Tax Rates 2007/08

Personal Allowances

Personal Allowance £5,225
65 – 74 Years £7,550

Income Tax Rates

£0 – £2,230 10%
£2,231 – £34,600 22%
£34,600 Over 40%

National Insurance Contributions

Class 1 employees (Weekly)
First £100 NIL
On Balance up to £670 11%
Over £670 1%

Employers NCO

First £100 NIL
On Balance up to £670 12.8%
Over £670 12.8%

Class 2 (Self Employed) £2.20 per week
Class 4 (Self Employed) 8% of profits between £5,225 and £34,840. 1% thereafter

Capital Gains Tax
Annual Exemption £9,200

Rates 10%, 20% or 40%
Taper relief for business asset is 50% in year 1, and 75% thereafter
Taper relief for non business assets is 5% year 3, 10% year four, 15% year five and so on, maximum 10 years 40% gain relief.

Allowances 2007/08

Tax Free Mileage Allowances

Up to 10,000 business miles 40p
Over 10,000 business miles 40p
Each passenger making trip 5p
Motorcycles 24p
Cycles 20p

Inheritance Tax

Death Rates
Up to 285,000 NIL
Over 285,000 40%
Chargeable lifetime transfers are initially taxed at 20%. Annual gifts of up to £3,000 per donor are exempt.

Stamp Duty

Shares 0.5%
Rounded up to the nearest £5.00

Transfers of Land and Buildings

Residential and non residential
£150,000 or less NIL
£150,001 to £250,000 1%
£250,001 to £500,000 3%
Over £500,000 4%

Value Added Tax

Standard rate 17.5%
Lower Rate 5%
Registration level £61,000 pa
Deregistration limit £59,000 pa

Scale charges

Quarterly returns
Up to 1,400cc
£246 petrol £236 diesel

1401 to 2000cc
£311 petrol £236 diesel

Over 2000cc
£457 petrol £236 diesel