2002/2003

RATES AND ALLOWANCES
2002-2003

Income Tax
Income
tax allowances		 2002-03
(£)
Personal
allowance		 4
615
Personal
allowance for people aged 65-74		 6
100
Personal
allowance for people aged 75 and over		 6
370
Income limit
for age-related allowances		 17
900
Married
couple’s allowance for people born before 6 April 1935		 5
465
Married
couple’s allowance – aged 75 or more		 5
535
Minimum
amount of married couple’s allowance		 2
110
Children’s
tax credit		 5
290
Children’s
tax credit – baby rate		 10
490
Blind
person’s allowance		 1
480
Taxable
bands
Starting
rate 10%		 0
- 1 920
Basic rate
22%		 1
921 – 29 900
Higher rate
40%		 Over
29 900

National Insurance
Item  
Lower
Earnings Limit		 £75
per week
Upper
Earnings Limit		 £585
per week
Primary
Threshold		 £89
per week
Secondary
Threshold		 £89
per week
Employee’s
contributions		 10%
of £89.01 to £585
Employee’s
Contracted-out Rebate		 1.
6%
Married
Women Reduced Rate		 3.85%
Employer’s
Contribution Rates		 11.8%
on earnings above £89
Employers’
contracted-out rebate, salary-related schemes		 3.5%
Employers’
contracted-out rebate, money-purchase schemes		 1.00%
Class 2
Self employed Contribution		 £2.00
Class 2
Small Earnings Exception		 £4,025
per year
Special
Class 2 rate for share fishermen		 £2.65
Special
Class 2 rate for volunteer development workers		 £3.75
Small
Earnings Exception		 £4,025
per year
Class 3
(voluntary) Contribution		 £6.85
Class 4
Contributions – Upper Profits Limit		 £30,420
per year
Class 4
Contributions – Lower Profits Limit		 £4,615
per year
Class 4
- Contribution Rate		 7%

Capital gains tax annual
exempt amount

Individuals
etc		 7
700
Other
trustees		 3
850

Inheritance tax
threshold

 250
000

Pension schemes earnings
cap

 97
200

Corporation Tax
Starting
rate 0%		 0
- 10 000
Marginal
relief		 10
001 – 50 000
Small
companies’ rate 19%		 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		 £55,000
De-registration
limit		 £53,000