RATES AND ALLOWANCES
2005-2006

Income Tax

Income
tax allowances

2005-06
(£)

Personal
allowance

4,895

Personal
allowance for people aged 65-74

7,090

Personal
allowance for people aged 75 and over

7,220

Income limit
for age-related allowances

19,500

Married
couple’s allowance for people born before 6 April 1935

5,905

Married
couple’s allowance – aged 75 or more

5,975

Minimum
amount of married couple’s allowance

2,280

Blind
person’s allowance

1,610

Taxable
bands

Starting
rate 10%

0
- 2,090

Basic rate
22%

2,091 -
32,400

Higher rate
40%

Over
32,400

National Insurance

Item

Lower
Earnings Limit

£82
per week

Upper
Earnings Limit

£630
per week

Primary
Threshold

£94
per week

Secondary
Threshold

£94
per week

Employee’s
contributions

11%
of £94.01 to £630 per week  1% above £630 per week

Employee’s
Contracted-out Rebate

1.
6%

Married
Women Reduced Rate

4.85%
of £94.01 to £630 per week  1% above £630 per week

Employer’s
Contribution Rates

12.8%
on earnings above £91 per week

Employers’
contracted-out rebate, salary-related schemes

3.50%

Employers’
contracted-out rebate, money-purchase schemes

1.00%

Class 2
Self employed Contribution

£2.10

Class 2
Small Earnings Exception

£4,345
per year

Special
Class 2 rate for share fishermen

£2.75

Special
Class 2 rate for volunteer development workers

£4.10

Class 3
(voluntary) Contribution

£7.35

Class 4
- Contribution Rate

8%
of £4,895 to £32,760 per year 1% above £32,760 per year

Class 4
Contributions – Lower Profits Limit

£4,895
per year

Class 4
Contributions – Upper Profits Limit

£32,760
per year

Capital gains tax annual
exempt amount

Individuals
etc

8,600

Other
trustees

4,250

Inheritance tax
threshold

275,000

Pension schemes earnings
cap

105,600

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

Approved Mileage Rates

Cars
and Vans – First 10000 business miles in the tax year

40p

Cars and
Vans – Each mile over 10000 business miles in the tax year

25p

Motorcycles
- First 10000 business miles in the tax year

24p

Motorcycles
- Each mile over 10000 business miles in the tax year

24p

Bicycles
- First 10000 business miles in the tax year

20p

Bicycles -
Each mile over 10000 business miles in the tax year

 20p

Value Added Tax

Standard
rate

17.50%

Annual
Registration limit

£60,000

De-registration
limit

£58,000

Key Assessment Dates

31 July 2005

30 September 2005

31 January
2006