2008/09  2007/08  2006/07  2005/06  2004/05  2003/04 
                                      £        £        £        £        £       £ 
Personal (to 64)                    6,035    5,225    5,035    4.895    4,745    4,615
   ~     (65 - 74) *                9,030    7.550    7,280    7,090    6,830    6,610
Personal (75 up)   *                8,180    7,690    7,420    7,220    6,950    6,720       
Married Couple's Allce (1)             -        -        -        -        -  
   ~     (65 - 74)     (1)          6,535    6,285    6.065    5,950    5,725    5,565    
   ~     (75 up)       (1)          6,625    6,365    6,135    5,975    5,795    5,635
   As a reduction in tax:
   - Elder's spouse age < 75(2)     653,50   628.50   606.50   590.50   572.50
   - age 75 and over (2)            662,50   636.50   613.50   597.50   579.50
	
	
(1) Married Couples Allce abolished from 6/4/2000 except where one spouse was born before 6/4/1935.
(2) One spouse must have been born before 6 April 1935
	 
The minimum Married Couples 
Allowance for those aged 64 or over                                              2,210* 
As a reduction in tax               254.00   244.00   244.00  235.00   228.00   221.00
	

Widow's Bereavement                 2,000*   2,000*  2,000*    2,000*
Blind Persons                       1,800    1,730   1,660     1,610    1,560    1,510

                                    2008/09  2007/08 2006/07  2005/06  2004/05  2003/04  
      
Mortgage Interest Relief
on first £30,000 of advance
abolished from 6/4/2000 except
for persons aged 65 at that date       10%     10%     10%     10%      10%     10%   

                                    2008/09  2007/08 2006/07 2005/06  2004/05  2003/04 
                                       £         £       £       £        £        £    
The Personal Allowances for
persons aged 65 or over are				 
restricted where the Income				 
exceeds:                             21,800  20,900  20,100  19,500   18,900   18,300     
by                                     £1      £1      £1      £1       £1       £1      
for every                              £2      £2      £2      £2       £2       £2  


of income until either the normal single or married personal allowance remains. The latter is
reduced by 10p of tax for every £2 of excess income. Only the husband's income is taken into account.
(Income for these purposes is computed after deducting payments of Gift Aid and pension contribution
relief). 

                                   2008/09  2007/08  2006/07  2005/06  2004/05  2003/04  
                                       £        £        £        £        £        £   

												  
Rent A Room Scheme
Where a room in the tax-payer's 
house is rented.
Annual Exemption                     4,250    4,250    4,250    4,250    4,250    4,250            

Foster Carers
Two methods of computing 
taxable profits:
1) Gross receipts less threshold limit; or
2) Regular Self-Employed Accounts.
                                                         
The threshold is                                                                10,000
plus for each child under 11                                                       200
plus for each child 11 or over                                                     250

Homeworking
Tax free reimbursement of incidental
household costs incurred from working
at home, per week                                2       2       2        2

 
Individual Savings Accounts
Maximum annual subscription
to a cash ISA from 6 April 2008     3,600
plus into stocks and shares         7,200
but with an overall maximum
investment into both of             7,200                          

                                  2009/10   2008/09   2007/08   2006/07   2005/06   2004/05   2003/04 
                                      £         £         £         £         £         £         £
												  
Taxable income after allowances:
												  
Starting Rate Band       10%          -         -       2,230     2,150     2,090     2,020     1,960
  Savings Rate           105        2,320      2,320

Basic Rate Band:
  Non-Savings Rate       20%       43,000     34,400
  Non-Savings Rate       22%                           32,370    31,150    30,310    28,540    29,380 
  Savings Rate           20%                           32,370    31,150    30,310    29,830    29,380 
  UK Dividend Rate       10%                           32,370    31,150    30,310    29,830    30,310    

Higher Rate:
  Excluding UK Dividends 40% on >  43,000+   34,400+   34,600+   33,300+   32,400+   31,400+   30,500+
  UK Dividend Rate       32.5%                         34,600+   33,300+   32,400+   31,400+   30,500+ 
Trusts and Estates    
  Basic Rate on first £500 of income
  Tax rate excluding UK Dividends                        40%       40%       4
0%                                        
  UK Dividend Rate                                      32.5%     32.5%     32.5%   
 
