Budget 2008 Introduction Personal Income Tax Tax Credits National Insurance Contributions Employees Savings Capital Gains Tax Inheritance Tax Stamp Duty Land Tax Corporation Tax Business Tax Value Added Tax Other Measures Tax Tables National Insurance

Tax Tables Table A Allowances and Reliefs   2008/09 2007/08   Allowed at top rate of tax     Personal Allowance £6,035 £5,225 Personal Allowance (65-74)* 9,030 7,550 Personal Allowance (75 and over)* 9,180 7,690 Blind Person's Allowance 1,800 1,730   Allowed only at 10%     Married Couple's Allowance (65-74)+* 6,535 6,285 Married Couple's Allowance (75 and over)+* 6,625 6,365 Income Limit for age-related allowances 21,800 20,900   + only available if born before 6th April 1935. * Age allowances are reduced £1 for every £2 by which income exceeds the income limit, until the age allowance is reduced to the normal allowance. Personal allowance is reduced before married couple's allowance. MCA is reduced to a minimum of £2,540 (2007/08: £2,440).   Bands 2008/09 2007/08 Starting * £2,230 Basic 34,800 32,370 Higher over 34,800 over 34,600 * Starting rate band within basic rate band for savings income only: £2,320.   Rates differ for General, Interest and Dividend income within each band: Rates 2008/09   2007/08   G I D   G I D Starting N/A 10% 10%   10% 10% 10% Basic 20% 20% 10%   22% 20% 10% Higher 40% 40% 32.5%   40% 40% 32.5% General income (salary, profit, rent) uses starting rate and basic rate bands before savings income. Dividends are taxed as the 'top slice' of income.   Table B Pension Contributions   The maximum annual tax efficient gross contributions (up to age 75) in 2008/09 are: - individuals:   £3,600 or 100% of earnings to £235,000 - employers:   £235,000 less employee contributions Maximum tax efficient fund (lifetime allowance) where benefits are taken in 2008/09: £1.65m. Only current earnings count for the 100% limit. It is no longer possible to use prior earnings or to carry back contributions to earlier years.   Table C Benefits In Kind   Car Benefit Assessment 2008/09 Charge based on a percentage of the initial list price of the car; the percentage depends on the carbon dioxide emission ratings of the car, if it has one. For older cars without a rating, the percentage depends on engine capacity. For 2008/09 the percentage for a petrol engine is 15% for ratings from 121g/km - 135g/km. The percentage increases by 1% for every complete 5g/km in excess of this (i.e. at 140,145 etc), to a maximum of 35%. Diesel cars have 3% added to this figure, but still have a maximum percentage of 35%.A new lower rate of 10% (13% diesel) is available for cars with a rating up to 120g/km.   Car Fuel Assessment The benefit is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £16,900 (2007/08: £14,400). The taxable amount is therefore between £1,690 (10% - min.) and £5,915 (35% - max.). 1 June 2008 – Company Car Advisory Fuel Rates Update: Engine size Petrol Diesel LPG 1,400cc or less 12p 13p 7p 1,401cc to 2,000cc 15p 13p 9p Over 2,000cc 21p 17p 13p