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Tax Rates 2002 / 03
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Allowed at top rate of tax |
2002/03 |
2001/02 |
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Personal allowance |
£4,615 | £4,535 | |
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Personal allowance (65 -74) |
6,100 | 5,990 | |
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Personal Allowance (75+) |
6,370 | 6,260 | |
| Blind person's allowance | 1,480 | 1,450 | |
| Allowed only at 10% | |||
| Children's tax credit** | £5,290 | £5,200 | |
| Children's tax credit - baby rate*** | 10,490 | - | |
| Married Couple's Allowance (65 - 74)* | 5,465 | 5,365 | |
| Married Couple's Allowance (75+)* | 5,535 | 5,435 | |
| Widow's Bereavement Allowance*** | Nil | £2,000 | |
| Income limit for age-related allowances | 17,900 | 17,600 | |
| * 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 £2,110 (2001/02: £2,070). | |||
| ** Reduced by £2 for every £3 of income charged at higher rate. | |||
| *** Only available in the year of the child's birth. Reduced as for CTC. | |||
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Important limits |
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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 |
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| Venture Capital Trust annual limit* | £100,000 | £100,000 | |
| *Relief restricted to 20% | |||
| 2002/03 | 2001/2002 | |||||
| Lower rate on first | £1,920 | £1,880 | ||||
| Basic rate on next | 27,980 | 27,520 | ||||
| Higher rate at taxable income over | 29,900 | 29,400 | ||||
| Tax rates 2002/03 (unchanged from 2001/02) | ||||||
| Rate differs for Dividends/Interest/Other | D | I | O | |||
| Starting rate | 10% | 10% | 10% | |||
| Basic rate | 10% | 20% | 22% | |||
| Higher rate | 32.5% | 40% | 40% | |||
| Dividends taxed as highest part of income, then interest | ||||||
| Discretionary trust rate (25% on dividends) | 34% | |||||
| Year to 31.3.2003 | 31.3.2002 | |
| Main rate | 30% | 30% |
| Profits above | £1.5m | £1.5m |
| Small companies rate | 19% | 20% |
| Profits between | £50k - £300k | £50k - £300k |
| Starting rate | 0% | 10% |
| Profits below | £10k | £10k |
| Small/large marginal band | £300k - £1.5m | £300k - £1.5m |
| Fraction (effective rate) | 11/400 (32.75%) | 1/40 (32.5%) |
| Starting/small marginal band | £10k - £50k | £10k - £50k |
| Fraction (effective rate) | 19/400 (23.75%) | 1/40 (22.5%) |
| 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 |
| - 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. |
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Car benefit assessment 2002/03
| Charge based on a percentage of the initial list price of the car, including accessories, delivery charges and VAT. The percentage depends on the carbon dioxide emissions rating of the car, and whether the engine runs on petrol or diesel. | ||
| Ratings | Petrol | Diesel |
| 0-165g/km | 15% | 18% |
| over 165g/km | +1% for each extra 5g/km | |
| Maximum | 35% | 35% |
| Special
rules apply to older cars which do not have a CO2 rating. Company vans are charged at £500 (£350 where 4 years or older). Employee contributions for private use are deducted from the taxable figure. |
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| Car fuel benefit | Petrol | Diesel |
| 2002/03 (2001/02) | 2002/03 (2001/02) | |
| Up to 1400cc | £2,240 (£1,930) | £2,850 (£2,460) |
| 1401 - 2000cc | £2,850 (£2,460) | £2,850 (£2,460) |
| Over 2000cc | £4,200 (£3,620) | £4,200 (£3,620) |
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
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Up
to 10,000 miles 2002/03
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Over
10,000 miles 2002/03
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| (4,000 miles 2001/02) | (4,000 miles 2001/02) | |
| Cars up to 1500cc | 40p (40p) | 25p (25p) |
| Cars 1501 - 2000cc | 40p (45p) | 25p (25p) |
| Cars over 2000cc | 40p (63p) | 25p (36p) |
| Motorcycles | 24p (24p) | 24p (24p) |
| Bicycles | 20p (12p) | 20p (12p) |
| Business passengers | 5p (-) | 5p (-) |
| Fuel-only allowances for company cars | ||
| Petrol | Diesel | |
| 2002/03 & 2001/02 | 2002/03 & 2001/02 | |
| Up to 1400cc | 10p | 9p |
| 1401 - 2000cc | 12p | 9p |
| Over 2000cc | 14p | 12p |
| Standard rate (7/47 of VAT-inclusive price) | 17.5% | |||||||||||||||||||||||||||||||||||||
| Registration level from 25.4.02 | £55,000 per annum | |||||||||||||||||||||||||||||||||||||
| Deregistration level from 25.4.02 | £53,000 per annum | |||||||||||||||||||||||||||||||||||||
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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 (Employee) | |||
| Within SERPS | Contracted Out | ||
| Salary Related | Money Purchase | ||
| Employee contributions - on earnings between £89.01 and £585pw | 10.0% | 8.4% | 8.4% |
| Employer contributions - on earnings between £89.01 and £585pw | 11.8% | 8.3% | 10.8% |
| Employer contributions - on earnings above £585pw | 11.8% | 11.8% | 11.8% |
| Employer contributions (at 11.8%) 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 annnum | £4,025 | ||
| Class 3 (Voluntary) | |||
| Flat rate per week | £6.85 | ||
| Class 4 (Self-employed) | |||
| On profits £4,615 - £30,420 (Max £1,806.35) | 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 2002/03 PPPs: £97,200. No limit for RAPs. People with no net relevant earnings can pay contributions of £3,600 gross in 2002/03, except for some members of occupational pension schemes. |
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| Charges on or after 6th April 2002 | Rates % | Charges between 6th April 2001 and 5th April 2002 |
| 0 - £250,000 | NIL | 0 - £242,000 |
| Above £250,000 | 40% | Above £242,000 |
| Lifetime
chargeable transfers at half the death rate, ie 20%. Business property relief of 100% for all the 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. |
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| Reduced tax charge on transfers within 7 years of death | ||
| Years before death | Percentage of death rates | |
| 0 - 3 |
100%
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| 3 - 4 |
80%
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| 4 - 5 |
60%
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| 5 - 6 |
40%
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| 6 - 7 |
20%
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| Over 7 |
NIL
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| Annual exempt amount 2002/03: individuals £7,700, trustees £3,850. Relief given for effect of inflation for periods of ownership upto 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 5.4.02 | % of gain charged | |
| Owned for: | Business asset | Non-business asset |
| 0 - 1 year | 100% | 100% |
| 1 - 2 year | 50% | 100% |
| 2 - 3 year | 25% | 100% |
| 3 - 4 year | 25% | 95% |
| 4 - 5 year | 25% | 90% |
| 5 - 6 year | 25% | 85% |
| Taper
increases at 5% p.a. for non-business assets up to a maximum of
10 years (40% relief). Retirement relief for disposals 6.4.2002 - 5.4.2003: max. relief is 100% of first £50,000 plus 50% of balance of gain up to £200,000. Relief is abolished after 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%). |
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| % of Total Consideration | |
| Shares and marketable securities | 0.5% |
| Land and property | |
| 0 - £60,000 | NIL |
| £60,001 - £250,000 | 1% |
| £250,001 - £500,000 | 3% |
| £500,001 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) | Payment on account for 2002/03 on 31.1.03 and 31.7.03 based on 2001/2002 tax; balance due 31.1.2004 with first installment for 2003/04. |
| 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 1/2 months through the accounting period; balance, and total for small/medium companies, 9 months and 1 day after end of period |