 |
 |
|
Income
Tax
|
Tax
Bands
|
2004/05
|
2005/06
|
|
Lower
Rate Tax Band
|
£2,020
|
£2,090
|
|
Tax
in Band
|
£202.00
|
£209.00
|
|
Rate
|
10%
|
10%
|
|
Basic
Rate Tax Band
|
£2,021-£31,400
|
£2,091-£32,400
|
|
Tax
in Band
|
£6,463.60
|
£6,668.20
|
|
Rate
|
22%
|
22%
|
|
Higher
Rate Tax Band
|
£31,400+
|
£32,400+
|
|
Tax
in Band
|
unlimited
|
unlimited
|
|
Rate
|
40%
|
40%
|
|
Allowances
& Reliefs
|
2004/05
|
2005/06
|
|
Personal
allowance
|
£4,745.00
|
£4,895.00
|
|
Personal
allowance 65-74
|
£6,830.00
|
£7,090.00
|
|
Personal
allowance 75+
|
£6,950.00
|
£7,220.00
|
|
Married
couple's allowance*
|
|
|
|
...if
older partner aged 65-74*
|
£5,725.00
|
£5,905.00
|
|
...if
older partner aged 75+*
|
£5,795.00
|
£5,975.00
|
|
…minimum
amount
|
£2,210
|
£2,280
|
|
Age
allowance withdrawn
(to personal allowance levels) by £1 for every £2 of income over
|
£18,900.00
|
£19,500.00
|
|
* = Relief given at 10% since 1999/2000.
Inheritance
Tax
|
Bands
|
2004/05
|
2005/06
|
|
Nil
Rate Band
|
£263,000
|
£275,000
|
|
Rate
on excess on death
|
40%
|
40%
|
|
Exemptions
& Gifts
|
2004/05
|
2005/06
|
|
Annual
exemption per donor
|
£3,000
|
£3,000
|
|
Small
gifts to any person
|
£250
|
£250
|
|
Wedding
gifts by parents
|
£5,000
|
£5,000
|
|
Wedding
gifts by grandparents
|
£2,500
|
£2,500
|
|
Wedding
gifts by any other person
|
£1,000
|
£1,000
|
|
If
you die after three years but within seven years of making a gift
and the gift becomes liable to tax, taper relief means the recipient
will not pay the full rate of IHT on the gift.
The
table below shows the rates of tax payable.
Years
between
% of death rate
gift
& death
tax payable
|
|
|
0-3
100
|
|
3-4
80
|
|
4-5
60
|
|
5-6
40
|
|
6-7
20
|
|
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