 |
 |
 |
 |
 |
Tax Rates 2000 / 01
|
|
2000/01 |
1999/2000 |
|
|
Personal allowance |
£4,385 |
£4,335 |
|
|
Married couple's, single parent, maintenance payments* |
- |
1,970 |
|
|
Widow* |
++2000 |
1,970 |
|
| Personal age allowance | |||
| Age 65 - 74 | 5,790 | 5,720 | |
| Age 75 or over | 6,050 | 5,980 | |
| Married couple's age allowance | |||
| Age 65 - 74 (older partner) * | **5,185 | 5,125 | |
| Age 75 over (older partner) * | **5,255 | 5,195 | |
| Age allowance income limit | 17,000 | 16,800 | |
| Blind person's allowance | 1,400 | 1,380 |
|
Important limits |
2000/01 |
1999/2000 |
|
|
Limit of ban for MIRAS * |
Nl |
£30,000 |
|
|
Charitable giving through payroll |
Unlimited |
1,200 |
|
|
Individual Savings Account annual limit |
7,000 |
7,000 |
|
| Gift aid | No limit | 250 | |
| Rent a room exemption | 4,250 | 4,250 | |
| Enterprise Investment Scheme annual limit + | 150,000 | 150,000 | |
| Venture Capital Trust annual limit + | 100,000 | 100,000 | |
| *
Relief restricted to 10% ** Only available for 2000/01 if aged 65 or over on 6.4.00 |
|||
| +
Relief restricted to 20% ++Only available if husband died during 1999/00. |
|||
| 2000/01 | 1999/2000 | |||||
| Lower rate on first | £1,520 | £1,500 | ||||
| Basic rate on next | 26,880 | 26,500 | ||||
| Higher rate at taxable income over | 28,400 | 28,000 | ||||
| Rate differs for Dividends/Interest/Other | D | I | O | D | I | O |
| Lower rate | 10% | 10% | 10% | 10% | 10% | 10% |
| Basic rate | 10% | 20% | 22% | 10% | 20% | 23% |
| Higher rate | 32.5% | 40% | 40% | 32.5% | 40% | 40% |
| Dividends taxed as highest part of income, then interest | ||||||
| Discretionary trust rate (25% on dividends) | 34% | 34% | ||||
| Year to 31.3.2001 | Year to 31.3.2000 | |
| Main rate | 30% | 30% |
| Profits above | £1.5m | £1.5m |
| Small companies rate | 20% | 20% |
| Profits between | £50K - £300K | £0 - £300K |
| Small companies limit | 10% | - |
| Small companies Marginal band | £10K | - |
| Marginal bands: | ||
| - small/large | £300K - £1.5m | £300K - £1.5m |
| - effective rate | 32.5% | 32.5% |
| - starting/small | £10K - £50K | - |
| - effective rate | 22.5% | - |
| Fraction | 1/40 | 1/40 |
|
|
Allowance % |
|
Plant and machinery |
|
|
- first year allowance for small businesses |
*40 |
|
- writing down allowance (6% on some long life assets) |
25 |
|
- computers for small businesses |
**100 |
|
- cars (max £3,000pa) |
25 |
|
Industrial buildings writing down allowance |
4 |
|
* 100% if assets to be used in Northern Ireland. |
|
|
** For three years from 1.4.2000. |
|
Car benefit assessment 2000/01
Charge based on a percentage of the initial list price of the car, including accessories, delivery charges and VAT. The percentage depends on the age of the car on 5 April 2001 and the business mileage from 6 April 2000 to 5 April 2001.
| Under 4 years | Over 4 years | ||||
| 0 - 2,499 business miles | 35% | 26.25% | |||
| 2,500 -17,999 business miles | 25% | 18.75% | |||
| 18,000 or more business miles | 15% | 11.25% | |||
Special rules apply to cars over 15 years old at 5.4.2001 with a market value over £15,000.
Company vans
are charged at £500 (£350 where 4 years or older). Employee
contributions for private use are deducted from the taxable figure.
Car fuel benefit
| Petrol | Diesel | ||||
| 2000/01(1999/00) | 2000/01(1999/00) | ||||
| Up to 1,400cc | £1,700 (£1,210) | £2,170 (£1,540) | |||
| 1401 - 2,000cc | £2,170 (£1,540) | £2,170 (£1,540) | |||
| Over 2,000cc | £3,200 (£2,270) | £3,200 (£2,270) | |||
Tax free mileage allowances
| Up to 4,000 miles | Over 4,000 miles | ||||
| (unchanged 1997/98 - 2000/01) | |||||
| Cars up to 1000cc | 28p | 17p | |||
| Cars 1001-1500cc | 35p | 20p | |||
| Cars 1501-2000cc | 45p | 25p | |||
| Cars over 2000cc | 63p | 36p | |||
| Motorcycles | 24p | 24p | |||
| Bicycles | 12p | 12p | |||
| Standard rate (7/47 of VAT-inclusive price) | 17.5% |
| Registration level from 1.4.00 | £52,000 per annum |
| Deregistration level from 1.4.00 | £50,000 per annum |
Tax free investments (ISA, TESSA, PEP)
Up to £7,000 can be invested in an Individual
Savings Account in 2000/01, no more than £3,000 in the "cash
component" and no more than £1,000 in the "life assurance
component".
