Tax Tables

Income Tax Limits
 Allowance and Reliefs
 Capital Gains Tax
Capital Allowances
Personal Pensions
Enterprise Investment Scheme
Inheritance Tax
Corporation Tax
Charitable Giving
Car Scale Benefit
Van Scale Benefit
Car Fuel Benefit
Inland Revenue Authorised Mileage Rates
VAT
National Insurance Contributions
Stamp Duty

INCOME TAX RATES
Bands £ Rate % Tax on band
£
2004/05
 		   
1-2,020 10 202
2,021-31,400 22 6,463.60
Over 31,400 40
2003/04    
1-1,960 10 196
1,961-30,500 22 6,278.80
Over 30,500 40
* For 2004/05 the rates applicable to dividends are 32.5% (higher rate) and 10% otherwise for individuals, and 32.5% (25% 03/04) within discretionary and accumulation & maintenance trusts.
ALLOWANCE AND RELIEFS

2004/05
(£)

2003/04
(£)
Personal allowance
4,745

4,615
Children's tax credit at 10%***
5,450

5,450
Children's tax credit - baby rate***
10,900

10,900
Age allowance Single person

aged 65-74
aged 75 and over


6,830
6,950



6,610
6,720
Married couple's allowance

aged 65-74
aged 75 and over

 
5,725*
5,795*


5,565*
 5,635*
Age allowance reduced by 1/2 of income over
18,900

18,300
Blind person
1,560

1,510
Enterprise Investment Scheme
200,000**
 150,000**
Venture capital trusts
200,000~
 100,000**
* Relief restricted to 10%
** Relief restricted to 20%   ~ Relief restricted to 40%
*** Reduced by £1 for every £15 of joint income over £50,000
 Back to Top

CAPITAL GAINS TAX
Rates and Allowances

2004/05
(£)
2003/04
(£)
Annual exemption
Individuals, personal repesentatives *
Trusts generally

8,200
4,100

7,900
3,950
CGT rate
Individuals - 10% / 20% / 40%
Settlements - 40%
* Year of death and two subsequent years of assessment
Taper Relief (individuals only)
Gains on business assets
Gains on non-business assets
Complete years after
5 April 98
% of gain chargeable
Equivalent tax rates
%
Complete years after
5 April 98
% of gain chargeable
Equivalent
tax rates
%


Higher Basic

Higher Basic
0
100
40
20
0
100
40
20
1
50
20
10
1
100
40
20
2 or more
25
10
5
2
100
40
20
Disposals post 5/4/00 pre 6/4/02
3
95
38
19
0
100
40
20
4
90
36
18
1
87.5
35
17.5
5
85
34
17
2
75
30
15
6
80
32
16
3
50
20
10
7
75
30
15
4 or more
25
10
5
8
70
28
14
Disposals pre 6/4/00
9
65
26
13
0
100
40
20
10 or more
60
24
12
1 92.5 37 18.5        
2 85 34 17        
3 77.5 34 15.5        
Back to Top
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
Enterprise Zone 100% 25% reducing balance
Scientific Research 100% N/A
Information and Communication Technology Equipment 50% N/A
Energy-saving equipment 100% ** N/A
Low emission cars 100% *** N/A

* Only available to small/medium sized businesses.
** 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.
Back to Top
PERSONAL PENSIONS
Contribution limit - % of net relevant earnings
Age on 6 April 2004
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. £102,000 (2003/04 £99,000)
* Retirement annuity policy limits apply to policies effected before 1 July 1988.
The details are based on the latest available information.
2004/05 maximum contribution to a Stakeholder Scheme without any earnings is £3,600.
 Back to Top
ENTERPRISE INVESTMENT SCHEME

2004/05

Maximum investment £200,000.
Tax relief given at 20%.
Maximum carry back to previous tax year is lower of £25,000 or half the amount invested to 5 October.

INHERITANCE TAX

Rates on cumulative transfers - 2004/05
First £263,000 @ nil% (2003/04 - £255,000)
Over this amount the rate is 20% for lifetime transfers, 40% on death.
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
Back to Top
CORPORATION TAX

Financial Year
2004
(to 31.3.05)
2003
(to 31.3.04)
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.

