| Income
tax |
2001/2002 |
|
2002/2003 |
|
|
|
| |
|
|
|
|
| |
£ |
|
|
£ |
|
| Personal |
4,535 |
|
4,615 |
|
| *Age:
'65-74 |
5,990 |
|
6,100 |
|
| 75
and over |
6,260 |
|
6,370 |
|
| Blind
person's |
1,450 |
|
1,480 |
|
| |
| |
| Rate
on taxable income |
band |
rate |
|
band |
rate |
|
| Other
than dividends and interest |
£ |
% |
|
£ |
% |
|
| Starting
rate (SR) on first |
1,880 |
10 |
|
1,920 |
10 |
|
| Basic
rate (BR) on next |
27,520 |
22 |
|
27,980 |
22 |
|
| Higher
rate (HR) on over |
29,400 |
40 |
|
29,900 |
40 |
|
| |
|
|
| Dividends
and interest -treated as top and next to top slices of income repectively. |
|
| Tax
credit (TC) = 1/9 x dividend |
|
|
| |
01/02
and 02/03 |
|
| Income
falling in |
SR
band |
BR
band |
HR
band |
|
| Dividends
(+TC) |
10% |
10% |
32.50% |
|
| Interest
(gross) |
10% |
20% |
40% |
|
| |
| |
| Discretionary
and A&M trusts |
34% |
|
34% |
|
| Schedule
F trust rate |
25% |
|
25% |
|
| |
|
|
| Allowances
available at 10% |
01/02 |
|
02/03 |
|
| |
£ |
|
£ |
|
| Children's
tax credit |
5,200 |
|
5,290 |
|
| baby
rate |
n/a |
|
10,490 |
|
| For
HR taxpayers, credit is reduced by £2 for every £3 of income in HR
band |
|
| *Married
couple's allowance |
|
| -
born before 6.4.35 |
5,365 |
|
5,465 |
|
| -
age 75 and over |
5,435 |
|
5,535 |
|
| *Income
limit for age allowances |
17,600 |
|
17,900 |
|
| |
|
|
| Other
major reliefs |
|
|
| |
01/02 |
|
02/03 |
|
| At
20% |
£'000 |
|
£'000 |
|
| Enterprise
investment scheme (max) |
150 |
|
150 |
|
| Venture
capital trust (max) |
100 |
|
100 |
|
| |
|
|
| Company
car scale charges |
|
|
| |
|
|
| Starting
in 2002/03, there are new scale charges based on the car's CO2 emission
rate |
|
| together
with a percentage of the list price; |
|
|
| -
15% of the list price if emissions<165g/km |
|
|
| -
1% increase per additional emissions of 5g/km |
|
|
| -
maximum benefit is 35% of list price where emissions>265g/km |
|
| -
For diesel engines add 3% unless engine meets EC's emission standards |
|
| (max
benefit is 35%) |
|
|
| |
|
|
| For
cars without an official CO2 emission rate: |
|
|
| Engine
capacity |
Registered |
|
Registered |
|
| |
on
or after 1.1.98 |
|
pre
1.1.98 |
|
| 1400cc
or less |
15% |
|
15% |
|
| 1401
- 2000cc |
25% |
|
22% |
|
| More
than 2000cc |
35% |
|
32% |
|
| In
2001/02 the company car charge depended on business miles, not emission
rates. |
|
| The
maximum was still 35% of list price. |
|
|
| |
|
|
| Fuel
benefit |
01/02 |
|
02/03 |
|
| Cylinder
capacity |
£ |
|
£ |
|
| 1400cc
or less -Petrol |
1,930 |
|
2,240 |
|
| 1400cc
or less -Diesel |
2,460 |
|
2,850 |
|
| 1401
to 2000cc -Petrol or diesel |
2,460 |
|
2,850 |
|
| Over
2000cc -Petrol or diesel |
3,620 |
|
4,200 |
|
| |
|
|
| Employers
are liable for Class 1A NICs on these charges, which apply to employees
earning |
|
| £8500
a year, and most directors. |
|
|
| |
|
|
| Use
of small vans including fuel |
£500 |
|
£500 |
|
| -over
four years old |
£350 |
|
£350 |
|
| |
| Cheap
loans |
|
| Official
rate of interest a year |
6.25% |
|
5% |
|
| Exemption
for total loans not above |
£5,000 |
|
£5,000 |
|
| |
|
|
| Statutory
mileage rates |
|
|
| In
2002/03, where employees use their own vehicles for business journeys,
statutory mileage |
|
| rates
(SMRs) have replaced the fixed - profit car scheme (FPCS) as follows: |
|
| |
|
|
| |
'01/02
FPCS |
|
02/03
SMR |
|
| |
First |
Additional |
|
First |
Additional |
|
| |
10,000
miles |
miles |
|
10,000
miles |
miles |
|
| up
to 1500cc |
40p |
25p |
|
40p |
25p |
|
| 1501
to 2000cc |
45p |
25p |
|
45p |
25p |
|
| Over
2000cc |
63p |
36p |
|
63p |
36p |
|
| |
|
|
| In
2002/03, the above rates also apply to vans, while motor cycles receive
a rate of 24p a |
|
| mile
and bicycles a rate of 20p. In addition, employees may be paid up
to an additional 5p a |
|
| mile
per passenger for carrying fellow employees on the same business trip. |
|
| |
|
|
| Capital
gains tax |
|
|
| |
01/02 |
|
02/03 |
|
| Annual
exemption (AE) |
£ |
|
£ |
|
| -
individuals |
7,500 |
|
£7,700 |
|
| -
trustees |
3,750 |
|
£3,850 |
|
| Gains
in excess of AE taxed as if additional income |
|
| -
individuals |
|
| -
up to SR limit |
10% |
|
10% |
|
| -
between SR limit and HR threshold |
20% |
|
20% |
|
| -
above HR threshold |
40% |
|
40% |
|
| -
trustees |
34% |
|
34% |
|
| Chattels
exemption |
6,000 |
|
6,000 |
|
| Retirement
relief - maximum |
250,000 |
|
125,000 |
|
| From
6.4.03 retirement relief will be abolished |
|
|
| Indexation
allowance was frozen at 5.4.98 for individuals |
|
|
| |
|
|
| Taper
relief, which replaces both indexation and retirement relief, reduces
the percentage of the |
|
| gain
that is chargeable as shown in the table below, which applies to 2002/03.
