Tax Rates 2004/2005

• Income tax allowances and tax rates
• Pension contribution limits
• National insurance contributions
• Cars and fuel taxable benefits and relief's
• Capital gains tax rates, relief's and exemptions
• Inheritance tax rates and exemptions
• Corporation tax rates
• VAT rates and thresholds
• Stamp duty rates for property and shares

Income Tax 

Personal allowances

*Only available where one spouse was born before 6 April 1935

All age allowances are reduced by £1 for every £2 of income over £18,300. 

Tax rates

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Pensions

Stakeholder

An individual can contribute up to £3,600 gross per year into a stakeholder pension. Higher contributions can be paid but they are restricted within the contribution limits which apply to personal pensions.

Contribution limits:

 No relief is given for contributions to personal pension or stakeholder schemes on earnings exceeding £99,000

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National Insurance

Class 1: Employed earners

Employees:

*Contributions are treated as paid

Employers:

Class 1A: Employers on benefits in kind:  12.8%

Class 1B: Employers on PAYE Settlement Agreements:  12.8%

Class 2: Self-employed flat rate:  £2.05p per week with exemption if profits are less than £4,095 per year.

Class 3: Voluntary:  £7.15 per week

Class 4: Self employed:

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Cars and Fuel

Car benefit

*The percentage of list price is reduced by a further 1% for each full 20 gr/km CO₂ the emissions figure is less than 165.

Fuel benefit

For 2004-2005 the fuel scale charge will be replaced by a new fuel benefit charge which is based on the level of CO2 emissions coming out of the car. The benefit will equal the appropriate percentage of CO2 of a set figure, which in 2004-2005 is £14,400.

Vans

A van is a vehicle designed to carry goods, which weighs less than 3,500 kg.

Tax free mileage rates - own vehicle:

Tax free fuel only rates - company car:

In addition employers may pay a tax free allowance of up to 5p per mile per passenger to employees who carry fellow employees on business trips in their own or company cars or vans.

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Capital Gains Tax

Taper relief

*Non-business assets are treated as having been held for an extra year if they were held on 17 March 1998.

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Inheritance Tax

Taxable Estate and gifts in 7 years before death:

Main exemptions:

Charge on gifts within 7 years of death:

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Corporation Tax

All thresholds are reduced by the number of associated companies. 

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VAT

Rates:

Turnover Thresholds:

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Stamp Duty

Land and property:

*Exemption available for property costing up to £150,000 situated in designated disadvantaged areas

Stocks and marketable securities: 0.5%

NOTE: THIS SUMMARY IS PUBLISHED AS A GUIDE TO CLIENTS FOR INFORMATION PURPOSES ONLY. IT PROVIDES ONLY AN OVERVIEW OF THE 2005/06 BUDGET. PLEASE CONTACT YOUR ACCOUNT MANAGER BEFORE TAKING OR REFRAINING FROM ANY ACTION. ANDREW WEBSTER LIMITED WILL ACCEPT NO RESPONSIBILITY FOR ANY ACTIONS TAKEN OR REFRAINED FROM BASED ON THE INFORMATION PROVIDED ON THIS PAGE.

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