* 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 £2,440 (2006/07: £2,350).
Bands
2007/08
2006/07
Lower
£2,230
£2,150
Basic
next 32,370
next 31,150
Higher
over 34,600
over 33,300
Rates differ for Dividend, Interest and Other income within each band:
Rates
2007/08 and 2006/07
Lower
Basic
Higher
D
I
O
10%
10%
10%
10%
20%
22%
32.5%
40%
40%
Table B
Pension Contributions
The maximum annual tax efficient gross contributions (up to age 75) in 2007/08 are:
- individuals:
£3,600 or 100% of earnings to £225k
- employers:
£225k less employee contributions
Maximum tax efficient fund (lifetime allowance) where benefits are taken in 2007/08: £1.6m
Only current earnings count for the 100% limit in 2007/08. 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 2007/08
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 2007/08 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.).
