Rates and allowances set for various types of tax are set out below.
Income tax, capital gains tax, and inheritance tax
| £ per year (unless stated) | 2007-08 (£) | 2008-09 (£) | |
| Income tax personal and age-related allowances | |||
| Personal allowance (age under 65) | 5,225 | 5,435 | |
| Personal allowance (age 65-74) | 7,550 | 9,030 | |
| Personal allowance (age 75 and over) | 7,690 | 9,180 | |
| Married couple's allowance* (aged less than 75 and born before 6th April 1935) | 6,285 | 6,535 | |
| Married couple's allowance* (age 75 and over) | 6,365 | 6,625 | |
| Married couple's allowance* - minimum amount | 2,440 | 2,540 | |
| Income limit for age-related allowances | 20,900 | 21,800 | |
| Blind person’s allowance | 1,730 | 1,800 | |
| Capital gains tax annual exempt amount | |||
| Individuals etc. | 9,200 | 9,600 | |
| Most trustees | 4,600 | 4,800 | |
| Individual inheritance tax allowance | 300,000 | 312,000 | |
| Pension schemes allowances | |||
| Annual Allowance | 225,000 | 235,000 | |
| Lifetime Allowance | 1,600,000 | 1,650,000 | |
* Married couple's allowance is given as a 10% tax credit.
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 36,000 |
* Savings Income only: If your savings income is less than £2,320 in the year, you are taxed at 10%. ** Dividend Income: Dividends are still taxed at 10% unless you are a higher rate taxpayer when you pay 32.5% on the higher rate element.
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 | 2008-09 |
| Lower earnings limit, primary Class 1 | £87 | £90 |
| Upper earnings limit, primary Class 1 | £670 | £770 |
| Primary threshold | £100 | £105 |
| Secondary threshold | £100 | £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 | £2.30 |
| Class 2 small earnings exception (per year) | £4,635 | £4,825 |
| Special Class 2 rate for share fishermen | £2.85 | £2.95 |
| Special Class 2 rate for volunteer development workers | £4.35 | £4.50 |
| Class 3 rate (per week) | £7.80 | £8.10 |
| Class 4 lower profits limit (per year) | +£5,225 | £5,435 |
| Class 4 upper profits limit (per year) | £34,840 | £40,040 |
| Class 4 rate between lower profits limit and upper profits limit | 8% | 8% |
| Class 4 rate above upper profits limit | 1% | 1% |
Working and child tax credits rates
| £ per year (unless stated) | 2007-08 | 2008-09 | |
| Working Tax Credit | |||
| Basic element | £1,730 | £1,800 | |
| Couple and lone parent element | £1,700 | £1,770 | |
| 30 hour element | £705 | £735 | |
| Disabled worker element | £2,310 | £2,405 | |
| Severe disability element | £980 | £1,020 | |
| 50+ Return to work payment (16-29 hours) | £1,185 | £1,235 | |
| 50+ Return to work payment (30+ hours) | £1,770 | £1,840 | |
| Childcare element of the Working Tax Credit | |||
| Maximum eligible cost for one child | £175 per week | £175 per week | |
| Maximum eligible cost for two or more children | £300 per week | £300 per week | |
| Percentage of eligible costs covered | 80% | 80% | |
| Child Tax Credit | |||
| Family element | £545 | £545 | |
| Family element, baby addition | £545 | £545 | |
| Child element | £1,845 | £2,085 | |
| Disabled child element | £2,440 | £2,540 | |
| Severely disabled child element | £980 | £1,020 | |
| Income thresholds and withdrawal rates | |||
| First income threshold | £5,220 | £6,420 | |
| First withdrawal rate | 37% | 39% | |
| Second income threshold | £50,000 | £50,000 | |
| Second withdrawal rate | 6.67% | 6.67% | |
| First threshold for those entitled to Child Tax Credit only | £14,495 | £15,575 | |
| Income disregard | £25,000 | £25,000 | |
Child benefit and guardian’s allowance rates from 6 April 2008
| £ per week | 2007-08 (£) | 2008-09 (£) |
| Eldest/Only Child | 18.10 | 18.80 |
| Other Children | 12.10 | 12.55 |
| Guardian’s Allowance | 12.95 | 13.45 |
Rates and Allowances 2007-2008
To view last years rates and allowances tables click here
Published with the consent of HMSO - Inland Revenue copyright is acknowledged
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