|
|
|
| Cars |
up
to 10,000 miles - 40p |
|
| |
over
10,000 miles - 25p |
|
| Bicycles: |
20p |
|
| Motorcycles: |
24p |
|
|
|
|
|
|
Writing
Down Allowance |
|
Plant and machinery*
|
25%
reducing balance # |
|
Motor cars
|
25%
reducing balance (£3,000 max) |
|
Industrial buildings
|
4%
(straight line) |
|
Agricultural buildings
|
4%
(straight line) |
|
Hotels
|
4%
(straight line) |
* For small and
medium businesses: first year allowances
on expenditure incurred from 2.7.98 to 31.3.04
of 40%. For small businesses (for one year
only) from 5.4.04 this is increased to 50%.
For small businesses:100%
first year allowances on expenditure incurred
between 1.4.00 and 31.3.04 on computers,
software and internet-enabled mobile phones.
|
# 6% on certain
life long assets. |
|
|
|
Capital Gains Tax
|
|
|
2004/5 |
2003/4 |
| Individuals: |
exemption
|
£8,200 |
£7,800 |
|
Balance
of gains (reduced by taper relief)
charged as top slice of income (at
savings rates - ie 10%, 20% or 40%) |
|
| Trusts: |
exemption
|
£4,100 |
£3,950 |
|
balance of gains (reduced by
taper relief)
|
34% |
34% |
*reduced
by taper relief for certain assets |
|
Percentage relief depends on number of complete
years asset owned after 5.4.98 |
| Years of Ownership |
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
| Business assets
(% relief) |
50
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
75
|
| Non-business
assets* (% relief) |
0
|
0
|
5
|
10
|
15
|
20
|
25
|
30
|
35
|
40
|
*Add one extra year of
asset owned before 17.3.98.
|
| |
|
|
|
Car & Fuel Benefits
|
|
Company
Cars 2004/5:
| Percentage
of car's list price taxed |
CO2
emissions in grams per kilometre |
| 15% |
up
to 145 |
| additional
1% |
for
every additional 5 |
| up
to 35% max |
245
and above |
- For diesel cars add a 3% supplement, but
maximum still 35%.
- If the
CO2 figure doesn’t end in a 5 or 0
round down to the nearest 5 or 0.
- Discounts
apply to certain environmentally friendly
cars.
- For
cars registered before 1.1.98 charge is
based on engine size.
|
| 1. |
The
list price includes accessories and
is subject to an upper limit of £80,000. |
| 2. |
The
list price is reduced for capital
contributions made by the employee
up to £5,000. |
| 3. |
Payments
by employees may reduce the benefits. |
Van Benefit
2004/05:
| Van
benefit per vehicle |
Vehicles
under 4 years old |
Vehicles
over 4 years old |
| Unrestricted
private use |
£500 |
£350 |
| No
private use |
£0 |
£0 |
|
| 1. |
The
age is determined at the end of the
tax year. |
| 2. |
Van
benefits include fuel for private
use. |
Car
Fuel Scale Charge:
2004/05:
£14,400 x 'appropriate percentage'
The fuel
scale charge is reduced to nil only if
the employee pays for all private fuel.
|
|
|
|
|
Profits
Band |
Years
to 31.3.05 & 31.3.04 |
|
£ |
% |
|
Starting rate
|
0
- 10,000 |
0 |
|
Marginal starting rate
|
10,001
- 50,000 |
23.75 |
|
Small companies rate
|
50,001-300,000 |
19 |
|
Marginal small companies rate
|
300,001
- 1.5m |
32.75 |
|
Full rate
|
over
1.5m |
30 |
| Starting
rate fraction |
|
19/400 |
| Small
companies fraction |
|
11/400 |
|
|
|
Income Tax Rates
|
| 2004/5 |
2003/04 |
| Band |
Rate |
Band |
Rate |
| £ |
% |
£ |
% |
| 0-2,020 |
10 |
0-1,960 |
10 |
| 2,021-31,400 |
22* |
1,961-30,500 |
22* |
| over
31,400 |
40** |
over
30,500 |
40** |
|
*Except
dividends (10%) and savings income (20%)
**Except
dividends (32.5%)
Other
income taxed first, then savings income
and finally dividends.
|
|
|
|
Income Tax Reliefs
|
| |
2004/5
|
2003/4
|
| |
£
|
£
|
|
Personal allowance
|
under 65
|
4,745 |
4,615 |
|
|
65-74*
|
6,830 |
6,610 |
|
|
75 and over*
|
6,950 |
6,720 |
|
Married couple's allowance (1)
|
aged less than 75 & born before
6.4.35*
|
5,725 |
5,565 |
|
|
75 and over*
|
5,795 |
5,635 |
|
|
min. amount
|
2,210 |
2,150 |
|
Age allowance income limit
|
18,900 |
18,300 |
|
Blind person's allowance
|
1,560 |
1,510 |
|
(1)Qualifies
for relief at 10%.