                                             2008/09  2007/08   2006/07   2005/06   2004/05   2003/04
										  
Construction Industry Tax 
Deduction Rate                                                    18%       18%       18%       18%
For subcontractors registered with
HM Revenue & Customs                          20%       20%
All others                                     30%       30%

        
The basis by which permissible deductions from income for tax purposes is determined
changed after 5 April 2006. 
From the start of 2006/07, thee are:         2008/09       2007/08        2006/07
                                                £             £              £
Annual allowance                             235,000       225,000        215,000
Lifetime Allowance                         1,650,000     1,600,000      1,500,000

Prior to that, the maximum sums deductible from income for income tax purposes changes
were limited to the percentages shown below, multiplied by the total of net relevant
earnings. Relevant earnings exclude unearned income and capital gains. 					 
 												  
Age at start of the tax year:                 Personal                Retirement 
                                              Pensions                Annuities												  
35 or less                                       17.5%                   17.5%
36 - 45                                          20%                     17.5%   
46 - 50                                          25%                     17.5%        
51 - 55                                          30%                     20%      
56 - 60                                          35%                     22.5%      
61 and Over                                      40%                     27.5% 

Earnings Limit (CAP)
                                                 £                       £
2005/06                                       105,600                  No Limit
2004/05                                       102,000                  No Limit
2003-04                                        99.000                  No Limit
2002-03                                        97,200                  No Limit 
2001-02                                        95,400                  No Limit
2000-01                                        91,800                  No Limit


 Note: The PP Cap applies also to occupational and stakeholder pensions.                 

	 
Employees using their own Cars for Business are entitled to an allowance based upon their business miles.
The rates are as follows 
	  
                                   2008/09     2007/08    2006/07   2005/06   2004/05   2003/04
First 10,000 miles, per mile:         40p         40p        40p       40p      40p       40p                                                                       
Over  10,000 miles, per mile          25p         25p        25p       25p      25p       25p
                            

All Mileages:
Motor Cycles                          24p         24p        24p       24p      24p       24p
Bicycles                              20p         20p        20p       20p      20p       20p
           
Tax Free levels for reimbursements of fuel provided by employees when using company cars:

                                    from       from                                             
                                   1/1/08     1/7/06     2006/07  2005/06  2004/05 
                                  Per Mile   Per Mile  Per Mile  Per Mile Per Mile
1400 cc or less                      11p        13p        10p       10p      10p
1401 - 2000 cc                       13p        13p        12p       12p      12p
Over 2000 cc                         19p        18p        14p       14p      14p
Diesel
up to 2000 cc                        11p        10p         9p        9p       9p
over 2000 cc                         14p        14p        12p       12p      12p 
Gas (LPG)
1400 cc or less                       7p         7p         6p        6p       6p
1401 - 2000 cc                        8p         8p         7p        7p       7p
over 2000 cc                         11p        11p         9p        9p       9p 
  

Benefits in kind are benefits received by employees other than in cash. These can include
health scheme premiums, the provision of holidays, entertainment etc but the most common
are the benefits derived from company motor cars. There are two such benefits: Scale 
Benefit for the private use of a car and fuel benefit where fuel is provided other than
for business use. 
    

New System from 6 April 2002

From 6 April 2002 the system to compute Car Scale Benefits is one based on the Carbon Dioxide
emissions of each vehicle. The emissions are measured in grams per kilometre. The exact
figure will be rounded down for tax purposes.

The following table shows a range of values set for the three years 2002/2003 to 2004/2005
and the corresponding percentage which will be applied to the car's price to produce the
taxable benefit.

Under an agreement with the Inland Revenue, the Society of Motor Manufacturers and Traders
is providing a CO2 emissions enquiry service over the Internet, for cars registered from 
January 1998 at: 

More recently, the Vehicle Certification Agency established a website detailing, car
fuel consumption and emission figures at:

9%

Van Benefit (per vehicle)


                                  2008/09   2007/08  2006/07  2005/06  2004/05  2003/04

                                      £         £        £        £        £        £ 
                                   3,000     3,000
Vehicles under 4 years old                             500      500      500      500   
Vehicles 4 years and over                              350      350      350      350   

From 5/4/05 no charge will apply to
employees who have to take their
vans home and there is 
insignificant private use. 

If in addition the employer pays
for 'private fuel', there is
a fuel charge of:                    *        500      500      500      500      500

* From 2008/09 Van fuel benefit will be calculated as for motor cars.

