Budget 2008

Tax Tables

Table A - Allowances and Reliefs

Table A
Allowances and Reliefs

2008/09

2007/08

Allowed at top rate of tax

Personal Allowance

£5,435

£5,225

Personal Allowance (65-74)*

9,030

7,550

Personal Allowance (75 and over)*

9,180

7,690

Blind Person's Allowance

1,800

1,730

Allowed only at 10%

Married Couple's Allowance (65-74)+*

6,535

6,285

Married Couple's Allowance (75 and over)+*

6,625

6,365

Income Limit for age-related allowances

21,800

20,900

+ only available if born before 6th April 1935.

* Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple's allowance. MCA is reduced to a minimum of £2,540 (2007/08: £2,440).

Bands

2008/09

2007/08

Starting

£2,230

Basic

36,000

32,370

Higher

over 36,000

over 34,600

* Starting rate band within basic rate band for savings income only: £2,320.

Rates differ for General, Interest and Dividend income within each band:

Rates	2008/09			2007/08
	G	I	D	G	I	D
Starting	N/A	10%	10%	10%	10%	10%
Basic	20%	20%	10%	22%	20%	10%
Higher	40%	40%	32.5%	40%	40%	32.5%
General income (salary, profit, rent) uses starting rate and basic rate bands before savings income. Dividends are taxed as the 'top slice' of income.

Table B - Pension Contributions

The maximum annual tax efficient gross contributions (up to age 75) in 2008/09 are:

individuals: £3,600 or 100% of earnings to £235,000
employers: £235,000 less employee contributions

Maximum tax efficient fund (lifetime allowance) where benefits are taken in 2008/09: £1.65m.

Only current earnings count for the 100% limit. It is no longer possible to use prior earnings or to carry back contributions to earlier years.

Table C - Benefits In Kind

Car Benefit Assessment 2008/09

Charge based on a percentage of the initial list price of the car; the percentage depends on the carbon dioxide emission ratings of the car, if it has one. For older cars without a rating, the percentage depends on engine capacity.

For 2008/09 the percentage for a petrol engine is 15% for ratings from 121g/km - 135g/km. The percentage increases by 1% for every complete 5g/km in excess of this (i.e. at 140,145 etc), to a maximum of 35%. Diesel cars have 3% added to this figure, but still have a maximum percentage of 35%.A new lower rate of 10% (13% diesel) is available for cars with a rating up to 120g/km.

Car Fuel Assessment

The benefit is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £16,900 (2007/08: £14,400).

The taxable amount is therefore between £1,690 (10% - min.) and £5,915 (35% - max.).