Databank |
Dated 25/11/2005 |
|
|
| Tax Bands |
2004 - 2005 |
2005 - 2006 |
| Lower Rate Tax Band |
£2,020 |
£2,090 |
| Tax in Band |
£202.00 |
£209.00 |
| Rate |
10% |
10% |
| Basic Rate Tax Band |
£2,021 - £31,400 |
£2,091 - £32,400 |
| Tax in Band |
£6,463.60 |
£6,668.20 |
| Rate |
22% |
22% |
| Higher Rate Tax Band |
£31,400+ |
£32,400+ |
| Tax in Band |
unlimited |
unlimited |
| Rate |
40% |
40% |
2004 - 2005 |
2005 - 2006 |
| Personal allowance |
£4,745.00 |
£4,895.00 |
| Personal allowance 65-74 |
£6,830.00 |
£7090.00 |
| Personal allowance 75+ |
£6,950.00 |
£7,220.00 |
| Married couple's allowance* |
|
|
| ...if older partner aged 65-74* |
£5,725.00 |
£5,905.00 |
| ...if older partner aged 75+* |
£5,795.00 |
£5,975.00 |
| ...minimum amount |
£2,210.00 |
£2,280.00 |
| |
|
|
Age allowance withdrawn
(to personal allowance levels)
by £1 for every £2 of income over |
£18,900.00 |
£19,500.00 |
* = Relief given at 10% since 1999/2000.
|
|
| Bands |
2004 - 2005 |
2005 - 2006 |
| Nil Rate Band |
£263,000 |
£275,000 |
| Rate on excess on death |
40% |
40% |
| Exemptions & Gifts |
2004 - 2005 |
2005 - 2006 |
| Annual exemption per donor |
£3,000 |
£3,000 |
| Small gifts to any person |
£250 |
£250 |
| Wedding gifts by parents |
£5,000 |
£5,000 |
| Wedding gifts by grandparents |
£2,500 |
£2,500 |
| Wedding gifts by any other person |
£1,000 |
£1,000 |
| |
If you die after three years but within seven years of making a gift and the gift becomes liable to tax, taper relief means the recipient will not pay the full rate of IHT on the gift.
The table below shows the rates of tax payable: |
Years between
of death rate
gift & death
payable
|
|
%
tax
|
0 - 3 |
|
100 |
3 - 4 |
|
80 |
4 - 5 |
|
60 |
5 -6 |
|
40 |
6 - 7 |
|
20 |
|
| |
|
|
|
