TAX FACTS 2003/2004

Income Tax Rates

Bands, £ (GBP)
Rate,%
Tax on band, £ (GBP)
1-1,960 10 196
1,961-30,500 22 6,278
Over 30,500 40  
 
Dividends receive a 10% tax credit. Higher rate taxpayers pay further tax of 22.5%

Allowances and Reliefs

 
£ (GBP)
Personal allowance
4,615
Married couple's allowance
nil
Additional personal allowance
nil
Children's Tax Credit
nil
Children's Tax Credit - baby rate
nil
Age allowance
Single person
aged 65-74
6,610
aged 75 and over
6,720
Married couple's allowance
aged 65-74
5,565*
aged 75 and over
5,635*
Age allowance reduced by 1/2
of income over
18,300
Blind person's allowance
1,510
Rent a room
4,250
 
*Relief restricted to 10%
**Relief restricted to 10% and reduced for higher rate taxpayers

Corporation Tax

Year to 31 March
Taxable profit
£ (GBP)1-£ (GBP)10,000
0%
£ (GBP)10,001-£ (GBP)50,000*
23,75%
£ (GBP)50,001-£ (GBP)300,000
19%
£ (GBP)300,001-£ (GBP)1,500,000**
32,75%
Over £ (GBP)1,500,001
30%
 
*Marginal relief fraction
19/400
**Marginal relief fraction
11/400

Capital Allowances

 
First year/Initial Allowance
Writing-down Allowance
Plant & Machinery - Long Life
nil
6%
Plant  & Machinery - Energy Saving
100%
nil
Plant & Machinery - other
40%*
25%
Low emission cars
100%
nil
Industrial Buildings
nil
4%
Agricultural Buildings
nil
4%
Enterprise Zone
100%
nil
Scientific Research
100%
nil
 
* Only available for qualifying expenditure incurred by small or medium size businesses. Until 31 March 2004, 100% first year allowances are available for investments by small enterprises on information and communication technology.

Capital Gains Tax

 
£ (GBP)
Annual exemption
- individuals
7,900
- settlements
3,950
Retirement relief (available from age 50)
- exempt gains
0
- 50% reduction of gains up to
0
 
For gains realised after 5 April 1998, indexation allowance is frozen and the gain reduced by a tapering relief according to how the asset has been held after 5 April 1998
Different rates of taper relief apply dependent on whether the disposal is of a business or non business asset.
Number of complete years after 5.04.98 for which asset held Business assets chargeable for disposals in 2003/2004 Business assets equivalent tax rate for higher rate taxpayer Non business assets chargeable for disposals in 2003/2004
  % % %
0 100 40 100
1 50 20 100
2 25 10 100
3 25 10 95
4 25 10 90
5 25 10 85
6 25 10 80
7 25 10 75
8 25 10 70
9 25 10 65
10 or more 25 10 60

Car Scale Benefit

Since 6 April 2002 car benefit is based on a percentage of the car's list price (subject to a ceiling of £ (GBP)80,000) graduated according to the level of the car's COemissions. This applies to cars first registered on or after 1 January 1998. There are different rules for older cars and those with no CO2 figure.
Discounts apply for cars, which run on alternative fuels such as electric, Battery and liquefied petroleum gas. Supplements apply if the car runs solely on diesel.
COemissions g/km % of car price COemissions g/km % of car price
155 15 210 26
160 16 215 27
165 17 220 28
170 18 225 29
175 19 230 30
180 20 235 31
185 21 240 32
190 22 245 33
195 23 250 34
200 24 255 35
205 25    
Business mileage is no longer relevant for car benefits, nor is the age for cars registered from 1 January 1998 onwards.

Car Fuel Benefit

From 6 April 2003 car fuel benefit is based on a percentage of a set figure, which for 2003/04 is £ (GBP)14,400. The same percentage figure as for car scale benefit (detailed above) will be used.

Inland Revenue Mileage Rates

Approved Inland Revenue tax-free mileage rates
Mileage For 2003/2004
Up to 10,000 miles 40p
Over 10,000 miles 25p

Employment Benefits

Applies to most directors and all employees earning at a rate of £ (GBP)8,500 p.a. or more.
Beneficial loans
Official rate of interest for 2003/2004 - 5%.
Use of assets
Benefit is 20% of market value or cost to employer (if greater) plus relevant expenses. Special rules for property.

