Income Tax
Tax Data 2008 / 2009
INCOME TAX RATES
|
2008/09 (£) |
2007/08 (£) |
Starting rate 10% on first* |
2,320 |
2,230 |
Basic rate (20% for savings income) 22% on next* |
36,000 |
32,370 |
Higher rate 40% on income over |
36,000 |
34,600 |
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*from 2008/09 only applicable on savings income where it is below £2,320.00. |
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Dividends |
|
|
Basic rate taxpayers |
10% |
10% |
Higher rate taxpayers |
32.5% |
32.5% |
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|
Pre-owned assets tax (£5,000 taxable threshold) |
As income |
As income |
|
|
|
Discretionary and Relevant Property Trusts* |
|
|
Basic rate band |
1,000 |
1,000 |
Dividends (rate applicable to trusts - RAT) |
32.5% |
32.5% |
Other income (rate applicable to trusts - RAT) |
40% |
40% |
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*from 6/4/2008 A&M trusts can only be created by a parent's will, all other trusts will fall under the RPT regime. |
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Interest In Possession Trusts |
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|
Dividends |
10% |
10% |
Savings |
20% |
20% |
Other income |
20% |
22% |
INCOME TAX RELIEFS
|
2008/09 |
2007/08 |
Given at marginal rate of income tax |
|
|
Personal allowance (minimum) |
5,435 |
5,225 |
Personal allowance (age 65-74) |
9,030 |
7,550 |
Personal allowance (age 75+) |
9,180 |
7,690 |
|
|
|
Blind Person's Allowance |
1,800 |
1,730 |
|
|
|
Rent-a-room tax free home income* |
4,250 |
4,250 |
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Relief restricted to 10% |
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Married couples/Civil partnerships allowance (age under 75 and born before 6th April 1935) |
6,535 |
6,285 |
Married couples/Civil partnerships allowance (age 75+) |
6,625 |
6,365 |
Married couples/Civil partnerships allowance (minimum) |
2,540 |
2,440 |
|
|
|
Age related reliefs abated by £1 for every £2 of income over |
21,800 |
20,900 |
|
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Child Tax Credit (CTC) |
|
|
Family element |
545 |
545 |
Family element baby addition |
545 |
545 |
Child element |
2,085 |
1,845 |
Disabled child element |
2,540 |
2,440 |
| Severely disabled child element | 1,020 | 980 |
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|
|
Working Tax Credit (WTC) |
|
|
Basic element |
1,800 |
1,730 |
Couples & lone parent element |
1,770 |
1,700 |
30 hour element |
735 |
705 |
Disabled worker element |
2,405 |
2,310 |
| Severe disability element | 1,020 | 980 |
| 50+ return to work payment (16-29 hours) | 1,235 | 1,185 |
| 50+ return to work payment (30+ hours) | 1,840 | 1,770 |
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| Childcare Element of WTC | ||
| Maximum eligible cost for one child | £175 per week | £175 per week |
| Maximum eligible cost for two or more children | £300 per week | £300 per week |
| Percentage of eligible costs covered | 80% | 80% |
Withdrawal Rates for CTC & WTC |
|
|
First income threshold |
6,420 |
5,220 |
First income threshold for CTC only |
15,575 |
14,495 |
First withdrawal rate |
39% |
37% |
Second income threshold |
50,000 |
50,000 |
Second withdrawal rate |
6.67% |
6.67% |
Income increase disregarded |
25,000 |
25,000 |
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Limits for other relief's |
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Enterprise Investment Scheme (EIS) at 20% |
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Maximum Investment |
500,000 |
400,000 |
EIS capital gains re-investment |
Unlimited |
Unlimited |
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Venture Capital Trusts (VCT) @ 30% |
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Maximum Investment |
200,000 |
200,000 |
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