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Income Tax 2005/06
Tax rates |
2005/06 |
2004/05 |
Starting rate band to |
£2,090 |
£2,020 |
Tax rate |
10% |
10% |
Basic rate band - next |
£30,310 |
£29,380 |
Non-savings rate |
22% |
22% |
Savings rate |
20% |
20% |
UK dividend rate |
10% |
10% |
Higher rate - taxable income over |
£32,400 |
£31,400 |
Higher tax rate |
40% |
40% |
UK dividend rate |
32.5% |
32.5% |
Trusts |
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Tax rate |
40% |
40% |
UK dividend rate |
32.5% |
32.5% |
Allowances that reduce taxable income |
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Personal allowance (PA) |
under 65 |
£4,895 |
£4,745 |
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65 to 74 |
£7,090 |
£6,830 |
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75 and over |
£7,220 |
£6,950 |
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Blind person's allowance |
£1,610 |
£1,560 |
Allowances that reduce tax |
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Married couple's allowance (MCA) |
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Tax reduction |
71 to 74 |
£590.50 |
£572.50 |
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75 and over |
£597.50 |
£579.50 |
The age-related allowances are progressively withdrawn if income exceeds |
£19,500 |
£18,900 |
Minimum PA |
£4,895 |
£4,745 |
Minimum MCA tax reduction |
£228 |
£221 |
Tax Shelters |
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Enterprise Investment Scheme (EIS) up to |
£200,000 |
£200,000 |
Venture Capital Trust (VCT) up to |
£200,000 |
£200,000 |
Golden Handshake max. |
£30,000 |
£30,000 |
Rent a Room - exempt on gross annual rent up to |
£4,250 |
£4,250 |
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Contact Us |
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Suite 4, Earls House, Earlsway,
Team Valley, Gateshead, NE11 0RY |
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