From 5 April 2003 (2003/04 onward), Car Fuel Benefit is calculated by reference to a constant
(defined by the government) and the percentage appropriate for a given vehicle, from the Car 
Scale Table above.

The Constant from 6 April 2008 is £16,900. From 5 April 2003 it has been £14,400. A petrol 
powered Rover 45 1997cc has a CO2 emission value of 224. This equates to 29% for 2003-04.
For 2003/04, the Car Fuel benefit for such a car will be £14,400 X 29 /100 = 4,176.

 
      

                                                            To                 From
	                                                   5 April 2003         6 April 2003
                                                             £                   £ 																		  
Tax Free long service awards (for each year of service)     20                   50
Annual maximum tax free for 'staff parties' per head        75                  150
Tax free limits of the value of non-cash gifts from
    third parties.                                         150                  250

As an incentive to encourage participation to cycle to
    work days, employers may provide meals or 
    refreshments                                  (Max 6 meals per year)    unlimited

Years Commencing 1 April             2009     2008     2007     2006     2005     2004     2003
                                       %        %        %        %        %        %        %
Effective rates are:
On first £   10,000                                             0 (3)    0        0        0
On next  £   40,000                                             23.75    23.75    23.75    22.50
On next  £  250,000                                             19       19       19       19
On next  £1,200,000                                             32.75%   32.75%   32.75%   32.75%
On first £  300,000                   22      21       20     
On next  £1,500,000                   28      28       30       30       30       30       30
Marginal Relief fraction
  on £ 10,000 -    50,000                              N/A     19/400   19/400   19/400   19/400
  on £300,000 - 1,500,000            3/200   7/400    1/40     11/400   11/400   11/400   11/400

Note (1) The rate thresholds are divided by the number of associated companies
         (where there are any).
     (2) Neither the 0%,
19%, 20%, 21% and 22% rates apply to close Investment Holding Companies.
     (3) profits from which dividends were paid to non-corporate shareholders, bore 19%
         Corporation Tax.

From 2008/09 there was a major reform of UK Capital Gains Tax. For the first time for many years, the tax 
on gains is not to be levied at the top tax rate based upon an individual's overall income for a year. Instead
a flat rate of 18% is introduced. Unfortunately it appears that this was poorly thought through by the
government as there were changes following the initial announcement. The basic premise is that from 6 April 2008,
taper relief is swept away for both business and non-business assets as is the benefit of any indexation relief
that had accrued up to 5 April 1998. In their place is the new flat rate.

However under pressure, the Chancellor introduced a 'Entrepreneurs Relief'. This is a £1,000,000 lifetime tranche
of relief available to persons selling a business, persons selling assets that were used in a business following
its cessation and to certain individuals who were involved in the running of a business. The tranche of up to
£1,000,000 will be taxed at 10%. Gains over that will be taxed at 18%. More details may appear during the 2008 
Spring Budget. 

                                   2008/09   2007/08   2006/07  2005/06  2004/05  2003/04  2002/03
                                      £         £         £        £        £        £        £    

Annual Exemption:
  -  Individual                     9,600     9,200     8,800    8,500    8,200    7,900    7,700
  -  Most Trusts                    4,800     4,600     4,400    4,250    4,100    3,950    3,850
    
Proceeds of Chattels Exemption:     6,000     6,000     6,000    6,000    6,000    6,000    6,000
    
Retirement Relief on first            -         -         -        -        -        -     50,000
  -  50% on gains up to               -         -         -        -        -        -    200,000
 
                              (Retirement relief was phased out starting from 6 April 1999)

Entrepreneurs Relief
From 6 April 2008 gains arising from the disposal of all or part of a business or from the disposal of
assets following the cessation of a business by certain individuals involved in the running of the 
business will be eligible for this relief.

Conditions
The relief will also be applicable to the disposal of shares and securities in a trading company or the
holding company of a trading group, provided the individual making the disposal has been an officer or
employee of the company or of a company in the same group of companies and owns at least 5% of the 
ordinary share capital of the company and the holding enables the individual to exercise at least 5% of
the voting rights in that company. Property lettings businesses other than furnished holiday lettings 
will not qualify.

