PERSONAL TAXATION 2004/2005
| Income Tax Allowance |
2004/2005 |
2003/2004 |
Personal Allowance: |
(£) |
(£) |
| - under 65 |
4,745 |
4,615 |
| - 65-74 |
6,830 |
6,610 |
| - 75 and over |
6,950 |
6,720 |
|
Age related personal allowances are reduced by 50% of excess over age allowance income limit (but not below level of minimum personal allowances). | ||
|
2004/2005 |
2003/2004 | |
Married Couples Allowance: |
(£) |
(£) |
|
- under 75* |
2,210 |
2,150 |
|
- 75 and over |
5,725 |
5,565 |
|
Allowance restricted to relief at 10%. *Where at least one claimant was born before 6 April 1935 | ||
|
|
2004/05 |
2003/04 |
Income Tax Rates: |
(£) |
(£) |
| - under 65 |
0-2,020 - 10% |
0-1,960 - 10% |
| - 65-74 |
2,021-29,380 - 22% |
1,961-28,540 - 22% |
| - 75 and over |
over 31,400 - 40% |
over 30,500 - 40% |
|
Savings income (i.e. interest) is taxed at 20% for basic rate taxpayers and 40% for higher rate taxpayers. Investment income (i.e. dividends) is taxed at 10% for basis rate taxpayers and 32.5% for higher rate taxpayers. | ||
|
|
2004/05 |
2003/04 |
Capital Gains Tax: |
(£) |
(£) |
| Annual Allowance: |
8,200 |
7,900 |
|
The entire value of an estate in excess of the tax free threshold is taxed at a standard rate of 40%. | ||
|
|
2004/05 |
2003/04 |
Inheritance Tax: |
(£) |
(£) |
| Nil Rate Band: |
263,000 |
255,000 |
|
The entire value of an estate in excess of the tax free threshold is taxed at a standard rate of 40%. | ||
For Further and more in depth taxation information follow the link to the Inland Revenue:
