Tax Rates and Allowances 2008 / 2009
(Source: Inland Revenue)
| 2007-08 (£) | 2008-09 (£) | Increase (£) | |
| Income tax allowances | |||
| Personal allowance | 5,225 | 5,435 | 210 |
| Capital gains tax annual exempt amount: | |||
| Individuals etc: | 9,200 | ||
| Other trustees: | 4,600 | ||
| Inheritance tax threshold | 300,000 | ||
| Pension schemes earnings cap |
Taxable Bands
| Taxable bands 2007-08 (£) | Taxable bands 2008-09 (£) | ||
| 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 |
Corporation Tax Rates
| Corporation tax profits 2007-08 (£) | Corporation tax profits 2008-09 (£) | ||
| Small companies' rate 20% | 0 - 300,000 | Small companies' rate 20% | |
| Marginal relief | 300,001 - 1,500,000 | Marginal relief | |
| Main rate 30% | 1,500,001 or more | Main rate 30% | |
National Insurance Rates
| 2007-08 | 2008-09 | ||
| Primary threshold | £100 per week | £105 per week | |
| Secondary threshold | £100 per week | £105 per week | |
| Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit | 11% |
11% |
|
| Employers’ secondary Class 1 rate |
12.8% |
12.8% | |
| Class 4 rate |
8% of £5,225 to £34,840 per year 1% above £34,840 per year |
8% of £5,435 to £40,040 per year 1% above £40,040 per year |
|
| Class 4 lower profits limit |
£5,225 per year | £5,435 per year | |
| Class 4 upper profits limit |
£34,840 per year | £40,040 per year |
For a complete list of rates and allowances for 2008-9, visit the Inland Revenue site.