Relief
During the taxpayer's lifetime, a maximum of £1,000,000 of gains that qualify for this relief will be
charged to Capital Gains Tax at an effective rate of 10%. Any qualifying gains exceeding £1,000,000 will
be charged at 18%

Before 6 April 2008
Until 5 April 2008, the resultant gain is added to the other income and taxed at the top rate of income
or corporation tax as is appropriate. However if, from 1999/2000, an individuals gains, when added to
total income, do not bring it into the 40% rate band, they are taxed at 20%. From 2000/2001 gains are
taxed at the rates of 10%, 20% or 40% for gains (when added to other income) falling within the three 
income tax bands of income and gains.                                       

(This relief was terminated after 5 April 2008).

Tapering Relief replaced Indexation Relief from 5 April 1998. The longer an asset is
held (with a maximum of 10 years for non-business assets), the more any gain is tapered.
However for business assets, the maximum relief is 75% of the gain:

Table 1 - after  2 complete years for disposals after 5 April 2002.
Table 2 - after  4 complete years for disposals after 5 April 2000 but before 6 April 2002. 
Table 3 - after 10 complete years for disposals after 5 April 1998 but before 6 April 2000.
For non-business assets, the maximum relief is 40% of the gain.

From 6 April 2004, the definition of business assets for taper relief purposes has been
relaxed. An asset that is owned by an individual or trustees and used wholly or partly for
the purposes of a trade carried on by any individual, partnership or trustee will qualify
as a business asset.

 TABLE 1
               Number of complete      Percentage of         Equivalent
              years after 5/4/2002    gain chargeable       Higher Rate
               for which the asset      on Business             CGT 
                    is held:              Assets               Payer 
                                            %                    % 
                    0  -  1                100                  40  
                    1  -  2                 50                  20   
                    Over 2                  25                  10   


 TABLE 2

               Number of complete      Percentage of         Equivalent
              years after 5/4/2000    gain chargeable       Higher Rate
               but before 6/4/2002      on Business             CGT 
               for which the asset        Assets               Payer
                    is held:      
                                            %                    % 
                    0  -  1                100                  40  
                    1  -  2                 87.5                35   
                    2  -  3                 75                  30  
                    3  -  4                 50                  20   
                    Over 4                  25                  10 


 TABLE 3

Number of complete      Percentage of        Percentage of          Equivalent
years after 5/4/98     gain chargeable      gain chargeable  Higher Rate / Basic Rate
but before 6/4/2000      on Business        on Non-Business            tax 
for which the asset        Assets              Assets         Business   Non-Business      
is held:    
 
0                           100                  100         40 / 23.00   40 / 23.00
1                            92.5                100         37 / 21.27   40 / 23.00
2                            85                  100         34 / 19.55   40 / 23.00
3                            77.5                 95         31 / 17.82   38 / 21.85
4                            70                   90         28 / 16.10   36 / 20.70
5                            62.5                 85         25 / 14.37   34 / 19.55
6                            55                   80         22 / 12.65   32 / 18.40
7                            47.5                 75         19 / 10.92   30 / 17.25
8                            40                   70         16 /  9.20   28 / 16.10
9                            32.5                 65         13 /  7.47   26 / 14.95
10 or more                   25                   60         10 /  5.75   24 / 13.80

Notes:

• Tapering is applied to the chargeable amount, not the gain. This means that available reliefs, such as any
  available retirement relief, are deducted first. Then losses. But NOT the annual exemption.
• Pooling for shares ceases for acquisitions after 5 April 1998 for Income Tax but not Corporation Tax
• Assets held at 17 March 1998 are deemed to have been held an additional year
• Tapering only applies to whole years, counted from the date of acquisition
• There has to be a minimum 30 day gap between selling and re-purchasing shares of the same company
  in a 'bed and breakfast' operation.
  

                                  2010/11   2009/10  2008/09   2007/08   2006/07   2005/06  2004/05    
                                     £         £        £         £         £         £        £                 
												  												 
Tax on first at 0% (see note      350,000   325,000  312,000  300,000   285,000   275,000   263,000  
        below)
Remainder at 40%                   
Chargeable Lifetime Transfers 20%                                       285,000   275,000  263,000 
Annual Exemption                    3,000     3,000    3,000    3,000     3,000     3,000    3,000 
Small Gifts Exemption - Donee         250       250      250      250       250       250      250

Simplified reporting rules
 threshold                                                     240,000   220,000  210,000  210,000

The estate must not include no gifts with reservation and assets valued 
at not more than £50,000 outside the UK. (IR leaflet IHT12 explains 
conditions)

Lifetime Transfers are potentially
exempt. If donor dies within 7 years
the Value of the transfer is reduced
progressively:
Years before death                   0-3      3-4      4-5      5-6      6-7
Percentage chargeable               100%      80%      60%      40%      20%

Note: Any second death on or after 9 Oct 2007 will attract any NIL rate band remaining after the first
death of a spouse or civil partner.

