2001/2002

RATES AND ALLOWANCES 2001-2002

Income Tax
Income
tax allowances		 2001-02
(£)
Personal
allowance		 4 535
Personal
allowance for people aged 65-74		 5 990
Personal
allowance for people aged 75 and over		 6 260
Income
limit for age-related allowances		 17 600
Married
couple’s allowance for people born before 6 April 1935		 5 365
Married
couple’s allowance – aged 75 or more		 5 435
Minimum
amount of married couple’s allowance		 2 070
Children’s
tax credit		 5 200
Blind
person’s allowance		 1 450
Taxable
bands
Starting
rate 10%		 0 – 1 880
Basic rate
22%		 1 881 – 29 400
Higher rate
40%		 Over 29 400

National Insurance
Item  
Lower
Earnings Limit		 £72
Upper
Earnings Limit		 £575
Primary
Threshold		 £87
Secondary
Threshold		 £87
Employee’s
contributions		 10% of £87.01 to £575
Employee’s
Contracted-out Rebate		 1. 6%
Married
Women Reduced Rate		 3.85%
Employer’s
Contribution Rates		 11.9% on earnings above £87
Employers’
contracted-out rebate, salary-related schemes		 3%
Employers’
contracted-out rebate, money-purchase schemes		 0.60%
Class 2
Self employed Contribution		 £2.00
Class 2
Small Earnings Exception		 £3,955 per year
Special
Class 2 rate for share fishermen		 £2.65
Special
Class 2 rate for volunteer development workers		 £3.60
Small
Earnings Exception		 £3,955 per year
Class 3
(voluntary) Contribution		 £6.75
Class 4
Contributions – Upper Profits Limit		 £29,900 per year
Class 4
Contributions – Lower Profits Limit		 £4,535 per year
Class 4
- Contribution Rate		 7%

Capital gains tax annual exempt amount

Individuals
etc		 7 500
Other
trustees		 3 750

Inheritance tax threshold

 242 000

Pension schemes earnings cap

 95 400

Corporation Tax
Starting
rate 10%		 0 – 10 000
Marginal
relief		 10 001 – 50 000
Small
companies’ rate 20%		 50 001 – 300 000
Marginal
relief		 300 001 – 1 500 000
Main rate
30%		 1 500 001 or more

Value Added Tax
Standard rate 17.50%
Annual Registration
limit		 £54,000
De-registration limit £52,000