Tax Summary Tables

You've heard it on the TV ad... "Tax doesn't have to be taxing"! Personal and Corporate tax allowances for the 2008 / 2009 tax year (starting 6th April 2008).

Income Tax

A new 10% starting rate (up to £2,230 limit) for Savings income is introduced from 6th April 2008. Dividend income is taxed at 10% up to the Basic rate maximum, and 32.5% thereafter (Higher rate).

2008 / 2009	Rate %
£0 - £34,800	20
over £34,800	40

Allowance and Reliefs

Personal allowance	2008 / 2009
Up to 65	£6,035
65 to 74*	£9,030

*	Age attained during tax year.

ISA's

Overall maximum subscription to both ISA's is £7,200.

	Maximum contribution 2008 / 2009
Cash ISA	up to £3,600
Stocks and Shares ISA	up to £7,200

Request your FREE brochures on ISA's, saving and investing

Stamp Duty

Purchases of residential property up to £150,000 in designated disadvantaged areas benefit from no Stamp Duty being levied.

Residential Value of Consideration	Non-residential Value of Consideration	Rate %
£0 - £175,000 (Until 2nd Sep 2009 inclusive)	£0 - £150,000	0
£175,001 - £250,000	£150,001 - £250,000	1
£250,001 - £500,000	£250,001 - £500,000	3
£500,001 +	£500,001 +	4

Inheritance Tax (IHT)

Main Exemptions:

• Normal expenditure out of income
• Gifts to Spouses (If Spouse is non-UK domiciled and the transferor is UK-domiciled, the limit is £55,000) *
• Annual allowance of £3,000 per tax year
• Small Gifts to individuals up to £250 per tax year
• Gifts in consideration of marriage: £5,000 by a Parent, £2,500 by a remoter relative or party to the marriage, and £1,000 by any other individual **
• Gifts to UK charities

(The above exemptions may not all be concurrently available)

*	From 5th December 2005, this exemption also applies to Civil Partners.
**	From 5th December 2005, this exemption also applies to Civil Partnerships.

Death rate	Lifetime rate	Chargeable transfers 2008 / 2009
Nil	Nil	£0 - £312,000
40%	20%	Over £312,000

Rates of charge on certain gifts within seven years of death:

Years between gift and death	% of death rate charge
0 - 3	100
3 - 4	80
4 - 5	60
5 - 6	40
6 - 7	20

Capital Gains Tax (CGT)

2008 / 2009 Gains	Rate %
Up to £9,600	Nil
Over £9,600	18*

*	From 6th April 2008, a new Entrepreneur's relief is available. The lifetime total of the first £1million of qualifying gains is taxed at 10%, any excess then taxed at 18%.

Corporation Tax

A company's capital gains are charges at its Corporation tax rate.

Rate	Year to 31.03.2009
Small companies' rate £1 - £300,000*	21%
Marginal rate** (Marginal relief applies £300,001 - £1,500,000)	29.75%
Marginal relief factor	7/400
Main rate - £1,500,001 and over	28%

*	This is the first £300,000 of profits, whether distributed as Dividends or retained.
**	If the company receives UK Dividend payments from other companies, marginal relief will be applied. If not, the marginal rate will be used.