The more commonly encountered duties
  
Agreements under Seal (excl. Service Agreements)                                              £5 
Bearer Instruments on Issue or First transfers made after 26 Oct 1986                       1.5%
Clearance Services  26/10/86                                                                1.5%
                    if made by a qualified dealer in securities                             1.0%  
Companies Own Shares (on contracts made after 26/10/86)                                     0.5%
Conveyances to Charities or the National Heritage                                            NIL
Conveyances other than Shares Transfers (from 1 December 2003)
       (Consideration Paid)

Zero-Carbon Homes exemption from Stamp Duty from 1/10/07 until 30/09/2002 for 
homes costing less than £500,000.

0

0 - 125,000 (1)

0 - 150,000

0 - 150,000

All at 0%

1

125,000 - 250,000 (1)

150,000 - 250,000

150,000 - 250,000

 250,000 - 500,000

 250,000 - 500,000 

 250,000 - 500,000 

 Over 500,000

 Over 500,000 

  Over 500,000 

Note. Commercial propery will under certain circumstances attract VAT. If so SDLT will be on the combined price.

New Leases (Lease Duty)

(1) Prior to 23 March 2006, the starting threshold was £60,000.

Conveyances other than Shares Transfers (from 28 March 2000)
     where the consideration does not exceed     £60,000  (£150,000 from 1/12/03
                                                            for commercial property)         NIL 
                                              >  £60,001 to £250,000                        1.0%
                                              > £250,001 to £500,000                        3.0%
                                              > £500,000                                    4.0%
     Enterprise areas - from 10 April 2003, transactions in non-residential
            property in enterprise areas valued at less than £15,000                         NIL

Conveyances under the statutory ~rent to mortgage~ scheme in England and Wales, where       
            the final consideration includes a percentage of the market value of the        
            property on redemption, bears duty on the consideration, i.e. market value      
            less discount, which would be due under the statutory right to-buy-scheme.    
            and similarly under the Scottish ~rent to loan~ scheme                          1.0%  

Conveyance or charge not covered elsewhere                                                  1.0%  
Covenants                                                                                     £5 
                                                              
Depository Receipts (Transfers of                                                  
                     shares converted to) - after 26/10/86                                  1.5%
                     if made by qualified dealer in                                         1.0%  
                     securities
Goodwill - on documents executed on or after 23 April 2002                                   NIL                        
Hire Purchase Agreements                                                                      £5
Intellectual Property    (from 28 Mar 2000)                                                  NIL
Houses (see above - Conveyances other than share transfers) 
Leases - Non-Residential Property 

     New basis for computing stamp duty on commercial leases starts from 1 Dec 2003.
            Duty will be calculated at 1% of the Net Present Value (NPV) of the rent
            payable over the term of the lease, with an annual NPV discount rate of
            3.5%. The NPV of a 10 yr lease at £10,000 per annum would be £83,166 and
            the stamp duty therefore £831.60.

     Residential -  £0 - 60,000                                                              NIL
                 - Over £60,000                                                               1%
     Non-Residential (disadvantaged Areas)
                 -  £0 - 150,000                                                             NIL
                 - Over £150,000                                                              1%
     Special Rates for transactions between 9/4/03 and 30/11/03.
                         (download 9/4/03 Newsletter)
                                   
Leases at annual rents:

            7 years or less (Annual Rents under £5000 - £500
                             before 21 Mar 2000                                              NIL
            Indeterminate                                                                    NIL 
            Greater than   7 years to  35 years                                *            2.0% 
            Greater than  35 years to 100 years                                *           12.0% 
            Greater than 100 years                                             *           24.0% 

Leases - (assignments) - as conveyances 
Share Transfers:                                                                       1% rounded
                                                                                        up to the
								                                                                                 next £5   

Short Term Loan Capital (subject to changes at 6/7/86) from 25/3/86                         0.5%
Stock exchange Nominees taxed                                               
Transfers of Stocks, Shares & Marketable Securities                                         
  (from  26 Oct 1986)                                                                       0.5%
U.K. Shares converted to depository receipts                                                1.5%

From an accounting perspective, for VAT purposes, business transactions fall into
five categories: Standard Rated, Zero Rated, Exempt, a special Rate on the supply of
Domestic Electricity and Items Outside the Scope of the Tax (IOTST).


