Exemptions |
- Most
transfers between spouses and civil partners.
- The
first £3,000 of lifetime transfers in any tax year plus
any unused balance from the previous year.
- Gifts
of up to but not exceeding £250 p.a. to any number of
persons.
- Gifts
made out of income that form part of normal expenditure and
do not reduce the standard of living.
- Gifts
in consideration of marriage to bride and/or groom of up to
£5,000 by a parent, £2,500 by a grandparent, or
£1,000 by any other person
- Gifts
to charities, whether made during lifetime or death
|
Tax Rates & Allowances Continue >
|
