Tax Rates & Tables

TAX RATES

INCOME TAX RATES
Bands £	Rate %	Tax on band £

2005/06

1-2,090	10	209.00
2,091-32,400	22	6,668.20
Over 32,400	40

2004/05

1-2,020	10	202.00
1,961-31,400	22	6,463.60
Over 31,400	40

* For 2005/06 the rates applicable to dividends are 32.5% (higher rate) and 10% otherwise for individuals and discretionary trusts.

ALLOWANCE AND RELIEFS
	2005/06 (£)	2004/05 (£)

Single person's allowance	4,895	4,745

Age allowance Single person aged 65-74 aged 75 and over	7,095 7,220	6,830 6,950

Married couple's allowance (born before 6 April 1935) aged 65-74 aged 75 and over	5,905* 5,975*	5,725* 5,795*

Age allowance reduced by 1/2 of income over	19,500	18,900

Blind person	1,610	1,560

Enterprise Investment Scheme	200,000**	200,000**

Venture capital trusts	200,000***	200,000**

* Relief restricted to 10% Relief restricted to 20% * Relief restricted to 40%

CAPITAL GAINS TAX
Rates and Allowances

	2005/06 (£)	2004/05 (£)

Annual exemption individuals, personal repesentatives * settlements	8,500 4,250	8,200 4,100

CAPITAL ALLOWANCES
	First Year/Initial Allowances	Writing-down allowance

Plant and Machinery	50%	25% reducing balance
Industrial Buildings	N/A	4% straight line
Agricultural Buildings	N/A	4% straight line
Energy-saving equipment	100% *	N/A
Low emission cars	100% **	N/A

* Equipment must be included in Engergy Technology List. ** Car registered on / after 17 April 2002 and emits no more than 120gm/km CO2 or is electrically propelled.

PERSONAL PENSIONS
Contribution limit - % of net relevant earnings

Age on 6 April 2005	PPS	RAP *

35 or less	17.5	17.5
36-45	20.0	17.5
46-50	25.0	17.5
51-55	30.0	20.0
56-60	35.0	22.5
61-74	40.0	27.5

N.R.E. cap for P.P.S. £105,600 (2004/05 £102,000) * Retirement annuity policy limits apply to policies effected before 1 July 1988. The details are based on the latest available information. 2005/06 maximum contribution to a PPS without any earnings is £3,600.

INHERITANCE TAX
Rates on cumulative transfers - 2005/06 First £275,000 @ nil% Excess @ 40%

Exemptions					£

Annual gifts per donor					3,000
Small gifts per donee					250

For marriage

- parent					5,000
- grandparent					2,500
- other					1,000

Gifts to individuals and certain trusts made more than seven years before death.

Charge on gifts within seven years of death

Intervening years	0-3	3-4	4-5	5-6	6-7
% of full charge	100	80	60	40	20

CORPORATION TAX
	Financial Year
	2005 (to 31.3.06)	2004 (to 31.3.05)

Full rate
Profits over £1,500,000	30%	30%
£0-£10,000	0%*	0%

Effective marginal rate on profits between £10,001 and £50,000	23.75%*	23.75%

Marginal relief fraction	19/400	19/400

£50,001 and £300,000	19%	19%

Effective marginal rate on profits between £300,000 and £1,500,000	32.75%	32.75%

Marginal relief fraction	11/400	11/400

Full rate of tax always applies to close investment holding companies. * With effect for distributions made on or after 1 April 2004, the benefit of the starting rate and the marginal starting rate applies only to undistributed profits and profits distributed to other companies. Profits chargeable to corporation tax below the threshold for the small companies’ rate that have been distributed to non-company shareholders are subject to a minimum rate (the ‘ non-corporate distribution rate’:NCD rate which, for the financial years 2004 and 2005, is equivalent to the small companies rate). Profits distributed to other bodies subject to corporation tax are disregarded for the purpose of establishing whether the NCD rate applies.

FIXED PROFIT CAR SCHEME
Approved Inland Revenue tax-free mileage rates

From 6 April 2002
	First 10,000 business miles in the tax year	Each mile over 10,000 miles in the tax year

Cars and vans	40p	25p
Motor cycles	24p	24p
Bicycles	20p	20p

VAT
	From 1.4.05	From 1.4.04

Standard Rate	17.5%	17.5%
Fuel and Power Rate	8%	8%
VAT on fraction of gross price	7/47	7/47

Annual Turnover Limits(based on previous 12 months)	From 1.4.05	From 1.4.04

Registration	£60,000	£58,000
Deregistration	£58,000	£56,000

NATIONAL INSURANCE CONTRIBUTIONS
Class 1 Employed From 6 April 2005	Contracted In	Contracted Out

On earnings of: (a) on first £94.00 per week (b) £94.01 to £630.00 per week	nil 11%	nil 9.4%
(c) Over £630 per week	1%	1%

Employer Earnings bracket

Up to £94.00 per week	nil	nil
£94.01 to £630 per week	12.8%	12.8%
Over £630	12.8%	12.8%

Class 1A: on car & fuel benefit and most other taxable benefits: 12.8% Class 2 Self-employed: Weekly rate £2.10 once earnings over £4,345 p.a. Class 3 Voluntary: Weekly rate £7.35; £382.80 per annum. Class 4 Self-employed: 8% on annual profits between £4,895-£32,760 and 1% above £32,760.

STAMP DUTY
Stocks and marketable securities: 0.5%

Land is charged on full price
From 17.03.05

Price is £120,000 or less	Nil
Price is over £120,000 and up to £250,000	1%
Price is over £250,000 and up to £500,000	3%
Price is over £500,000	4%