Zero rated items are taxed... at zero rate. A business selling goods or services at
zero-rate can still count its turnover as taxable and claim back any VAT it has paid
upon its purchases but an exempt business cannot. IOTST items do not count at all for
VAT purposes and are not to be included in statistical information.

From                               1/12/96  1/4/98   1/4/99   1/4/2000   1/4/2001  25/4/2002

                                       %        %         %        %         %          %
Standard Rate (since 1/4/91)         17.5     17.5      17.5     17.5      17.5       17.5
Lower Rate attributable to
  specific products/services: 
  Fuel and Power for domestic use                        5        5         5          5
  Installation of energy saving
      materials                                          5        5         5          5
  Installation on home security goods                             5         5          5  
Womens' sanitary products - 
  exempt from 1/1/2001

From                                 1/4/08   1/4/07    1/4/06   25/4/05   1/4/04    10/4/03
                                                £         £         £         £         £

Registration Threshold (Turnover)    67,000    64,000    61,000    60,000    58,000    56,000
Deregistration Threshold (Turnover)  65,000    62,000    59,000    58,000    58,000    54,000
Flat Rate Scheme (Turnover)
     (from 25/4/02)                           150,000   150,000   150,000   150,000   150,000
Total Annual Turnover Threshold               187,500   187,500   187,500   187,500   187,500
Cash Accounting - (Up to)           600,000   600,000   600,000   600,000   600,000   600,000
Annual Accounting
Entry threshold                     300,000   300,000   600,000   600,000   600,000   600,000
Exit threshold                    1,600,000 1,600,000  1,600.00   825,000
   entry from 12/4/03)                                                                150,000

                                 

From 1 July 2008:
1.  The de minimis for making corrections informally on a VAT Return is increased to £10,000 from 
    £2,000
2.  Errors of £10,000 to  50,000 require separate disclosure if the net error exceeds 1% of tunover
    (box 6 of the Return.
3.  Above £50,000 all errors must be disclosed separately.

These changes also apply to Insurance Premium Tax, Air Passenger Duty, Landfill Tax, Climate Change Levy and
Aggregates Levy.

Where fuel is supplied to proprietors and / or their staff for use in cars and the vehicle is used for private purposes, a supply is deemed 
to have been made for VAT purposes. The VAT arising from the deemed supply to added in the VAT Return is determined from a scale charge. 
From 1 May 2008, this is directly related to the vehicles' CO2 emissions. In the table below, where the vehicle's CO2 emissions are not a
multiple of 5, round the figure down to the nearest multiple of 5.

Scale Charges for periods prior to 1 May 2007:

                                     2001/02  2002/03  2003/04  2004/05  2005/06  2006/07*
Qtly Scale Charges - Petrol             £        £        £         £        £        £  
up to 1,400 cc                        36.04    33.65    35.29     34.55    35.29    40.66
1,401 - 2,000 cc                      45.72    42.59    44.68     43.63    44.68    51.53
Over 2,000 cc                         67.46    62.85    65.82     54.34    65.82    75.66
Qtly Scale Charges - diesel             £        £        £         £        £        £ 
up to 1,400 cc                        33.51    31.57    33.51     32.17    33.51    38.72
1,401 - 2,000 cc                      33.51    31.57    33.51     32.17    33.51    38.72
Over 2,000 cc                         42.59    39.91    42.14     40.65    42.14    49.30


* From start of first accounting period beginning after 30 April 2006

From 1 November 2009, Air Passenger Duty is to be replaced by Aviation Duty, that will be charged per
plane rather than per passenger


                                     From                 From
                                   Feb 2008           1 April 2001
                                       £                    £										  
Duty on economy flights within										  
the European Economic Area (EEA)      10                    5

Duty on flights in the Scottish
Highlands and Islands                 NIL                  NIL

Return flights within the UK
no longer exempt.

