Budget 2006

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

2006/07

2005/06

Personal Allowance

£5,035

£4,895

Personal Allowance (65-74)*

7,280

7,090

Personal Allowance (75 and over)*

7,420

7,220

Blind Person's Allowance

1,660

1,610


Allowed only at 10%

 

 

Married Couple's Allowance (65-74)+*

6,065

5,905

Married Couple's Allowance (75 and over)+*

6,135

5,975

Income Limit for age-related allowances

20,100

19,500

+ only available if born before 6th April 1935.

* 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 £2,350 (2005/06: £2,280).

Bands

2006/07

2005/06

Lower

£2,150

£2,090

Basic

next 31,150

next 30,310

Higher

over 33,300

over 32,400

 

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

Rates

2006/07 and 2005/06

 

Lower

Basic

Higher

D

I

O

10%

10%

10%

10%

20%

22%

32.5%

40%

40%


Table B
Pension Contributions

For contributions from 6.4.2006, the old rules and limits have all changed.

The maximum annual tax efficient gross contributions (up to age 75) in 2006/07 are:

- individuals:

 

£3,600 or 100% of earnings to £215k

- employers:

 

£215k less employee contributions

Maximum tax-efficient fund (lifetime allowance) where benefits are taken in 2006/07: £1.5m

Only current earnings count for the 100% limit in 2006/07. It is no longer possible to use prior earnings or to carry back contributions to earlier years.


Table C
Benefits In Kind

Car Benefit Assessment 2006/07

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 2006/07 the percentage for a petrol engine remains 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


The benefit is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £14,400.

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


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