Individual Savings Accounts

The ISA annual contribution limit of £ (GBP)7,000 lasts until 5 April 2006. There are limits of £ (GBP)3,000 for the cash element and £ (GBP)1,000 for the life assurance element. Savers are exempt from Income and Capital Gains Tax and a 10% tax credit will be paid on dividends from UK equities until 5 April 2004.

Charitable Giving

There is no minimum amount for a Gift Aid donation and all cash donations, of whatever size, made by a UK taxpayer are eligible for Gift Aid relief.

Gift Aid declarations can be made in writing, on the telephone or over the internet and must contain the name and address of the donor, the name of the charity and a statement that the donor pays sufficient income or capital gains tax to cover the tax reclaimed by the charity.

Tax relief for donations made under a deed of covenant is given under Gift Aid rules. From 1 April 2000 company donations to charity are made gross. The company claims tax relief in its computation and the charity receives no additional tax reclaim.

Since 6 April 2003 higher rate taxpayers can carry back their portion of Gift Aid relief (18%) to the previous year. From April 2004, taxpayers will be able to nominate a charity to receive all or part of a tax repayment due to them.

Income and Capital Gains Tax relief applies for gifts to charity of listed shares and securities, AIM shares, units in authorised unit trusts and shares in OEIC's as land and buildings.
Example:
£ (GBP)
Tax relief to individual (40% taxpayer)
Net donation paid
780
Higher rate tax relief on grossed up donation
(18% x £ (GBP)1,000)
(180)
Net cost to individual
600
Charity's position
Net donation
780
Grossed up at 22%
220
Gross receipt
1,000

VAT

From 1.4.2003
Standard Rate
17.5%
Fuel and Power Rate
5%
Installation of energy saving material
5%
VAT on fraction of gross price
7/47
Certain housing refurbishment work
5%
Annual Turnover Limits* (based on previous 12 months)  
Registration
£ (GBP)   56,000
Deregistration
£ (GBP)   54,000
*From 10 April 2003

Inland Revenue Interest Rates

Income Tax/Capital Gains Tax
- late paid tax
6.5%
- over paid tax
2.5%
Corporation tax - periods ended pre 1.7.99
- late paid tax
5%
- over paid tax
2%
Corporation tax - periods ended pre 30.6.99
- late paid tax
6.5%
- over paid tax
3%
Corporation Tax quarterly instalment payments
- under paid instalments
4.75%
- over paid instalments
3.5%
Inheritance Tax
3%
VAT 
- on under declaration
6.5%
- on official errors
3%
These rates are effective from 17 February 2003

National Insurance Contributions

Class 1 Employed. From 6 April 2003
£ (GBP) pw earnings
Contracted in
Contracted out
Contracted out
Employee  
(salary related)
(money purchase)
Up to £ (GBP)89
nil
nil
nil
£ (GBP)89.01 - £ (GBP)595
11%
9.4%
9.4%
over £ (GBP)595
1%
1%
1%
Employer
Earnings bracket
Up to £ (GBP)89
nil
nil
nil
£ (GBP)89.01 - £ (GBP)595
12.8%
9.3%
11.8%
Over £ (GBP)595
12.8%
12.8%
12.8%
 
Class 2 Self-employed:
Weekly rate £ (GBP)2 once earnings over £ (GBP)4,095 p.a.
 
Class 3 Voluntary:
Weekly rate £ (GBP)6.95
 
Class 4 Self-emloyed:
8% on annual profits between £ (GBP)4,615 - £ (GBP)30,940
1% on annual profits above £ (GBP)30,940

Personal Pensions

  Contribution limit - 0% of net relevant earnings
Age on 6 April 2003 PPS RAP*
35 or less 17.5 17.5
36-45 20.0 17.5
46-50 25.0 17.5
51-55 30.0 20.0
56-60 35.0 22.5
61 and over 40.0 27.5
N.R.E. cap for P.P.S. £ (GBP)99,000 (2002/03: £ (GBP)97,200).
*Retirement annuity policy limits apply to policies effected before 1 July 1988.
Stakeholder pensions allow individuals to contribute up to £ (GBP)3,600 per annum irrespective of earnings or age.

Stamp Duty

Transfers of property
Value of property From 28.3.2000
  Rate
£ (GBP) %
1-60,000 nil
60,001-250,000 1
250,001-500,000 3
Over 500,000 4


наверх