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Tax Rates 2001 / 02
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Allowed at top rate of tax |
2001/02 |
2000/2001 |
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Personal allowance |
£4,535 |
£4,385 |
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Personal allowance (65 -74) |
£5.990 |
£5,790 |
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|
Personal Allowance (75+) |
£6.260 |
£6.050 |
|
| Blind person's allowance | £1,450 | £1,400 | |
| Allowed only at 10% | |||
| Children's tax credit** | £5,200 | £0 | |
| Married Couple's Allowance (65 - 74)* | £5,365 | £5,185 | |
| Married Couple's Allowance (75+)* | £5,435 | £5,255 | |
| Widow's Bereavement Allowance*** | Nil | £2,000 | |
| Income limit for age-related allowances | |||
| *Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple's allowance. MCA is reduced to a minimum of £2,070 (2000/01: £2,000). | |||
| **Reduced by £2 for every £3 of income charged at higer rate. | |||
| ***Withdrawn in respect of deaths occurring after 5.4.2000. | |||
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Allowed only at 10% |
2001/02 |
2000/2001 |
|
|
Individual Savings Account annual limit |
£7,000 |
£7,000 |
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Rent a room exemption |
£4,250 |
£4,250 |
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|
Enterprise Investment Scheme annual limit* |
£150,000 |
£150,000 |
|
| Venture Capital Trust annual limit* | £100,000 | £100,000 | |
| *Relief restricted to 20% | |||
| 2001/02 | 2000/2001 | |||||
| Lower rate on first | £1,880 | £1,520 | ||||
| Basic rate on next | 27,520 | 26,880 | ||||
| Higher rate at taxable income over | 29,400 | 28,400 | ||||
| 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% | 22% |
| 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 |
||
| Main rate | 30% | |
| Profits above | £1.5m | |
| Small companies rate | 20% | |
| Profits between | £50K - £300K | |
| Starting rate | 10% | |
| profites below | £10K | |
| Marginal bands: | ||
| - small/large | £300K - £1.5m | |
| - effective rate | 32.5% | |
| - starting/small | £10K - £50K | |
| - effective rate | 22.5% | |
| Fraction | 1/40 |
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Allowance % |
|
Plant and machinery |
|
|
- first year allowance for small or medium businesses |
*40 |
|
- writing down allowance (6% on some long life assets) |
25 |
|
- computers for small businesses |
**100 |
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- cars (max £3,000pa) |
25 |
|
Industrial buildings writing down allowance |
4 |
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* 100% if assets to be used in Northern Ireland. |
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** For three years from 1.4.2000. |
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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 2002 and the business mileage from 6 April 2001 to 5 April 2002.
| 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 5.4.2002 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 | ||||
| 2001/02(2000/01) | 2001/02(2000/01) | ||||
| Up to 1,400cc | £1,930 (£1,700) | £2,460 (£2,170) | |||
| 1401 - 2,000cc | £2,460 (£2,170) | £2,460 (£2,170) | |||
| Over 2,000cc | £3,620 (£3,200) | £3,620 (£3,200) | |||
Tax free mileage allowances
| Up to 4,000 miles | Over 4,000 miles | ||||
| 2001/02(2000/01) | 2001/02(2000/01) | ||||
| Cars up to 1000cc | 40p (28p) | 25p (17p) | |||
| Cars 1001-1500cc | 40p (35p) | 25p (20p) | |||
| Cars 1501-2000cc | 45p (45p) | 25p (25p) | |||
| Cars over 2000cc | 63p (63p) | 36p (36p) | |||
| Motorcycles | 24p (24p) | 24p (24p) | |||
| Bicycles | 12p (12p) | 24p (24p) | |||
| Standard rate (7/47 of VAT-inclusive price) | 17.5% |
| Registration level from 1.4.01 | £54,000 per annum |
| Deregistration level from 1.4.01 | £52,000 per annum |
Tax free investments (ISA, TESSA, PEP)
Up to £7,000 can be invested in an Individual Savings
Account in 2001/02, 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 (as for ISAs) 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 £87.01 and £575pw | 10.0% | 8.4% | 8.4% |
| Employer contributions | |||
| - on earnings between £87.01 and £575pw | 11.9% | 8.9% | 11.3% |
| - on earnings above £575pw | 11.9% | 11.9% | 11.9% |
Employer contributions (at 11.9%) are due on most benefits in kind 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 | £3,955 |
Class 3
(Voluntary)
| Flat rate per week | £6.75 |
Class 4 (Self-employed)
| On profits £4,535 - £29,900 (Max £1,775.55) | 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 2001/02 PPPs: £95,400. No limit for RAPs.
People with no net relevant earnings can pay contributions of £3,600
gross in 2001/02, except for some members of occupational pension schemes.
| Charges on or after 6th April 2000 | Rates % | Charges between 6th April 1999 and 5th April 2000 |
| 0 - £242,000 | NIL | 0 - £234,000 |
| Above £242,000 | 40% | Above £234,000 |
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 2001/02: individuals £7,500, trustees £3,750. 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% | 95% |
| 4 - 5 years | 25% | 90% |
Taper increases at 5% p.a. for none business assets up to a maximum of 10 years (40% relief).
Retirement relief for disposals 6.4.2001 - 5.4.2002: max. relief is 100% of first £100,000 plus 50% of balance of gain up to £400,000. 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 | 3% |
| £5000,001 and over | 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 2001/02 on 31.1.02 and 31.7.02 based on 2000/2001 tax; balance due 31.1.2003 with first instalment for 2002/2003. |
| 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 pay by instalments starting 6.5 months through the period. Small/medium companies: 9 months and a day after end of period. |