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Tax
Rates
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INCOME TAX RATES
|
|
2003/04
|
2002/03
|
Band
£ |
Rate
% |
Band
£ |
Rate
% |
| 0
- 1,960 |
10 |
0
- 1,920 |
10 |
| 1,961
- 30,500 |
22
* |
1,921
- 29,900 |
22
* |
| Over
30,500 |
40
** |
Over
29,900 |
40
** |
* Except dividends (10%) and savings income
(20%).
** Except dividends (32.5%).
Other income taxed first, then savings income
and finally dividends.
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INCOME TAX RELIEFS
|
| |
|
2003/04
£ |
2002/03
£ |
| Personal
allowance |
-
under 65 |
4,615
|
4,615
|
| |
-
65 - 74 *** |
6,610
|
6,100
|
| |
75
and over *** |
6,720
|
6,370
|
| 1
Married couple's allowance |
-
aged less than 75 and born before 6.4.35 *** |
5,565
|
5,465
|
| |
-
75 and over |
5,635
|
5,535
|
| |
-
min. amount |
2,150
|
2,110
|
| ***
Age
allowance income limit |
|
18,300
|
17,900
|
| Blind
person’s allowance |
|
1,510
|
1,480
|
| 3
Children’s tax credit |
|
Abolished
|
5,290
|
Notes
1 Qualifies for relief at 10%.
2 Qualifies for relief at 10%. For 2002/03 credit
is increased to a maximum of £10,490 if
a child is born in the tax year. Credit gradually
withdrawn for higher rate taxpayers. For 2003/04,
it has been replaced by Child Tax Credit, a
means tested benefit paid to the main carer.
***Reduce age allowance by £1 for every
£2 of excess income over £18,300.
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PENSION PREMIUMS
|
| |
%
of Net Relevant Earnings (NRE)
2003/04& 2002/03 |
| Age
at the beginning of the tax year |
*
Personal Pensions
(including stakeholder) |
Retirement
Annuities |
35
or less
36 - 45
46 - 50
51 - 55
56 - 60
61 - 74
|
17.5
20
25
30
35
40
|
17.5
17.5
17.5
20
22.5
27.5
|
Notes
*Maximum contributions 2003/04 and 2002/03: higher
of
- £3,600 (gross)
- % of NRE capped at £99,000 in 2003/04
(2002/03 £97,200)
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CAR AND FUEL BENEFITS
|
Company
cars - 2003/04
|
Percentage
of car's list price taxed |
CO2
emissions in grams per kilometre |
-
For
diesel cars add a 3% supplement, but maximum
still 35%.
-
If
the CO2 figure doesn’t end in a 5 or
0 round down to the nearest 5 or 0.
-
Discounts
apply to certain environmentally friendly cars.
-
For
cars registered before 1.1.98 charge is based
on engine size.
|
15% |
Up
to 155
(165 in 2002/03) |
Additional
1% |
for
every additional 5 |
Up
to 35% (max) |
255
and above
(265 in 2002/03) |
Notes
1. The list price includes accessories and is subject
to an upper limit of £80,000.
2. List price is reduced for capital contributions made
by the employee up to £5,000.
3. Payments made by employees may reduce the benefits. |
|
Van
benefit 2003/04 and 2002/03 |
| Per
Vehicle |
Vehicles
under
4 years old
£500 |
Vehicles
at least
4 years old
£350 |
Notes
1. The age is determined at the end of the
tax year.
