Budget 2004


Introduction

Personal Income Tax

Tax Credits

National Insurance Contributions

Employees

Pensioners

Savings

Trusts

Capital Gains Tax

Inheritance Tax

Stamp Duty / Stamp Duty Land Tax

Corporation Tax

Business Tax

Value Added Tax

Other Measures

Tax Tables

National Insurance


Tax Tables

Table A
Allowances and Reliefs

 

2004/05

2003/04

Allowed at top rate of tax

 

 

Personal Allowance

£4,745

£4,615

Personal Allowance (65-74)*

6,830

6,610

Personal Allowance (75+)*

6,950

6,720

Blind Person's Allowance

1,560

1,510

 

Allowed only at 10%

 

 

Married Couple's Allowance (65-74)*

5,725

5,565

Married Couple's Allowance (75+)*

5,795

5,635

Income Limit for age-related allowances

18,900

18,300

 

* Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple's allowance. MCA is reduced to a minimum of £2,210 (2003/04: £2,150).

 

Bands

2004/05

2003/04

Lower

£2,020

£1,960

Basic

next 29,380

next 28,540

Higher

over 31,400

over 30,500

 

Rates differ for Dividend, Interest and Other income within each band:

Rates

2004/05 and 2003/04

 

D

I

O

Lower

10%

10%

10%

Basic

10%

20%

22%

Higher

32.5%

40%

40%

 

Table B
Personal Pensions: earnings cap £102,000 (2003/04 - £99,000)

 

Percentage

2004/05

2003/04

Age on 6 April 2004 (2003 for 2003/2004)

 

maximum

maximum

35 or less

17.5%

£17,850

£17,325

36 - 45

20.0%

20,400

19,800

46 - 50

25.0%

25,500

24,750

51 - 55

30.0%

30,600

29,700

56 - 60

35.0%

35,700

34,650

61 - 74

40.0%

40,800

39,600

 

Table C
Benefits In Kind

Car Benefit Assessment 2004/05

Charge based on a percentage of the initial list price of the car; the percentage depends on the carbon dioxide emission ratings of the car, if it has one. For older cars without a rating, the percentage depends on engine capacity.

For 2004/05 the percentage for a petrol engine is 15% for ratings up to 145g/km. The percentage increases by 1% for every complete 5g/km in excess of this (ie at 150, 155 etc), to a maximum of 35%. Diesel cars have 3% added to this figure, but still have a maximum percentage of 35%.

 

Car Fuel Assessment


For 2004/05 the benefit will be calculated using the same percentage as that used for the car benefit, applied to a standard figure of £14,400.

The taxable amount will therefore be between £2,160 (15% - min.) and £5,040 (35% - max.).


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