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Tax
Rates & Allowances 2005-2006
- Income
Tax
- Pensions
& Savings
- Vehicles
- Corporation
Tax
- Main
Capital Allowances
- Value
Added Tax
- National
Insurance
- Capital
Gains Tax
- Inheritance
Tax
- Stamp
Taxes
- Selected
Rates
INCOME
TAX
|
Rates |
2005-06
|
2004-05
|
Starting
rate band to |
£2,090
|
£2,020
|
|
Tax
rate |
10%
|
10%
|
Basic
rate band - next |
£30,310
|
£29,380
|
|
Non-savings
rate |
22%
|
22%
|
|
Savings
rate |
20%
|
20%
|
|
UK
dividend rate |
10%
|
10%
|
Higher
rate - income over |
£32,400
|
£31,400
|
|
Higher
tax rate |
40%
|
40%
|
|
UK dividend
rate
|
32.5%
|
32.5%
|
|
|
|
|
Allowances
that reduce Taxable Income |
Personal
allowances (PA) |
-
under 65 |
£4,895
|
£4,745
|
|
-
65 to 74 |
£7,090
|
£6,830
|
|
-
75 and over |
£7,220
|
£6,950
|
The
age-related allowances are progressively withdrawn
if income exceeds |
£19,500
|
£18,900
|
Minimum
PA |
£4,895
|
£4,745
|
Minimum
Married Couple's Allowance (MCA) tax reduction |
£228
|
£221
|
* Ages
are at the end of the tax year
|
|
|
|
|
|
Tax
Shelters
|
Enterprise
Investment Scheme up to |
£200,000
|
£200,000
|
Venture
Capital Trust up to |
£200,000
|
£200,000
|
|
|
|
'Rent
a Room' |
Exempt
on gross annual rent |
£4,250
|
£4,250
|
S |
|
|
Construction
Industry Scheme |
Deduction
rate |
18%
|
18%
|
|
|
|
PENSIONS
& SAVINGS
|
Pensions |
Qualifying
contributions of up to £3,600 (before basic rate tax relief
at source) may be made to personal pension schemes, including
Stakeholder schemes. Contributions above this level may be made,
subject to the limits below: |
Overall
% Limit of Net Relevant Earnings |
Age
at 6 April 2005 |
Personal
Pensions
|
Retirement
Annuities
|
35
or under |
17.5
|
17.5
|
36
- 45 |
20
|
17.5
|
46
- 50 |
25
|
17.5
|
51
- 55 |
30
|
20
|
56
- 60 |
35
|
22.5
|
61
- 74 |
40
|
27.5
|
Subject
to maximum earnings of |
£105,600
|
No
Limit
|
|
|
|
ISAs: |
|
Overall
investment limit |
£7,000
|
Including
cash maximum of |
£3,000
|
|
|