Note: It must be remembered that these proposals are subject
to amendment during the
passage of the Finance Bill.
| PERSONAL TAXATION | 2005/06 | 2004/05 |
 |
||
| Personal allowance | ||
general |
£4,895 |
£4,745 |
| aged 65 or over in year of assessment | £7,090 |
£6,830 |
| aged 75 or over in year of assessment | £7,220 |
£6,950 |
| age allowance income limit | £19,500 |
£18,900 |
| minimum where income exceeds limit | £4,895 |
£4,745 |
| Married couple’s allowance | ||
| (10% relief) | ||
| either spouse born before 6 April 1935 | £5,905 |
£5,725 |
| either spouse aged 75 or over in year of assessment | £5,975 |
£5,795 |
| age allowance income limit | £19,500 |
£18,900 |
| minimum where income exceeds limit | £2,280 |
£2,210 |
Blind person’s allowance |
£1,610 |
£1,560 |
| Starting rate | 10% |
10% |
| on taxable income up to | £2,090 |
£2,020 |
| Basic rate | 22% |
22% |
| on taxable income from starting rate limit up to | £32,400 |
£31,400 |
| Higher rate | 40% |
40% |
| on taxable income over | £32,400 |
£31,400 |
| Lower rate on certain interest income | 20% |
20% |
| Lower rate on dividend income | 10% |
10% |
| Higher rate on dividend income | 32.5% |
32.5% |
 |
||
| COMPANY TAXATION | FY2005 | FY2004 |
|
||
| Corporation tax rates | ||
| All companies (except below) | 30% | 30% |
| Companies with small profits | 19% | 19% |
| — 19% rate limit | £300,000 | £300,000 |
| — marginal relief limit | £1,500,000 | £1,500,000 |
| — marginal relief fraction | 11/400 | 11/400 |
| — marginal rate | 32.75% | 32.75% |
| Starting rate | 0% | 0% |
| — 0% rate limit | £10,000 | £10,000 |
| — marginal relief limit | £50,000 | £50,000 |
| — marginal relief fraction | 19/400 | 19/400 |
| — marginal rate | 23.75% | 23.75% |
| Non-corporate distribution rate | 19% | 19% |
|
||
| CAPITAL GAINS TAX | 2005/06 | 2004/05 |
|
||
| Rate— general | 10%*:20%* :40%* | 10%*:20%*:40%* |
| — trustees and personal representatives | 40%* | 34%* |
| General exemption limit | £8,500 | £8,200 |
| *subject to taper relief where available | ||
| INHERITANCE TAX | Transfers after 5/4/2005 | |
|
||
Threshold Death rate |
£275,000 40% |
|
| VAT | ||
|
||
| Standard rate | 17.5% | |
| Registration threshold after 31 March 2005 |
|
£60,000 |
| (previously £58,000 after 31 March 2004) | ||
| NATIONAL INSURANCE | 2005/06 | |
|
||
| (2004/05 in brackets where different) | ||
| Class 1 Contributions | ||
| Not contracted out The employee contribution is 11% of earnings between £94 (£91) and £630 (£610) p.w. plus 1% of all earnings above £630 (£610) p.w. The employer contribution is 12.8% of all earnings in excess of the first £94 (£91) p.w. Contracted out The ‘not contracted out’ rates for employees are reduced on the band of earnings from £94 (£91) p.w. to £630 (£610) p.w. by 1.6%. For employers, they are reduced on the band of earnings from £94 (£91) p.w. to £630 (£610) p.w. by 3.5% for employees in salary-related schemes or 1.0% for employees in money purchase schemes. In addition, there is an employee rebate of 1.6% and an employer rebate of 3.5% or 1.0%, as appropriate, on earnings from £82 (£79) p.w. up to £94 (£91) p.w. |
||
| Class 1A and 1B contributions | 12.8% | |
| Class 2 contributions | ||
| Flat weekly rate | £2.10 | (£2.05) |
| Exemption limit | £4,345 | (£4,215) |
| Class 3 contributions | ||
| Flat weekly rate | £7.35 | (£7.15) |
| Class 4 contributions | ||
| 8% on the band of profits between £4,895 (£4,745) and £32,760 (£31,720) plus 1% on all profits above £32,760 (£31,720). | ||
|
|
|
|
| click here to print this page |