Income tax, Capital Gains Tax, Inheritance Tax Rates - 2007/8
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.
Posted March 21, 2007
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