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Taxation Rates and Allowances for
2006-07 (and 2005-06)
|
| CORPORATION TAX
(£ per year unless otherwise stated) |
| Rate |
2005-06 |
2006-07 |
| Starting Rate: 0% |
£0 - £10,000 |
n/a* |
| Marginal Relief |
£10,000 - £50,000 |
n/a* |
| Small Companies Rate: 19% |
£50,001 - £300,000 |
£0 - £30,000 |
| Marginal relief |
£300,001 - £1,500,000 |
£300,001 - £1,500,000 |
| Main Rate: 30% |
£1,500,001 or more |
£1,500,001 or more |
| Non-Corporate Distribution Rate |
19% |
n/a |
|
*The 2005 Pre- Budget
Report announced that the starting rate and non-corporate distribution rate
would be replaced with a single banding for small companies set at the
existing small companies' rate. |
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|
| MINIMUM WAGE |
|
|
| Age |
From 1 October 2005 |
From 1 October 2006 |
| 22 and over |
£5.05 /hr |
£5.35 /hr |
| 18 - 21 |
£4.25 /hr |
£4.45 /hr |
| 16 and 17 |
£3.00 /hr |
£3.30 /hr |
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|
|
| INCOME TAX |
| Income tax allowances |
2005-06 (£) |
2006-07 (£) |
| Personal allowance |
4,895 |
5,035 |
| Personal allowance for people
aged 65-74 |
7,090 |
7,280 |
| Personal allowance for people
aged 75 and over |
7,220 |
7,420 |
| Income limit for age-related
allowances |
19,500 |
20,100 |
| Married couple's allowance for
people born before 6 April 1935 |
5,905 |
6,065 |
| Married couple's allowance - aged
75 or more |
5,975 |
6,135 |
| Minimum amount of married
couple's allowance |
2,280 |
2,350 |
| Blind person's allowance |
1,610 |
1,660 |
|
The rate of relief for
the continuing married couple's allowance and maintenance relief for people
born before 6 April 1935, and for the children's tax credit, is 10%. |
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|
|
| TAXABLE BANDS |
| Taxable Bands Allowances |
2005-06 |
2006-07 |
| Starting rate 10% |
0 - 2,090 |
0 - 2,150 |
| Basic rate 22% |
2,091 - 32,400 |
2,151 - 33,300 |
| Higher rate 40% |
Over 32,400 |
over 33,300 |
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|
|
| NATIONAL INSURANCE
CONTRIBUTIONS |
| £ per week |
2005-06 |
2006-07 |
| Lower earnings limit, primary
Class 1 |
£82 |
£84 |
| Upper earnings limit, primary
Class 1 |
£630 |
£645 |
| Primary threshold |
£94 |
£97 |
| Secondary threshold |
£94 |
£97 |
| Employees’ primary Class 1 rate
between primary threshold and upper earnings limit |
11% |
11% |
| Employees’ primary Class 1 rate
above upper earnings limit |
1% |
1% |
| Employees’ contracted-out rebate |
1.6% |
1.6% |
| Married women's reduced rate
between primary threshold and upper earnings limit |
4.85% |
4.85% |
| Married women’s rate above upper
earnings limit |
1% |
1% |
| Employers’ secondary Class 1 rate
above secondary threshold |
12.8% |
12.8% |
| Employers’ contracted-out rebate,
salary-related schemes |
3.5% |
3.5% |
| Employers’ contracted-out rebate,
money-purchase schemes |
1% |
1% |
| Class 2 rate |
£2.10 |
£2.10 |
| Class 2 small earnings exception |
£4,345 per year |
£4,465 per year |
| Special Class 2 rate for share
fishermen (per week) |
£2.75 |
£2.75 |
| Special Class 2 rate for
volunteer development workers |
£4.10 |
£4.20 |
| Class 3 rate |
£7.35 |
£7.55 |
| Class 4 lower profits limit |
£4,895 |
£5,035 |
| Class 4 upper profits limit |
£32,760 |
£33,540 |
| Class 4 rate between lower
profits limit and upper profits limit |
8% |
8% |
| Class 4 rate above upper profits
limit |
1% |
1% |
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| PENSIONS SCHEMES
EARNINGS CAP |
| Tax Year |
Amount |
|
| 2000-01 |
91,800 |
|
| 2001-02 |
95,400 |
|
| 2002-03 |
97,200 |
|
| 2003-04 |
99,000 |
|
| 2004-05 |
102,000 |
|
| 2005-06 |
105,600 |
|
|
The main effect of the
cap is to set a ceiling on the contributions that can be paid to, and the
benefits that can be paid by, tax approved pension schemes. It generally
applies to people who contribute to a personal pension scheme, joined an
occupational scheme set up since 14 March 1989, or joined any occupational
scheme from 1 June 1989, which was set up before 14 March 1989. From 6 April
2001 the cap will apply to people who contribute to stakeholder pension
schemes. |
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