What
does that mean? |
Tax rates and
allowances are the figures used to calculate tax liabilities and
are reviewed annually in the budget.
The main Current
Rates for 2006/2007 are:
| Allowances |
Personal Allowance
£5,035
(may increase if over 65)
Married Couples Allowance (over 65)*
£6,065
(relief at 10%)
Married
Couples Allowance (over 75)**
£6,135
(relief at 10%)
Blind Persons Allowance
£1,660
(relief at 10%)
* Elder spouse aged under 75 and either spouse born before 6th April 1935.
** Either spouse aged 75 and over.
(Both Married Couples Allowances are reduced by £1 for every £2 of income above £19,500)
|
| Tax
Rates |
|
Lower Tax Rate
on
income from £2,150 (10%)
Basic
Tax Rate
on
income from £2,151 £33,300
(22%, 20% on savings
and
capital gains)
Higher Tax Rate
on income from £33,301
and upwards
(40%)
|
| Miscellaneous |
National
Insurance
Class
2 Exception £4,465
National
Insurance
Class
4 Band £5,035
to £33,540 at 8%
Over £33,540 at 1%
Capital Gains Tax Exemption £8,800
|
|