*reduce age allowance by £1 for every £2 of
excess income over £18,900 |
|
|
|
Inheritance Tax
|
| Death
rate |
Lifetime
rate |
Chargeable
transfers |
| 2004/5 |
2003/4 |
| % |
% |
£'000s |
£'000s |
| - |
- |
0-263 |
0-250 |
| 40 |
20 |
over
263 |
over
250 |
Reliefs: |
|
Annual exemption
|
£3,000
|
|
Small gifts
|
£250
|
Reduced charge on
gifts within 7 years of death:
| years
before death |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
| %
of death charge |
100% |
80% |
60% |
40% |
20% |
|
|
|
|
ISAs
|
| Maximum
investment per year 2004/05 & 2003/04: |
|
|
£
|
|
|
£
|
|
Overall limit
|
7,000
|
|
Overall limit
|
7,000
|
|
Stocks & shares
|
up to 7,000
|
|
Stocks & shares
|
up to 7,000
|
|
Cash
|
up to 3,000
|
|
Cash
|
up to 3,000
|
|
Life assurance
|
up to 1,000
|
|
Life assurance
|
up to 1,000
|
|
|
|
|
|
National Insurance
|
|
Class
1 (employed) (contracted in) (2004/5)
|
Weekly
earnings
|
Employer
|
Employee
|
|
Up
to £91
|
Nil*
|
Nil*
|
|
£91.01
to £610
|
12.8%**
|
11%**
|
|
Over
£610
|
12.8%**
|
£55.66
+ 1%***
|
*Entitlement
to contribution-based benefits retained
for earnings between £77.01 and £91
per week.
**On earnings above £91
***On earnings above £610
| Class
1A (employers) |
12.8%
on employee taxable benefits |
| Class
1B (employers) |
12.8%
on PAYE Settlement Agreements |
| Class
2 (self-employed) |
flat
rate per week £2.05 small earnings
exception p.a. £4,215 |
| Class
3 (voluntary) |
flat
rate per week £7.15 |
| Class
4 (self-employed) |
8%
on profits between £4,745 and
£31,720 plus 1% on profits over
£31,720. |
|
|
|
|
|
Pension Premiums
|
|
%
of net relevant earnings (1999 to
2005):
|
|
| Age
at the beginning of the tax year |
Personal
pensions (%) |
Retirement
annuities(%) |
| 35
or less |
17.5 |
17.5 |
| 36-45 |
20 |
17.5 |
| 46-50 |
25 |
17.5 |
| 51-55 |
30 |
20.0 |
| 56-60 |
35 |
22.5 |
| 61-74 |
40 |
27.5 |
|
Pensions Cap: % of net relevant earnings -
£102,000 (£99,000 in 2003/04)
|
|
|
|
Social Security Benefits
|
| |
weekly
benefit |
| |
2004/5 |
2003/4 |
| Basic
retirement pension: |
|
Single person
|
£79.60 |
£77.45 |
|
Married couple
|
£127.25 |
£123.80 |
Statutory sick
pay (SSP): |
|
Average weekly earnings £79 (£77) or over:
|
£66.15 |
£64.35 |
Statutory maternity
pay (SMP): |
| Average
weekly earnings £77 (£75) or over: |
|
First 6 weeks
|
90%
of weekly earnings |
|
Next 20 (12) weeks
|
£102.80 |
£100.00 |
|
|
|
Stamp Duty
|
| Transfer
of share and securities: |
0.5%
|
Transfers of other property (from 28
March 2000): |
|
Price
|
|
|
up to £60,000
|
nil
|
|
£60,000-£250,000
|
1%
|
|
£250,001-£500,000
|
3%
|
|
over £500,000
|
4%
|
|
|
|
Stamp
duty at the appropriate rate is charged
on the full price not just on any excess
over a threshold.
Disadvantaged areas:
Residential property:
exemption up to £150,000 from 30.11.01.
Commercial property: exemption
up to £150,000 from 30.11.01 to 9.4.03.
Exemption without limit from 10.4.03.
|
|
|
|
|
VAT
|
|
Standard rate
|
17.5%
|
|
Lower rate
|
5%
|
|
Annual registration limit (2003/4:
£56,000)
|
£58,000
|
|
Car Fuel Scale Charges
(for quarters beginning on or after 1 May
2004): |
|
|
Petrol |
Diesel |
| Charge |
VAT |
Charge |
VAT |
| |
£ |
£ |
£ |
£ |
|
1400cc or less
|
232.00 |
34.55 |
216.00 |
32.17 |
|
1401cc to 2000cc
|
293.00 |
43.63 |
216.00 |
32.17 |
| over
2000cc |
432.00 |
64.34 |
273.00 |
40.65 |
|
|
|
