Budget 2005

Introduction

Personal Income Tax

Tax Credits

National Insurance Contributions

Employees

Pensioners

Savings

Trusts

Capital Gains Tax

Stamp Duty Land Tax

Inheritance Tax

Corporation Tax

Business Tax

Value Added Tax

Other Measures

Tax Tables

National Insurance

 


Tax Tables

 

Table A
Allowances and Reliefs

Allowed at top rate of tax

2005/06

2004/05

Personal Allowance

£4,895

£4,745

Personal Allowance (65-74)*

7,090

6,830

Personal Allowance (75+)*

7,220

6,950

Blind Person's Allowance

1,610

1,560

 

Allowed only at 10%

 

 

Married Couple's Allowance (65-74)*

5,905

5,725

Married Couple's Allowance (75+)*

5,975

5,795

Income Limit for age-related allowances

19,500

18,900


* 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 £2,280 (2004/05: £2,210).

 

Bands

2005/06

2004/05

Lower

£2,090

£2,020

Basic

next 30,310

next 29,380

Higher

over 32,400

over 31,400

 

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

Rates

2005/06 and 2004/05

 

Lower

Basic

Higher

D

I

O

10%

10%

10%

10%

20%

22%

32.5%

40%

40%

 

Table B
Personal Pensions: earnings cap £105,600 (2004/05 - £102,000)

 

Percentage

2005/06

2004/05

Age on 6 April 2005 (2004 for 2004/2005)

 

maximum

maximum

35 or less

17.5%

£18,480

£17,850

36 - 45

20.0%

21,120

20,400

46 - 50

25.0%

26,400

25,500

51 - 55

30.0%

31,680

30,600

56 - 60

35.0%

36,960

35,700

61 - 74

40.0%

42,240

40,800

 

Table C
Benefits In Kind

Car Benefit Assessment 2005/06

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 2005/06 the percentage for a petrol engine is 15% for ratings up to 140g/km. The percentage increases by 1% for every complete 5g/km in excess of this (ie at 145, 150 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 2005/06 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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