Business and first class flights
to Europe                             20                   10                 

Economy class long haul flights       40                   20

Business class long haul flights      80                   40

Pay Rate     Weekly                             Employee     Employer  
                £                          Regular   Reduced   Rates
					        
Below         90.00                          Nil       Nil      Nil
Up to        105.00                          Nil       Nil      Nil
Over         105.00                          11%      4.85%     12.8%
Over         770.00                           1%      1.00%     12.8%           
 

Pay Rate     Weekly                             Employee     Employer  
                £                          Regular   Reduced   Rates
					        
Below         87.00                          Nil       Nil      Nil
Up to        100.00                          Nil       Nil      Nil
Over         100.00                          11%      4.85%     12.8%
Over         670.00                           1%      1.00%     12.8%           
 

Pay Rate     Weekly                             Employee     Employer  
                £                          Regular   Reduced   Rates
					        
Below         84.00                          Nil       Nil      Nil
Up to         97.00                          Nil       Nil      Nil
Over          97.00                          11%      4.85%     12.8%
Over         645.00                           1%      1.00%     12.8%           
The Upper Earnings limit £32,760
 

Pay Rate     Weekly                             Employee     Employer  
                £                          Regular   Reduced   Rates
					        
Below         82.00                          Nil       Nil      Nil
Up to         94.00                          Nil       Nil      Nil
Over          94.00                          11%      4.85%     12.8%
Over         630.00                           1%      1.00%     12.8%           
The Upper Earnings limit £32,760
 

Pay Rate     Weekly                             Employee     Employer  
                £                          Regular   Reduced   Rates
					        
Below         79.00                          Nil       Nil      Nil
Up to         91.00                          Nil       Nil      Nil
Over          91.00                          11%      4.85%     12.8%
Over         610.00                           1%      1.00%     12.8%           
The Upper Earnings limit £31,720
 

Pay Rate     Weekly                             Employee     Employer  
                £                          Regular   Reduced   Rates
					        
Below         77.00                          Nil       Nil      Nil
Up to         89.00                          Nil       Nil      Nil
Over          89.00                          11%      4.85%     12.8%
Over         595.00                           1%      1.00%     12.8%           
The Upper Earnings limit £30,940
 

 

                                         Weekly						
                     2008/09   2007/08   2006/07   2005/06   2004/05  2003/04 		
                        £         £         £        £         £          £                 
Contributions          2.30      2.20     2.10      2.10     2.05      2.00  
Small earnings          £         £         £        £         £          £                                 
exception *           4,825      4,635    4,465     4,345    4,215     4,095

(Self-Employed expecting to earn below the exemption level may apply for an
exemption certificate)
     										

                                          Weekly						
                     2008/09    2007/08    2006/07   2005/06   2004/05   2003/04   		
                        £          £          £         £         £         £       
                       8.10       7.80       7.55      7.35      7.15      6.95   											

                                             					
                     2008/09  2007/08   2006/07  2005/06  2004/05  2003/04  		
                         £        £        £        £        £         £
Tranche from           5,435    5,225    5,035    4,895    4,745    4,615  
to (upper profits 
limit)                40,040   34,840    33,540  32,760   31,720   30,940  
at the rate of           8%       8%       8%       8%       8%       7%   
plus above £30,940       1%       1%       1%       1%       1%
                                                                         
with a max. of                                                     

Both Income Tax and Class IA National Insurance are chargeable upon the deemed 
value of fuel (petrol or diesel) provided by an employer to an employee having
the use of a vehicle provided by their employers'. The deemed value is obtained
from a table, scaled by reference to engine size except for those without a 
cylinder capacity.

					
                          2008/09     2007/08     2006/07     2005/06     2004/05    2003/04
                                                                                                                         
                          Take the    Take the    Take the    Take the    Take the    Take the         
                          fuel        fuel        fuel        fuel        fuel        fuel                  
                          emission    emission    emission    emission    emission    emission               
                          percentage  percentage  percentage  percentage  percentage  percentage
                          for the     for the     for the     for the     for the     for the           
                          year end    year end    year end    year and    year and    year and                 
                          multiply    multiply    multiply    multiply    multiply    multiply       
                          it by       it by       it by       it by       it by       it by          
                          £16,900     £14,400.    £14,400.    £14,400.     £14,400.   £14,400.
                                                                

      

Where employees are obliged by their contracts of employment to use their vehicles
foe business, the costs are allowable against the profits of the business. However
if the reimbursements to the employee exceed certain levels the surplus is subject
to both income tax and national insurance.

