Budget 2007

Introduction

Personal Income Tax

National Insurance Contributions

Employees

Savings & Investments

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

 

2007/08

2006/07

 

Allowed at top rate of tax

 

 

Personal Allowance

£5,225

£5,035

Personal Allowance (65-74)*

7,550

7,280

Personal Allowance (75 and over)*

7,690

7,420

Blind Person's Allowance

1,730

1,660

 

Allowed only at 10%

 

 

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

6,285

6,065

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

6,365

6,135

Income Limit for age-related allowances

20,900

20,100

 

+ 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 £2,440 (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.).



 


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