A Tax Exempt Special Savings Account (TESSA) opened by 5.4.99 can run
for 5 years, and be increased by £1,800pa to a maximum capital balance
of £9,000.
No additions can be made to a Personal Equity Plan after 5.4.99, but income
and gains within the PEP remain tax free, and the tax credit on dividends
will be repaid until 5.4.04 at a rate of 10/90.
National Insurance Contributions
Class 1 (employees)
| Within SERPS | Contracted Out | ||
| Salary | Money | ||
| Related | Purchase | ||
| Employee contributions | |||
| - on earnings between £76.01 and £535pw | 10.0% | 8.4% | 8.4% |
| Employer contributions | |||
| - on earnings between £84.01 and £535pw | 12.2% | 9.2% | 11.6% |
| - on earnings above £535pw | 12.2% | 12.2% | 12.2% |
Employer contributions (at 12.2%) will be paid on most benefitsin kind from 6.4.2000, and on tax paid on an employee's behalf under a PAYE settlement agreement.
Class 2 (Self-employed)
| Flat rate per week | £2.00 |
| Small earnings exception: profits per annum | £3,825 |
Class 3
(Voluntary)
| Flat rate per week | £6.55 |
Class 4 (Self-employed)
| On profits £4,385 - £27,820 (Max £1,640.45) | 7.0% |
Personal
Pensions (PPPs)
and Retirement Annuity Premiums (RAPs)
| Max contributions: | % Of Net Relevant Earnings | ||||
| Age at beginning of year | RAPs% | PPPs% | |||
| 35 or less | 17.5 | 17.5 | |||
| 36 - 45 | 17.5 | 20.0 | |||
| 46 - 50 | 17.5 | 25.0 | |||
| 51 - 55 | 20.0 | 30.0 | |||
| 56 - 60 | 22.5 | 35.0 | |||
| 61 and over | 27.5 | 40.0 | |||
Maximum net relevant earnings for 2000/01 PPPs: £91,800. No limit for RAPs.
| Charges on or after 6th April 2000 | Rates % | Charges between 6th April 1999 and 5th April 2000 |
| 0 - £234,000 | NIL | 0 - £231,000 |
| Above £234,000 | 40% | Above £231,000 |
Lifetime chargeable
transfers at half the death rate, ie 20%.
Business property relief of 100% for all shareholdings in qualifying unquoted
trading companies and for most unincorporated trading businesses; agricultural
property relief at 100% for qualifying holdings of agricultural land.
Annual exemption for lifetime gifts £3,000.
Small gifts - annual amount per donee £250.
Reduced tax charge on transfers within 7 years of death
| Years before death | Percentage of death rates |
| 0 - 3 | 100% |
| 3 - 4 | 80% |
| 4 - 5 | 60% |
| 5 - 6 | 40% |
| 6 - 7 | 20% |
| Over 7 | NIL |
Annual exempt amount 2000/01: individuals £7,200, trustees £3,600. Relief given for effect of inflation for periods of ownership up to April 1998. Tapering relief given for periods of ownership after 6 April 1998 (with one year added for ownership on 17.3.98 in the case of non-business assets):
| Disposal after 5.4.00 | % of gain charged | |
| Business asset | Non-business asset | |
| 0 - 1 year | 100% | 100% |
| 1 - 2 years | 87.5% | 100% |
| 2 - 3 years | 75% | 100% |
| 3 - 4 years | 50% | 100% |
| 4 - 5 years | 25% | 100% |
Taper increases at 5% p.a. for investment assets up to a maximum of 10 years (40% relief).
Retirement relief for disposals 6.4.2000 - 5.4.2001: max. relief is 100% of first £150,000 plus 50% of balance of gain up to £600,000. Relief is phased out by 5.4.2003.
Net gains after
all reliefs and annual exempt amount are taxed at marginal income tax
rates for interest income (ie 10%, 20%, 40%).
| % of Total Consideration | |
| Transfers by sale | |
| Shares and marketable securities | 0.5% |
| Land and other property | |
| 0 - £60,000 | NIL |
| £60,001 - £250,000 | 1% |
| £250,001 - £500,000 (2.5% before 28.3.00) | 3% |
| £500,001 and over (3.5% before 28.3.00) | 4% |
| Transfers by gift | NIL |
Earliest due dates for payment of tax
| Income Tax | |
| Employment | Most tax paid under PAYE |
| Interest, dividends | Lower/basic rate liability usually settled before receipt. |
| Untaxed sources, plus balance on employment, and higher rates on investment income (self assessment). | Payments on account for 2000/01 on 31.1.01 and 31.7.01 based on 1999/2000 tax; balance due 31.1.2002 with first instalment for 2001/2002. |
| Capital Gains Tax | 31 January following the end of the tax year. |
| Inheritance Tax | Normally 6 months after month of death. |
| Corporation Tax | Large
companies will pay instalments for periods ending after 30.6.99. Small/medium companies: 9 months and a day after end of period. |