Inland Revenue and Customs and Excise Liason, Glasgow, Scotland

Inland Revenue and Customs and Excise Liason, Glasgow, Scotland  


Tax Tables:
2001/2002, 2002/2003, 2003/2004, 2004/2005 and 2005/2006
Click on the links below to Jump to the relevant section.
Income Tax Rates
 Fixed Profit Car Scheme
Allowances and Reliefs VAT
Capital Gains Tax National Insurance Contributions 2001/2002
Capital Allowances National Insurance Contributions 2002/2003
Personal Pensions National Insurance Contributions 2003/2004
Inheritance Tax National Insurance Contributions 2004/2005
Corporation Tax National Insurance Contributions 2005/2006
Car and Fuel Benefits  

Income Tax Rates
Taxable Bands 2001 - 02 (£)
Starting rate 10 per cent 0 - 1,880
Basic rate 22 per cent 1,881 - 29,400
Higher rate 40 per cent Over 29,400
Taxable Bands 2002 - 03 (£)
Starting rate 10 per cent 0 - 1,920
Basic rate 22 per cent 1,921 - 29,900
Higher rate 40 per cent Over 29,900
Taxable Bands 2003 - 04 (£)
Starting rate 10 per cent 0 - 1,960
Basic rate 22 per cent 1,961 - 30,500
Higher rate 40 per cent Over 30,500
Taxable Bands 2004 - 05 (£)
Starting rate 10 per cent 0 - 2,020
Basic rate 22 per cent 2,021 - 31,400
Higher rate 40 per cent Over 31,400
Taxable Bands 2005 - 06 (£)
Starting rate 10 per cent 0 - 2,090
Basic rate 22 per cent 2,091 - 32,400
Higher rate 40 per cent Over 32,400
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Allowances and Reliefs
  2001 - 02 (£) 2002 - 03 (£) 2003 - 04 (£) 2004 - 05 (£) 2005 - 06 (£)
Personal allowance 4,535 4,615 4,615 4,745 4,895
Personal allowance:
age 65-74 		5,990 6,100 6,610 6,830 7,090
Personal allowance:
age 75 and over		 6,260 6,370 6,720 6,950 7,220
Married couples allowance:
age 65 before 6 April 1935 		5,365 5,465 5,565 5,725 5,905
Married couples allowance:
age 75 or more 		5,435 5,535 5,635 5,795 5,975
Married couples allowance:
minimum amount 		2,070 2,110 2,150 2,210 2,280
Income limit for age - related allowances 17,600 17,900 18,300 18,900 19,500
Widows bereavement allowance N/A N/A N/A N/A N/A
Blind persons allowance 1,450 1,480 1,510 1,560 1,610
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Capital Gains Tax
  2001 - 02 (£) 2002 - 03 (£) 2003 - 04 (£) 2004 - 05 (£) 2005 - 06 (£)
Capital gains tax
annual exempt amount		          
Individuals etc 7,500 7,700 7,900 8,200 8,500
Other trustees 3,750 3,850 3,950 4,100 4,250
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Capital Allowances 

Writing down allowance
Plant and Machinery 25% (40% first year allowance)
Motor Cars 25% £3000 max
Industrial Buildings 4%
Agricultural Buildings 4%
Hotels 4%
Information & Communications Technology 25% (100% first year allowance)

First year allowances for information and communications technology (abolised after March 2004) were at the rate of 100% for small businesses.

Small businesses if less than 50 employees turnover less than 2.8M and total assets less than 1.4M.

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Personal Pensions
Contribution limit- % of net relevant earnings
Age on 6 April 2005 PPS RAP
35 or less 17.5 17.5
36-45 20.0 17.5
46-50 25.0 17.5
51-55 30.0 20.0
56-60 35.0 22.5
61-74 40.0 27.5

The details based on 1999/2000 but are unchanged for the new tax year 2000/2001.