Companies with taxable profits of less than £50,000 will be subject to a rate of 19% on distributed profits to non-companies.
 Back to Top
CHARITABLE GIVING

Financial Year
2004
(to 5.4.05)
2003
(to 5.4.04)
Give as you earn - gross max
No max
No max
Gift Aid -net -min
- no maximum
No min
No min
Covenanted donations (min duration of convenant 3 yrs)
No limit
No limit
Note: Gift Aid and covenanted donations require deduction of tax at source. If however, an individual has taxed income equal to, or in excess of gross donation, no tax is payable.
Back to Top
CAR SCALE BENEFIT - TO 2004/05
New rules for taxing company cars come into effect from 6 April 2002. See the table below for calculation details.

Car benefit charges for cars with an approved CO2 emissions figure

CO2 emissions in grams per kilometre

Percentage of car's
price to be taxed

2002-03

2003-04

2004-05

 

165

155

145

15*

170

160

150

16*

175

165

155

17*

180

170

160

18*

185

175

165

19*

190

180

170

20*

195

185

175

21*

200

190

180

22*

205

195

185

23*

210

200

190

24*

215

205

195

25*

220

210

200

26*

225

215

205

27*

230

220

210

28*

235

225

215

29*

240

230

220

30*

245

235

225

31*

250

240

230

32*

255

245

235

33**

260

250

240

34***

265

255

245

35****

Diesel Supplements

* Add 3% if car runs solely on diesel.
** Add 2% if car runs solely on diesel.
*** Add 1% if car runs solely on diesel.
**** Maximum charge, so no diesel supplement.

The basic car benefit charge will be the car's price multiplied by the percentage charge for the CO2 emissions band in which the car falls, subject to

  • the addition of any diesel supplement, or

  • discount for cars using alternative fuels and technologies.
    Back to Top
VAN SCALE BENEFIT
Vans (under 3.5 tonnes) including fuel:
Age at end of tax year Under 4 years 4 years and over
2004/05 and 2003/04 £500 £350
CAR FUEL BENEFIT

2004/05 & 2003/04
£

Multiply £14,400 by the
same CO2 %age.
Minm 15% , Maxm 35%

Back to Top
INLAND REVENUE AUTHORISED MILEAGE RATES
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
Passengers Additional 5p  
 

Advisory Fuel Rates For Company Cars
Engine size
(petrol)		 Fuel Cost per mile Engine size
(diesel)		 Fuel Cost per mile
1400cc or less 10p -  
1401 -2000cc 12p up to 2000cc 9p
over 2000cc 14p Over 2000cc 12p
 
Back to Top
VAT

From 1.4.04 From 1.4.03
Standard Rate 17.5% 17.5%
Fuel and Power Rate (Domestic) 5% 5%
VAT on fraction of gross price 7/47 7/47
Annual Turnover Limits(based on previous 12 months) From 1.4.04 From 1.4.03
Registration £58,000 £56,000
Deregistration £56,000 £54,000

 

Private Fuel (3 months) from 1 May 2004
  Petrol Diesel
  VAT inclusive scale charge Liability @ 17.5% VAT inclusive scale charge Liability @ 17.5%
To 1400cc £232 £34.55 £216 £32.17
1401 to 2000cc £293 £43.63 £216 £32.17
Over 2000cc £432 £64.34 £273 £40.65
Back to Top
NATIONAL INSURANCE CONTRIBUTIONS
Class 1 Employed
From 6 April 2004		 Contracted In Contracted Out
On earnings of:
(a) on first £91.00 per week
(b) £91.01 to £610.00 per week
nil
11%
nil
9.4%
(c) Over £610 per week 1% additional liability
Employer Earnings bracket
Up to £91.00 per week nil nil
£91.01 to £610 per week 12.8% 9.3% *
11.8% **
Over £610 12.8% 12.8%
* Contracted out salary related scheme
** Contracted out money purchase scheme


Class 1A: on car & fuel benefit and most other taxable benefits: 12.8%
Class 2 Self-employed: Weekly rate £2.05 once earnings over £4,215 p.a.
Class 3 Voluntary: Weekly rate £7.15
Class 4 Self-employed: 8% on annual profits between £4,745-£31,720.
           (1% on annual profits over £31,720)
 Back to Top

STAMP DUTY
Stocks and marketable securities: 0.5%
Land is charged on full price
 		From 28.3.00
Price is £60,000 or less Nil
Price is over £60,001 and up to £250,000 1%
Price is over £250,001 and up to £500,000 3%
Price is over £500,000 4%
 

Action should not be taken on the strength of information contained herein without obtaining specific advice from our firm first.  
       
 Back to Top