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 - £36,000 £2,230 - £34,600 £2,150 - £33,300
Higher Rate of Income Tax 40% 40% 40%
Higher Tax Rate Applies Above £36,000 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)


5,435 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

* Abatement of Relief for age allowance by £1 for every £2 over income limit.
** This allowance attracts relief at a rate of 10% .

Tax Homepage | Tax Timetable | Personal Tax Rates and Allowances | Corporation Tax Rates