The change from |
|
| indexation
to taper relief does not apply to companies. |
|
|
| Business
assets |
|
|
Non
- business assets |
|
| Whole
years |
%
of gain |
Whole
years |
%
of gain |
Whole
years |
|
%
of gain |
| asset
owned |
chargeable |
asset
owned |
chargeable |
asset
owned |
|
chargeable |
| 1 |
50 |
1 |
100 |
6 |
|
80 |
|
| 2
or more |
25 |
2 |
100 |
7 |
|
75 |
|
| |
|
3 |
95 |
8 |
|
70 |
|
| |
|
4 |
90 |
9 |
|
65 |
|
| |
|
5 |
85 |
10
or more |
|
60 |
|
| All
non-business assets acquired before 17.3.98 qualify for one extra
year of ownership. |
|
| National
insurance contributions |
|
|
| |
01/02 |
|
|
02/03 |
|
| |
£ |
|
|
£ |
|
| Class
1 Employment |
|
| Lower
earning limit: per week |
72 |
|
75 |
|
| Lower
earning limit: per annum |
3,744 |
|
3,900 |
|
| Upper
earnings limit: per week |
575 |
|
585 |
|
| Upper
earnings limit: per annum |
29,900 |
|
30,420 |
|
| Primary
threshold (employee): per week |
87 |
|
89 |
|
| Primary
threshold (employee): per annum |
4,535 |
|
4,615 |
|
| Secondary
threshold (employers): per week |
87 |
|
89 |
|
| Primary
threshold (employee): per annum |
4,535 |
|
4,615 |
|
| Employee's
contributions |
10% |
|
10% |
|
| -
on weekly earnings between |
87/575 |
|
89/585 |
|
| Employee's
contracted-out rebate |
1.60% |
|
1.60% |
|
| Married
woman's reduced rate |
3.85% |
|
3.85% |
|
| Employer's
contributions |
11.90% |
|
11.80% |
|
| -
on weekly earnings over |
87 |
|
89 |
|
| Employer's
contracted-out rebate |
|
| -
salary related |
3% |
|
3.50% |
|
| -
money purchase |
0.60% |
|
1% |
|
| Classes
1A + 1B |
|
| Employer |
|
| (A)
Car, car fuel and other taxable benefits |
11.90% |
|
11.80% |
|
| (B)
PAYE settlement agreements |
11.90% |
|
11.80% |
|
| Class
2 |
|
| Self-employed
per week |
2 |
|
2 |
|
| Annual
earnings exception limit |
3,955 |
|
4,025 |
|
| Class
3 |
|
|
| Voluntary
per week |
6.75 |
|
6.85 |
|
| Class
4 |
|
| Self-employed
(rate on profits) |
7% |
|
7% |
|
| Lower
annual profits limit |
4,535 |
|
4,615 |
|
| Upper
annual profits limit |
29,900 |
|
30,420 |
|
| Maximum
Class 4 contributions |
1,776 |
|
1,806 |
|
| |
| |
|
|
| Stamp
duty |
|
|
| |
since
28.3.01 |
|
| Shares
and securities |
0.50% |
|
| Other
property - up to £60,000 |
Nil |
|
| Other
property - £60,001 to £250,000 |
1% |
|
| Other
property- £250,001 to £500,000 |
3% |
|
| Other
property - over £500,000 |
4% |
|
| From
30.11.01, there is a stamp duty exemption for certain property sales
in "deprived" areas |
|
| for
consideration up to £150,000. |
|
|
| |
|
|
| Corporation
tax |
|
|
| |
|
|
| Rate
for financial years ended |
|
|
| |
Band |
Rate |
|
Band |
Rate |
|
| |
£ |
% |
|
£ |
% |
|
| Starting
rate on first |
10,000 |
10 |
|
10,000 |
0 |
|
| Marginal
rate on next (a) |
40,000 |
22.5 |
|
40,000 |
23.75 |
|
| Small
companies rate on next |
250,000 |
20 |
|
250,000 |
19 |
|
| Marginal
rate on next (b) |
1.2m |
32.5 |
|
1.2m |
32.75 |
|
| Standard
rate on over |
1.5m |
30 |
|
1.5m |
30 |
|
| Marginal
relief fraction (a) |
|
1/40 |
|
19/400 |
|
| Marginal
relief fraction (b) |
|
1/40 |
|
11/400 |
|
| Shadow
ACT |
|
1/4 |
|
1/4 |
|
| |
|
|
| Companies