2. Van benefits include fuel for private use.
|
| Car
fuel scale charge |
Up
to 1400cc
£ |
1401
- 2000cc
£
|
Over
2000cc
£
|
| 2003/04 |
:
£14,400 x ‘appropriate percentage’*
*percentage
used to calculate the taxable benefit of the
car for which the fuel is provided. The charge
is proportionately reduced if provision of private
fuel ceases part way through the year.
|
| |
| 2002/03 |
petrol/LPG |
2,240
|
2,850
|
4,200
|
| |
-
diesel |
2,850
|
2,850 |
4,200
|
| The
fuel scale charge is reduced to nil only if the
employee pays for all private fuel. |
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MILEAGE ALLOWANCE RATES
|
| Cars
and vans |
2003/04
and 2002/03
Rate per mile
|
These
rates represent the maximum tax-free mileage
allowances for employees using their own vehicles
for business. Any excess is taxable. If the
employee receives less than the statutory rate,
tax relief can be claimed on the difference.
|
| Up
to 10,000 miles |
40p |
| Over
10,000 miles |
25p
|
| Bicycles |
20p
|
| Motorcycles |
24p |
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INDIVIDUAL SAVINGS ACCOUNTS (ISAs)
|
|
Max.
investment per year 2003/04 and 2002/03
|
| Maxi
ISA |
£ |
|
Mini
ISA |
£ |
| Overall
investment limit |
7,000
|
|
Overall
investmant limit |
7,000
|
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CORPORATION TAX
|
|
Profits Band
£ |
Years
to 31.3.04 and 31.3.03 |
| Starting
rate |
0
- 10,000 |
0 |
|
Marginal
(starting) rate |
10,001
- 50,000 |
23.75 |
| Small
companies rate |
50,001
- 300,000 |
19 |
| Marginal
(small companies) rate |
300,001
- 1,500,000 |
32.75 |
| Full
rate |
Over
1,500,000 |
30 |
| Starting
rate fraction |
|
19/400
|
| Small
companies fraction |
|
11/400
|
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CAPITAL ALLOWANCES
|
|
Writing
Down Allowance |
| Plant
and Machinery* |
25%#(reducing
balance) |
| Motor
Cars** |
25%
(reducing balance) - £3,000 max |
| Industrial
Buildings |
4%
(straight line) |
| Agricultural
Buildings |
4%
(straight line) |
| Hotels |
4%
(straight line) |
*For small and medium businesses: first year allowances
(FYAs) on expenditure incurred from 2.7.98 of
40%. 100% FYAs on expenditure incurred between
12.5.98 and 11.5.02 on plant and machinery for
use primarily in Northern Ireland.
For small businesses: 100% FYAs on expenditure
incurred between 1.4.00 and 31.3.04 on computers,
software and internet-enabled mobile phones.
For all businesses: 100% FYAs on expenditure on
energy saving plant and machinery from 1.4.01.
**100% FYAs on new cars with CO2 emissions not
exceeding 120 gm/km from 17.4.02.
# 6% on certain long life assets |
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VALUE ADDED TAX
|
| Standard
Rate |
17.5% |
| Lower
Rate |
5% |
| Annual
Registration Limit - from 25 April 2003 |
£56,000 |
| Annual
Registration Limit - from 25 April 2002 - 9 April
2003 |
£55,000 |
VAT
on private fuel - scale charge due per quarter
per car for accounting periods beginning on or
after 1 May 2003.
|
|
|
Petrol |
Diesel |
|
Charge
£ |
VAT
£ |
Charge
£ |
VAT
£ |
| Up
to 1400cc |
237.00
|
35.29
|
225.00
|
33.51
|
| 1401
- 2000cc |
300.00
|
44.68
|
225.00
|
33.51
|
|
Over
2000cc |
442.00
|
65.82
|
283.00
|
42.14
|
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CAPITAL GAINS TAX
|
| |
|
2003/04
|
2002/03
|
| Individuals |
-
exemption |
£7,900
|
£7,700
|
| |
-
balance where gains* plus taxable income |
|
|
| |
£0
- £1,920 (£1,880) |
10% |
10% |
| |
£1,921
(£1,881) - £29,900 (£29,400) |
20% |
20% |
| |
excess
over £29,900 (£29,400) |
40% |
40% |
| |
|
|
|
| Trusts |
-
exemption |
£3,850 |
£3,750 |
| |
-
balance of gains* |
34% |
34% |
| *Reduced
by taper relief for certain assets. |
| |
|
|
|
| Retirement
relief (from age 50) exempt, first |
£50,000 |
£100,000 |
| -
additional relief of 50% on the next |
£150,000 |
£300,000 |
| |
| Taper
relief 2003/04 & 2002/03 disposals* |
| Years
of ownership |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
| Bussiness
assets(% relief) |
50 |
75 |
75 |
75 |
75 |
75 |
75 |
75 |
75 |
75 |
| Non-business
assets*(% relief) |
0 |
0 |
5 |
10 |
15 |
20 |
25 |
30 |
35 |
40 |
*Add one extra year if asset owned before 17.3.98.
