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Tax Rates & Allowances 2005-2006

  • Income Tax
  • Pensions & Savings
  • Vehicles
  • Corporation Tax
  • Main Capital Allowances
  • Value Added Tax
  • National Insurance
  • Capital Gains Tax
  • Inheritance Tax
  • Stamp Taxes
  • Selected Rates

INCOME 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 - income over
£32,400
£31,400
  Higher tax rate
40%
40%
 

UK dividend rate
32.5%
32.5%
       
Allowances that reduce Taxable Income
Personal allowances (PA) - under 65
£4,895
£4,745
  - 65 to 74
£7,090
£6,830
  - 75 and over
£7,220
£6,950
The age-related allowances are progressively withdrawn
if income exceeds
£19,500
£18,900
Minimum PA
£4,895
£4,745
Minimum Married Couple's Allowance (MCA) tax reduction
£228
£221

* Ages are at the end of the tax year

    
     
Tax Shelters
Enterprise Investment Scheme up to
£200,000
£200,000
Venture Capital Trust up to
£200,000
£200,000
     
'Rent a Room'
Exempt on gross annual rent
£4,250
£4,250
S    
Construction Industry Scheme
Deduction rate
18%
18%
     

 

PENSIONS & SAVINGS
Pensions
Qualifying contributions of up to £3,600 (before basic rate tax relief at source) may be made to personal pension schemes, including Stakeholder schemes. Contributions above this level may be made, subject to the limits below:
Overall % Limit of Net Relevant Earnings
Age at 6 April 2005
Personal Pensions
Retirement Annuities
35 or under
17.5
17.5
36 - 45
20
17.5
46 - 50
25
17.5
51 - 55
30
20
56 - 60
35
22.5
61 - 74
40
27.5
Subject to maximum earnings of
£105,600
No Limit
     
ISAs:  
Overall investment limit
£7,000
Including cash maximum of
£3,000
 

 
Excel Docklands c 2005