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Income tax, Capital Gains Tax, Inheritance Tax Rates - 2007/8

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These are the Income Tax, CGT and Inheritance tax rates for the 2007/8 tax year. For the 2008/9 rates, announced on 12th March 2008, visit our tax rates section.

£ per year (unless stated)	2006-07	Change	2007-08
Income tax personal and age-related allowances
Personal allowance (age under 65)	£5,035	+£190	£5,225
Personal allowance (age 65-74)	£7,280	+£270	£7,550
Personal allowance (age 75 and over)	£7,420	+£270	£7,690
Married couple's allowance* (aged less than 75 and born before 6th April 1935)	£6,065	+£220	£6,285
Married couple's allowance* (age 75 and over)	£6,135	+£230	£6,365
Married couple's allowance* - minimum amount	£2,350	+£90	£2,440
Income limit for age-related allowances	£20,100	+£800	£20,900
Blind person’s allowance	£1,660	+£70	£1,730
Capital gains tax annual exempt amount
Individuals etc.	£8,800	+£400	£9,200
Most trustees	£4,400	+£200	£4,600
Inheritance tax threshold	£285,000	+£15,000	£300,000
Pension schemes allowances
Annual Allowance	£215,000	+£10,000	£225,000
Lifetime Allowance	£1,500,000	+£100,000	£1,600,000

*Married couple's allowance is given at the rate of 10 per cent.

£ per year	2006-07	2007-08
Starting rate: 10%*	£0-£2,150	£0-£2,230
Basic rate: 22%*	£2,151-£33,300	£2,231-£34,600
Higher rate: 40%*	Over £33,300	Over £34,600

* The rate of tax applicable to savings income in Section 1A ICTA 1988 remains at 20 per cent for income between the starting and basic rate limits. The rates applicable to dividends are 10 per cent for income up to the basic rate limit and 32.5 per cent above that.

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Posted March 21, 2007