whose profits for a second or subsequent year exceed £1.5m* must pay
quarterly |
|
| instalments
of CT starting six months and 13 days after the start of the accounting
period. |
|
| *
Limits shared equally between associated companies. |
|
|
| |
|
|
| Capital
allowances |
|
|
| |
|
|
| Plant
and machinery; patents; know-how |
|
|
| Writing-down
allowance on reducing balance |
|
|
| -
Generally (car maximum £3000 pa) |
25% |
|
| -
Certain long-life assets |
6% |
|
| First-year
allowance on expenditure (other than cars and certain other assets)
incurred by: |
|
| -
small and medium sized businesses |
40% |
|
| -
small businesses on info. Technology to 31.3.03 |
100% |
|
| -
any business on energy saving plant as designated by Energy Technology List |
100% |
|
| Industrial
and agricultural buildings; hotels; dredging |
|
| Writing-down
allowance on cost |
4% |
|
| Commercial
buildings in enterprise zones; scientific research and flats over
shops |
|
| Initial
allowance |
100% |
|
| |
|
|
| Interest
on tax |
|
|
| |
|
|
| Annual
rates at 8.3.02 |
paid
late |
repaid |
|
| Income
tax, CGT and NIC |
6.50% |
2.50% |
|
| Inheritance
tax |
3% |
3% |
|
| Corporation
tax (CT) |
|
| -
Accounting periods ending after 30.9.93 (Pay and File) |
5% |
2% |
|
| -
Accounting periods ending after 30.6.99 (CTSA) |
6.50% |
3% |
|
| -
Instalment payments |
5% |
3.75% |
|
| *Allowable
/ chargeable for CT |
|
|
| |
|
|
| Value
added tax |
|
|
| |
|
|
| Standard
rate |
|
17.50% |
|
| Domestic
fuel, power and energy saving measures |
|
5% |
|
| Thresholds
from |
1.4.01 |
|
|
1.4.02 |
|
| |
£'000 |
|
|
£'000 |
|
| Registration
limit pa |
54 |
|
55 |
|
| Deregistration
limit pa |
52 |
|
53 |
|
| Annual
accounting - turnover limit pa |
600 |
|
600 |
|
| Cash
accounting - turnover limit pa |
600 |
|
600 |
|
| |
| Inheritance
tax |
|
| |
01/02 |
|
|
02/03 |
|
| Exempt
band |
£242,000 |
|
£250,000 |
|
| Rate
on excess over exempt band |
|
|
| Chargeable
lifetime transfers |
|
|
| Death
transfers |
|
|
| Transfers
made within seven years of death |
|
|
| The
40% rate applies subject to tapering relief as follows: |
|
|
| Years
between death and gift |
0-3 |
3-4 |
4-5 |
5-6 |
6-7 |
|
| Tapering
relief |
Nil |
20% |
40% |
60% |
80% |
|
| Business
/ agricultural property relief at 100% or 50% may apply. |
|
| |
| Exemptions |
|
£ |
|
| Annual |
|
3,000 |
|
| Small
gifts - to any one person |
|
250 |
|
| Gifts
in consideration of marriage - parent |
|
5,000 |
|
| -
grandparent |
|
2,500 |
|
| -
other |
|
1,000 |
|
| Gifts
to charity |
|
unlimited |
|
| Regular
gifts out of surplus income are also exempt. |
|
|
| Individual
savings accounts |
|
|
| |
|
|
| No
tax on interest, dividends or capital gains |
|
|
| |
|
|
| |
02/03 |
|
| Maximum
annual investment for persons aged 18 or over |
|
£ |
|
| Mini
- Cash* |
|
up
to 3000 |
|
| Mini
- Life insurance |
|
up
to 1000 |
|
| Mini
- Stocks and shares |
|
up
to 3000 |
|
| Maxi
- Cash |
|
up
to 3000 |
|
| Maxi
- Life insurance |
|
up
to 1000 |
|
| Maxi
- Stocks and shares |
|
balance
to 7000 |
|
| |
|
|
| *
16 and 17 year olds may invest up to £3,000 in a cash ISA |
|
|
|
|
|
|
|
|
|
|
