Tax Rates
Capital Gains Tax: Individuals and Trustees| Annual exempt amount | 2005-06 (£) | 2006-07 (£) | 2007-08 (£) |
| Individuals etc* | 8 500 | 8 800 | 9 200 |
| Other trustees | 4 250 | 4 400 | 4 600 |
Rates and Allowances -Corporation Tax
Corporation Tax on profits - figures
| Rates limits and fractions for financial years starting 1 April | 2006 | 2007 |
| Main rate of corporation tax | 30% | 30% |
| Small companies' rate (SCR) | 19% | 20% |
| SCR can be claimed by qualifying companies with profits at an annual rate not exceeding | £300,000 | £300,000 |
| Marginal small companies' relief (MSCR) lower limit | £300,000 | £300,000 |
| MSCR upper limit | £1,500,000 | £1,500,000 |
| MSCR fraction | 11/400 | 1/40 |
| Special rate for unit trusts and open-ended investment companies | 20% | 20% |
Income Tax Allowances
The Chancellor announces the rates of allowances at the Pre-Budget Report which precedes the start of the tax year to which they relate. Generally speaking, Pre-Budget Report takes place in November or December.
Corporation Tax on profits - figures
| Income tax allowances | 2006-07 (£) | 2007-08 (£) |
| Personal allowance | 5,035 | 5,225 |
| Personal allowance for people aged 65-74 (1) | 7,280 | 7,550 |
| Personal allowance for people aged 75 and over (1) | 7,420 | 7,690 |
| Married couple's allowance (born before 6th April 1935 but aged under 75) (1) (2) | 6,065 | 6,285 |
| Married couple's allowance - aged 75 and over (1) (2) | 6,135 | 6,365 |
| Income limit for age-related allowances | 20,100 | 20,900 |
| Minimum amount of married couple's allowance | 2,350 | 2,440 |
| Blind person's allowance | 1,660 | 1,730 |
(1) - These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. They will never be less than the basic Personal allowance or minimum amount of Married Couple's allowance.
(2) - Tax relief for the Married Couple's allowance is given at the rate of 10 per cent.
Taxable Bands
The Chancellor announces the taxable bands and the rates of tax at the Budget Report which precedes the start of the tax year to which they relate. Generally speaking, Budget takes place in March.
Taxable Bands table
| Taxable Bands Allowances | 2006-07 (£) | 2007-08 (£) |
| Starting rate 10% | 0 - 2,150 | 0 - 2,230 |
| Basic rate 22% | 2,151 - 33,300 | 2,231 - 34,600 |
| Higher rate 40% | over 33,300 | over 34,600 |
Rates and Allowances - National Insurance Contributions
National Insurance - Rates and Allowances
| £ per week | 2006-07 | 2007-08 |
| Lower earnings limit, primary Class 1 | £84 | £87 |
| Upper earnings limit, primary Class 1 | £645 | £670 |
| Primary threshold | £97 | £100 |
| Secondary threshold | £97 | £100 |
| Employees' primary Class 1 rate between primary threshold and upper earnings limit | 11% | 11% |
| Employees' primary Class 1 rate above upper earnings limit | 1% | 1% |
| Employees' contracted-out rebate | 1.6% | 1.6% |
| Married women's reduced rate between primary threshold and upper earnings limit | 4.85% | 4.85% |
| Married women's rate above upper earnings limit | 1% | 1% |
| Employers' secondary Class 1 rate above secondary threshold | 12.8% | 12.8% |
| Employers' contracted-out rebate, salary-related schemes | 3.5% | 3.7% |
| Employers' contracted-out rebate, money-purchase schemes | 1% | 1.4% |
| Class 2 rate | £2.10 | £2.20 |
| Class 2 small earnings exception | £4,465 per year | £4,635 per year |
| Special Class 2 rate for share fishermen | 2.75 | 2.85 |
| Special Class 2 rate for volunteer development workers | 4.20 | 4.35 |
| Class 3 rate | 7.55 | 7.80 |
| Class 4 lower profits limit | 5, 035 per year | 5, 225 per year |
| Class 4 upper profits limit | 33, 540 per year | 34, 840 per year |
| Class 4 rate between lower profits limit and upper profits limit | 8% | 8% |
| Class 4 rate above upper profits limit | 1% | 1% |
VAT RATES
17.5% of all taxable supplies
|
