Income Tax – Capital Gains Tax Calculation Table 2008-2009
Income tax, capital gains tax, and inheritance tax
| £ per year (unless stated) | 2007-08 | Change | 2008-09 |
| Income tax personal and age-related allowances | |||
| Personal allowance (age under 65) | £5,225 | +£810 | £6,035** |
| Married couple’s allowance* – minimum amount | £2,440 | +£100 | £2,540 |
| Capital gains tax annual exempt amount | |||
| Individuals etc. | £9,200 | +£400 | £9,600 |
| Most trustees | £4,600 | +£200 | £4,800 |
| Individual inheritance tax allowance | £300,000 | +£12,000 | £312,000 |
| Pension schemes allowances | |||
| Annual Allowance | £225,000 | +£10,000 | £235,000 |
| Lifetime Allowance | £1,600,000 | +£50,000 | £1,650,000 |
*Married couple’s allowance is given at the rate of 10 per cent.
Income tax: taxable bands
| 2007-08 | £ per year | 2008-09 | £ per year |
| Starting rate: 10% | £0-£2,230 | - | - |
| Basic rate: 22% | £2,231-£34,600 | Basic rate: 20%* | £0-£36,000 |
| Higher rate: 40% | Over £34,600 | Higher rate: 40%* | Over £34,800** |
*There will be a new 10% starting rate for savings income only, with a limit of £2320. If an individual’s taxable non-savings income is above this limit then the 10% savings rate will not be applicable. There are no changes to the 10% dividend ordinary rate or the 32.5% dividend upper rate.
**On 13th May 2008, the Chancellor announced changes to the Budget 2008 income tax rates and taxable bands following the controversial scrapping of the 10% tax band. The personal allowance for the 2008/9 tax year was increased from £5,435 to £6,035. The higher rate threshold announced in Budget 2008 was also reduced from £36,000 to £34,800. You can read the Chancellor’s announcement here.
Corporation tax on profits
| £ per year (unless stated) | 2007-08 | 2008-09 |
| £0-£300,000 | 20% | 21% |
| £300,001 – £1,500,000 | Marginal relief | Marginal relief |
| £1,500,001 or more | 30% | 28% |
National insurance contributions
| £ per week (unless stated) | 2007-08 | Change | 2008-09 |
| Lower earnings limit, primary Class 1 | £87 | +£3 | £90 |
| Upper earnings limit, primary Class 1 | £670 | +£100 | £770 |
| Primary threshold | £100 | +£5 | £105 |
| Secondary threshold | £100 | +£5 | £105 |
| Employees’ primary Class 1 rate between primary threshold and upper earnings limit | 11% | - | 11% |
| Employees’ primary Class 1 rate above upper earnings limit | 1% | - | 1% |
| Employees’ contracted-out rebate – salary-related schemes | 1.6% | - | 1.6% |
| Employees’ contracted-out rebate – money-purchase schemes | 1.6% | - | 1.6% |
| Married women’s reduced rate between primary threshold and upper earnings limit | 4.85% | - | 4.85% |
| Married women’s rate above upper earnings limit | 1% | - | 1% |
| Employers’ secondary Class 1 rate above secondary threshold | 12.8% | - | 12.8% |
| Employers’ contracted-out rebate, salary-related schemes | 3.7% | - | 3.7% |
| Employers’ contracted-out rebate, money-purchase schemes | 1.4% | - | 1.4% |
| Class 2 rate | £2.20 | +£0.10 | £2.30 |
| Class 2 small earnings exception (per year) | £4,635 | +£190 | £4,825 |
| � Special Class 2 rate for share fishermen | £2.85 | +0.10 | £2.95 |
| Special Class 2 rate for volunteer development workers | £4.35 | +£0.15 | £4.50 |
| Class 3 rate (per week) | £7.80 | £0.30 | £8.10 |
| Class 4 lower profits limit (per year) | +£5,225 | +£210 | £5,435 |
| Class 4 upper profits limit (per year) | £34,840 | +£5,200 | £40,040 |
| Class 4 rate between lower profits limit and upper profits limit | 8% | - | 8% |
| Class 4 rate above upper profits limit | 1% | - | 1% |
Child Benefit and Guardian’s Allowance rates
| £ per week | 2007-08 | Change | 2008-09 |
| Eldest/Only Child | £18.10 | +£0.70 | £18.80 |
| Other Children | £12.10 | +£0.45 | £12.55 |
| Guardian’s Allowance | £12.95 | +£0.50 | £13.45 |
Stamp taxes and duties
Transfers of land and buildings (consideration paid)
Rate
Residential in disadvantaged areas
Residential outside disadvantaged areas
Non-residential
Total value of consideration
Zero
£0 – £150,000
£0 – £125,000
£0 – £150,000
1%
Over £150,000 – £250,000
Over £125,000 – £250,000
Over £150,000 – £250,000
3%
Over £250,000 – £500,000
Over £250,000 – £500,000
Over £250,000 – £500,000
4%
Over £500,000
Over £500,000
Over £500,000
New leases (lease duty)
Duty on the premium is the same as for transfers of land (except that special rules apply for non-residential land and property premium where rent exceeds £1,000 annually. The rules no longer apply to residential property from 12 March 2008). Duty on the rent is charged on any part of the net present value (NPV) which exceeds the threshold.
Rate
Net Present Value of rent
Residential in disadvantaged areas
Residential outside disadvantaged areas
Non-residential
Slice of NPV
Zero
£0 – £150,000
£0 – £125,000
£0 – £150,000
1%
Over £150,000
Over £125,000
Over £150,000
Transfers of shares and stocks
The rate of stamp duty/stamp duty reserve tax on the transfer of shares and securities is unchanged at 0.5 per cent for 2008-09.
Vehicle excise duty for Private and Light Goods Vehicles
Pre-graduated VED (registered before March 2001)
| £ per year | Change | New rate |
| 1549cc and below | +£5 | £120 |
| above 1549cc | +£5 | £185 |
Graduated VED for Private Vehicles (registered from March 2001)
| £ per year VED band |
CO2 (g/km) | Change | Alternative Fuel cars | Petrol and Diesel cars |
| A | 100 and below | - | £0 | £0 |
| B | 101 to 120 | - | £15 | £35 |
| C | 121 to 150 | +£5 | £100 | £120 |
| D | 151 to 165 | +£5 | £125 | £145 |
| E | 166 to 185 | +£5 | £150 | £170 |
| F | 186 to 225 | +£5 | £195 | £210 |
| G* | 226 and above | +£100 | £385 | £400 |
*for new cars registered from 23 March 2006
Vehicle excise duty for motorcycles
| £ per year | Change | New rate |
| 150cc and below | - | £15 |
| 151-400cc | +£1 | £33 |
| 401-600cc | +£1 | £48 |
| above 600cc | +£2 | £66 |
Changes to VED rates will take effect from 13 March 2008.
