Income Tax 2007/08 
Tax rates |
2007/08 |
2006/07 |
Starting rate band 10% |
0 - 2,230 |
0 - 2,150 |
Basic rate band |
2231 - 31,1500 |
2151 - 31,1500 |
Non-savings rate |
22% |
22% |
Savings rate |
20% |
20% |
UK dividend rate |
10% |
10% |
Higher rate over |
£34,600 |
£33,300 |
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 |
£5,225 |
£5,035 |
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65 to 74 |
£7,550 |
£7,280 |
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75 and over |
£7,690 |
£7,420 |
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Blind person's allowance |
£1,730 |
£1,660 |
Allowances that reduce tax |
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Married couple's allowance (MCA) |
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Tax reduction |
71 to 74 |
£628.50 |
£606.50 |
|
75 and over |
£636.50 |
£613.50 |
The age-related allowances are progressively withdrawn if income exceeds |
£20,900 |
£20,100 |
Minimum PA |
£5,225 |
£5,035 |
Minimum MCA tax reduction |
£244 |
£235 |
Tax Shelters |
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Enterprise Investment Scheme (EIS) up to |
£400,000 |
£400,000 |
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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