Personal Tax Rates and Allowances
| Tax Rates Summary | 2008/09 | 2007/08 | 2006/07 |
| Lower Rate of Income Tax | Abolished |
10% |
10% |
| Lower Rate Applies | Abolished |
£0 - £2,230 |
£0 - £2,150 |
| Basic Rate of Income Tax | 20% |
22% |
22% |
| Basic Rate Applies | £0 - £34,800* |
£2,230 - £34,600 |
£2,150 - £33,300 |
| Higher Rate of Income Tax | 40% |
40% |
40% |
| Higher Tax Rate Applies | Above £34,800* |
Above £34,600 |
Above £33,300 |
| Capital Gains Tax (Individuals) | 2008/09 | 2007/08 | 2006/07 |
| - Rate of Tax | 18% | 10% to 40% | 10% to 40% |
| - Annual Exemption | £9,600 | £9,200 | £8,800 |
| Inheritance Tax Threshold | 2008/09 | 2007/08 | 2006/07 |
| - Nil Rate Bandnd | £312,000 | £300,000 | £285,000 |
| Personal Tax Allowances | 2008/09 | 2007/08 | 2006/07 | |
| £ | £ | £ | ||
| Personal Allowance
|
(aged 64 and under)
|
6,035* | 5,225 | 5,035 |
| (aged 65-74) **
|
9,030 | 7,550 | 7,280 | |
|
|
(aged 75 and over) **
|
9,180 | 7,690 | 7,420 |
| Married Couples Allowance ***
|
(If born before 6 April 1935)
|
6,535 | 6,285 | 6,065 |
| (aged 75 and over)
|
6,625 | 6,365 | 6,135 | |
| Blind Persons | 1,800 | 1,730 | 1,660 | |
Age Allowance Lower Income Limited |
21,800 | 20,900 | 20,100 | |
* Revised amounts as announced by the Chancellor on 13 May 2008
**
Abatement of Relief for age allowance by £1 for every £2 over
income limit.
*** This allowance attracts relief at a rate of 10% .
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