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INHERITANCE TAX
|
|
|
Chargeable
Transfers |
Death
Rate
% |
Lifetime
Rate
% |
2003/04
£’000 |
2002/03
£’000 |
|
Nil |
Nil |
0
- 255
|
0
- 250
|
|
40 |
20 |
Over
255
|
Over
250
|
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|
|
|
|
| Reliefs |
| Annual
exemption |
£3,000 |
| Small
gifts |
£250 |
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STAMP DUTY
|
| Shares
and securities |
0.5% |
Disadvantaged
areas |
| Other
property |
Residential
property: |
| Up
to £60,000* |
Nil |
exemption
up to |
£150,000
from 30.11.01 |
| £60,001
- £250,000 |
1% |
|
|
| £250,001
- £500,000 |
3% |
Commercial
property: |
| Over
£500,000 |
4% |
exemption
up to |
£150,000
from 30.11.01 to 9.4.03 |
| |
|
exemption
without limit |
from
10.4.03 |
From
1.12.03 Stamp duty abolished on property
other than land, shares and interests in partnerships.
*Nil rate upper threshold on commercial property
increased to £150,000.
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NATIONAL INSURANCE
|
Class
1 (employed)
(contracted in) |
2003/04
Rates |
| Weekly
earnings |
Employer |
Employee |
| Up
to £89 |
Nil* |
Nil* |
|
£89.01
- £585 |
12.8%**
|
11%**
|
| Over
£585 |
12.8%**
|
£55.66
+1%***
|
*Entitlement
to contribution-based benefits retained for earnings
between £75.01 and £89 per week.
**On earnings above £89
***On earnings above £595. |
|
| Class
1A (employers) |
12.8%
on employee taxable benefits |
| Class
1B (employers) |
12.8%
on PAYE Settlement Agreements |
| Class
2 (self-employed) |
flat
rate per week £2.00 small earnings exception
p.a. £4,095 |
| Class
3 (voluntary) |
flat
rate per week £6.95 |
| Class
4 (self-employed) |
8%
on profits £4,615 - £30,940 plus 1%
on profits over £30,940 |
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MAIN SOCIAL SECURITY BENEFITS
|
|
|
Weekly
Benefit |
|
|
2003/04
|
2002/03
|
| Basic
retirement pension |
-
single person |
£77.45
|
£75.50
|
|
-
married couple |
£123.80
|
£120.70
|
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|
|
| Statutory
Sick Pay (SSP) |
|
|
|
| Average
weekly earnings £77 (£75) or over: |
|
£64.35
|
£63.25
|
|
|
|
|
| Statutory
Maternity Pay (SMP) |
|
|
|
| Average
weekly earnings £77 (£75) or over: |
|
|
|
| First
six weeks |
|
90%
of weekly earnings |
| Next
20 (12) weeks |
|
£100*
|
£75
|
| *Or
90% of weekly earnings if lower |
| |
| **Statutory
Paternity Pay (SPP) 2003/04 only |
| Two
weeks |
the
lower of 90% of weekly earnings or £100
|
| |
| **Statutory
Adoption Pay (SAP) 2003/04 only |
| 26
weeks: |
the
lower of 90% of weekly earnings or £100 |
**Average weekly earnings £77 or over
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contents
Please contact us for advice or to discuss any action you may need to take.
The
information on these tax rates is based upon the 2003 Budget
and other earlier announcements and may be subject to amendment
by the Finance Act..
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