Tax allowances for 2008-2009

In case you are wondering what your tax allowances will be for the next tax year, we have compiled some easy-to-read tables for you. These should provide all the information you need.

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Isas

 

Until
April 5 2008

From
April 6 2008

 Change

Annual allowance

£7,000

£7,200

+ £200

Cash element

£3,000

£3,600

+ £600

Inheritance Tax

 

2007-2008

2008-2009

Change

Personal allowance

£300,000

£312,000

+ £12,000

Couples allowance

£600,000

£625,000

+ £25,000

Capital Gains Tax - Personal Allowance

 

2007-2008

2008-2009

 Gains above
annual exemption*

Individuals

£9,200

£9,600

18%

* From April 6 2008. New entrepreneurs' relief will reduce the effective tax rate on some gains to 10 per cent.

Pension Scheme - Personal Allowance

 

2007-2008

2008-2009

 Change

Annual allowance

£225,000

£235,000

+ £10,000

Lifetime allowance

£1,600,000

£1,650,000

+ £50,000

Income Tax – Personal Allowances

 

2007-2008

2008-2009

 Change

Up to 64 Years

£5,225

£5,435

+ £210

65 - 74 Years*

£7,550

£9,030

+ £1,480

Over 75 Years*

£7,690

£9,180 

+ £1,490

Married couples allowance* ^
(aged less than 75 and born before 6th April 1935)

£6,285

£6,535

+ £250

 Married couples allowance* ^ (aged 75 and over)

£6,365

£6,625

+ £260

Married couples allowance^ (minimum amount)

£2,440

£2,540

+ £100

 Income limit for age-related allowances

£20,900

£21,800 

+ £900

* These allowances may be lower depending on your income. For more information on how age-related allowances work visit http://www.hmrc.gov.uk/pensioners/allowances.htm

^ Married couple's allowance is given at the rate of 10%. It applies to couples where at least one spouse was born before April 6 1935.

Income: Taxable bands*

 

2007-2008

2008-2009

Starting Rate 10%

£0 - £2,230

-

Basic Rate 20%**

£2,231 - £34,600

£0 - £36,000

 Higher Rate 40%

£34,600 and Over

£36,000 and Over

* Tax is levied on income above your personal allowance. ** From April 6 2008. Currently 22%.

Stamp Duty

Rate

Residential in
disadvantaged
areas*

Residential outside
disadvantaged
areas*

Non-residential

 

Total value of consideration

Zero

£0 - £150,000

£0 - £125,000

£0 - £150,000

1%

Over £150,000 -
£250,000

Over £125,000 -
£250,000

Over £150,000 -
£250,000

3%

Over £250,000 -
£500,000

Over £250,000 -
£500,000

Over £250,000 -
£500,000

 4%

Over £500,000

Over £500,000

Over £500,000

* To find out whether the area you are looking to buy in is classed as disadvantaged, visit http://www.hmrc.gov.uk/so/dar/dar-search.htm

Source: HMRC

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