  2001/2002
£ 		2002/2003
£ 		2003/2004
£ 		2004/2005
£ 		2005/2006
£
Pension Schemes Earning Cap 95,400 97,200 99,000 102,000 105,600
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Inheritance Tax
Death
Rate		 Lifetime
Rate 		2001/02 2002/03 2003/04 2004/05 2005/06
% % £000s £000s £000s £000s £000s
Nil Nil 0-242 0-250 0-255 0-263 0-275
40 20 Over 242 Over 250 Over 255 Over 263 Over 275
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Corporation Tax
Corporation tax profits
1999-00 (£)
Small companies rate 20 per cent
 0 - 300,000
Marginal relief
 300,001 - 1,500,000
Main rate 30 per cent
 1,500,001 or more
Corporation tax profits 2000 - 01 (£)
Starting rate 10 per cent
 0 - 10,000
Marginal relief 10,001 - 50, 000
Small companies rate 20 per cent 50,001 - 300,000
Marginal relief 300,000 - 1,500,000
Main rate 30 per cent 1,500,001 or more
Corporation tax profits 2001 - 02 (£)
Starting rate 10 per cent 0 - 10,000
Marginal relief 10,001 - 50, 000
Small companies rate 20 per cent 50,001 - 300,000
Marginal relief 300,000 - 1,500,000
Main rate 30 per cent 1,500,001 or more
Corporation tax profits 2002 - 03 (£)
Starting rate zero
 0 - 10,000
Marginal relief
 10,001 - 50, 000
Small companies rate 19per cent
 50,001 - 300,000
Marginal relief
 300,000 - 1,500,000
Main rate 30 per cent 1,500,001 or more
Corporation tax profits 2003 - 04 (£)
Starting rate zero
 0 - 10,000
Marginal relief
 10,001 - 50, 000
Small companies rate 19per cent
 50,001 - 300,000
Marginal relief
 300,000 - 1,500,000
Main rate 30 per cent 1,500,001 or more
Corporation tax profits 2004 - 05 (£)
Starting rate zero
 0 - 10,000
Marginal relief
 10,001 - 50, 000
Small companies rate 19per cent
 50,001 - 300,000
Marginal relief
 300,000 - 1,500,000
Main rate 30 per cent 1,500,001 or more
Corporation tax profits 2005 - 06 (£)
Starting rate zero
 0 - 10,000
Marginal relief
 10,001 - 50, 000
Small companies rate 19per cent
 50,001 - 300,000
Marginal relief
 300,000 - 1,500,000
Main rate 30 per cent 1,500,001 or more

The main rate of corporation tax for 2005-06 will be 30 per cent.

Corporation tax of at least 19% will be payable on all non-corporate distributions and dividends.
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Car and Fuel Benefits
Car fuel scale charge
    Up to 1400cc
(£) 		1401-2000cc
(£) 		Over 2000cc
(£)
2002/03 -petrol 2,240 2,850 4,200
  -diesel 2,850 2,850 4,200
2001/02 -petrol 1,930 2,460 3,620
  -diesel 2,460 2,460 3,620
2000/01 -petrol 1,700 2,170 3,200
  -diesel 2,170 2,170 3,200
1999/00 -petrol 1,210 1,540 2,270
  -diesel 1,540 1,540 2,270
The fuel scale charge is reduced to nil only if the employee pays for all private fuel.

Car and Fuel Benefits 2003 / 04

To calculate the benefit charge on free fuel the percentage figure will be multiplied against a set figure for the year. For the year 2003/04 the set figure will be £14,400.

For example:
A car that has CO2 emissions of 195g/km
Percentage used to calculate the company car tax charge for 2003/04 is 23%. The fuel scale charge will be 14,400 x 23% = £3,312.

To calculate the car benefit charge you will need to know the price of the car for tax purposes and the approved CO2 emissions figure for the particular vehicle.

Example 1
Petrol car with an approved CO2 emissions figure. The price of the car for tax purposes is £15,000. The approved CO2 emissions figure is
183g/ km.

* Round 183 down to 180.
* Look up percentage of the car's price to be taxed for 180g/ km CO2 for the relevant year in the ready reckoner below:

Percentage charge is 20%.
*Basic car benefit charge is £15,000 x 20% = £3,000.

Example 2
Diesel car with an approved CO2 emissions figure.
The price of the car for tax purposes is £20,000. The approved CO2 emissions figure is 172g/ km.
Round 172 down to 170.
Look up percentage of car's price to be taxed for the relevant year in the ready reckoner below:

Percentage charge is 18%.
* Add 3% diesel supplement, so percentage charge becomes 21%.
* Basic car benefit charge is £20,000 x 21% = £4,200.

CO2 emissions in grams per kilometre Percentage of car's price to be taxed
2002 - 03 2003 - 04 2004 - 05 2005 - 06 2006 - 07  
165 155 145 140 140 15*
170 160 150 145 145 16*
175 165 155 150 150 17*
180 170 160 155 155 18*
185 175 165 160 160 19*
190 180 170 165 165 20*
195 185 175 170 170 21*
200 190 180 175 175 22*
205 195 185 180 180 23*
210 200 190 185 185 24*
215 205 195 190 190 25*
220 210 200 195 195 26*
225 215 205 200 200 27*
230 220 210 205 205 28*
235 225 215 210 210 29*
240 230 220 215 215 30*
245 235 225 220 220 31*
250 240 230 225 225 32*
255 245
235 230 230 33**
260 250 240 235 235 34***
265 255 245 240 240 35****

Diesel Supplements
* Add 3% if car runs solely on diesel.
** Add 2% if car runs solely on diesel.
*** Add 1% if car runs solely on diesel.
**** Maximum charge, so no diesel supplement.

The basic car benefit charge will be the car's price multiplied by the percentage charge for the CO2 emissions band in which the car falls, subject to:
• the addition of any diesel supplement, or
• discount for cars using alternative fuels and technologies.

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Fixed Profit Car Scheme
Income tax year Car engine size (cc) Rate pence per mile
    First 4000 business miles Over 4000 business miles
1999-00 up to 1000 28.0 17.0
  1001-1500 35.0 20.0
  1501-2000 45.0 25.0
  over 2000 63.0 36.0
2000-01 up to 1000 28.0 17.0
  1001-1500 35.0 20.0
  1501-2000 45.0 25.0
  over 2000 63.0 36.0
2001-02 up to 1000 40.0 25.0
  1001-1500 40.0 25.0
  1501-2000 45.0 25.0
  over 2000 63.0 36.0

From 6 April 2002, there is a new system for working out whether you have to pay tax and NICs on any payments your employer makes to you using your own vehicle for business journeys. Under the new rules, there is a maximum amount that you can recieve without paying tax. This is called an approved mileage allowance payment (AMAP) and is calculated by using approved mileage rates.

Approved mileage rates
From 6 April 2002 onwards First 10,000 business miles in the tax year Each mile over 10,000 miles in the tax year
Cars and vans 40p 25p
Motor cycles 24p 24p
Bicycles 20p 20p
Passengers 5p 5p
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National Insurance Contributions 2001/02
Item
2001/02
Lower Earnings Limit £72 per week
Upper Earnings Limit £575 per week
Primary Threshold £87 per week
Secondary Threshold £87 per week
Employees contributions 10% of £87.01 to £575 per week
Employees Contracted-out Rebate 1.6%
Married Women Reduced Rate 3.85%
Employers Contribution Rates 11.9% on earnings above £87 per week
Employers Contracted-out Rebate 3.0% COSR
0.6% COMP
Class 2 Self employed Contribution £2 per week
Small Earnings Exception £3,955 per year
Class 3 (voluntary) Contribution £6.75 per week
Class 4 Contributions-Upper Profits Limit £29,900 per year
Class 4 Contributions-Lower Profits Limit £4,535 per year
Class 4-Contribution Rate 7.0%
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National Insurance Contributions 2002/03
Item
2002/03
Lower Earnings Limit £75 per week
Upper Earnings Limit £585 per week
Primary Threshold £89 per week
Secondary Threshold £89 per week
Employees contributions 10% of £89.01 to £585 per week
Employees Contracted-out Rebate 1.6%
Married Women Reduced Rate 3.85%
Employers Contribution Rates 11.8% on earnings above £89 per week
Employers Contracted-out Rebate 3.5% COSR
1.0% COMP
Class 2 Self employed Contribution £2 per week
Small Earnings Exception £4,025 per year
Class 3 (voluntary) Contribution £6.85 per week
Class 4 Contributions-Upper Profits Limit £30,420 per year
Class 4 Contributions-Lower Profits Limit £4,615 per year
Class 4-Contribution Rate 7.0%
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National Insurance Contributions 2003/04
Item
2003/04
Lower Earnings Limit £77 per week
Upper Earnings Limit £595 per week
Primary Threshold £89 per week
Secondary Threshold £89 per week
Employees contributions 11% of £89.01 to £595 per week
Employees Contracted-out Rebate 1.6%
Married Women Reduced Rate 4.85%
Employers Contribution Rates 12.8% on earnings above £89 per week
Employers Contracted-out Rebate 3.5% COSR
1.0% COMP
Class 2 Self employed Contribution £2 per week
Small Earnings Exception £4,095 per year
Class 3 (voluntary) Contribution £6.95 per week
Class 4 Contributions-Upper Profits Limit £30,940 per year
Class 4 Contributions-Lower Profits Limit £4,615 per year
Class 4-Contribution Rate 8.0%
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National Insurance Contributions 2004/05
Item
2004/05
Lower Earnings Limit £79 per week
Upper Earnings Limit £610 per week
Primary Threshold £91 per week
Secondary Threshold £91 per week
Employees contributions

11% of £91.01 to £610 per week

1% above £610 per week
Employees Contracted-out Rebate 1.6%
Married Women Reduced Rate 3.85%
Employers Contribution Rates 11.8% on earnings above £91 per week
Employers Contracted-out Rebate 3.5% COSR
1.0% COMP
Class 2 Self employed Contribution £2.05 per week
Small Earnings Exception £4,215 per year
Class 3 (voluntary) Contribution £7.15 per week
Class 4 Contributions-Upper Profits Limit £31,720 per year
Class 4 Contributions-Lower Profits Limit £4,745 per year
Class 4-Contribution Rate 8.0%
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