The method used is to allow a rate per mile for up to 10,000 miles and a different
rate for more than 10,000 miles of business travel. The rates differed for differing
engine sizes. This system was originally termed the 'Fixed Car Profit Scheme' but
more recently and coherently, Authorised Mileage Rates.

For the rates see Income Tax - Mileage Allowances (Authorised Rates)

                             2008/09       2007/08        2006/07       2005/06
                                £             £              £             £
                             Per Week      Per Week       Per Week      Per Week
Retirement Pension:
Standard State Pension         90.70         87.30         84.25         82.05 
State Pension based on 
 Husband's Contributions       54.35         52.30         50.50         49.15 
For a spouse or other 
 adult dependant               54.35         52.30         50.50         49.15 
Child Benefit (1st)            18.80         18.10         17.45         17.00 
              (subs chdn)      12.55         12.10         11.70         11.40
Bereavement Benefit            90.70         87.30         84.25         82.05
Widows Benefit                 90.70         87.50         84.25         82.05

Attendance Allowance
 Higher Rate                                               64.50         60.60
 Lower Rate                                                43.50         40.55

Pension Credit
 Guarantees those over 60
 an income of at least:
  for a singleton             124.05        119.05        114.05        109.45
  those with a partner        189.35        181.70        174.05        167.05



The full range of benefits is both wide and the variations, complex. For full details click on 
the URL below to directly access a full list on the Benefits Agency section of the Department of
Social Security.

Under the UK direct taxation system, depreciation on business assets cannot be written off
against profits at the whim of the business' owner. Instead any such deductions must be 
added back and deductions calculated according to rules laid down by law may be
substituted. These deductions are referred to as Capital Allowances.

The Principal Capital Allowances are:
                                   %  
Agricultural Buildings               4  on cost (subject to change arising from the 2007 Budget)

Enterprise Zone Buildings         100  initial allowance
                                   25  writing down allowance on reducing balance
Motor Vehicles                     25  up to 1/4/08 (CT) and 6/4/08 (IT)
                                       on the reducing balance with a maximum of £3,000
                                   10 (From 1 April 2008 (CT) 6 April 2008 (IT) business cars 
                                       with a CO2 emission above 160g/km)
                                   20  the reminder
                                  100  first year allowance on low emission vehicles (
                                       no more than 110g/km) extended to 31 March 2013.

Industrial Buildings                4  on cost (to be phased out over 4 years until 2010/11)

Certain fixtures integral with
Industrial Buildings will only 
be eligible to                     10% from 2008/09.

Long Life Assets, those with a
useful economic life of at least
25 years will be                    10% from 6 April 2008 (previously 6%)


Plant and Machinery (expected      20  on the reducing balance from 2008/09 (25% prior to that.
   life less than 25 years)        New from 2008-09, an Annual Allowance on first£50,000 of
                                   expenditure on Plant & Machinery is available
                                   is available to small businesses.

                                   prior to that:
                                   50  first year allowance for small businesses
                                   40  for larger enterprises. 
Plant and Machinery to reduce
   water use and improve          100  first year allowance. The Water Technology List
   water quality                       gives details of qualifying technologies and products

Plant and Machinery (expected       8  on the reducing balance but raised to 10%
   life of 25 years or more)           from 2008-09

Patents Rights and 'Know How'      25  writing down allowance on reducing balance


Scientific Research               100

Research and Development Tax
  Credit                          150  For small and medium sized businesses from 1/4/2000 
                                           (restrictions)

             Youth Rate	  Adult Rate   16-17
             (18 - 21)	                 olds
               £       £     £

From         Per Hour     Per Hour    Per Hour
1/10/2004      4.10         4.85
1/10/2005      4.25         5.05
1/10/2006      4.45         5.35        3.30
1/10/2007      4.60         5.52        3.40
1/10/2008      4.77         5.73        3.53 
                                              
                    Accommodation Offset

Employers who provide accommodation as part of the job are permitted to offset 
a maximum of £3.75 per day (£26.25 per week) against the National Minimum wage
calculation.

16 and 17 year old youths must be paid not less than £3.00 per hour (£3.30 from
1/10/2006).

               For Late      For Late     For Late    For Late
               Payment       Payment      Payment     Payment         
               Income Tax,   Corporation                                 Beneficial 
               NIC,          Tax Pay &    CT Self     Inheritance        Loan Rate
 From          CGT           File         Assessment  Tax
                 %            %            %           %                     %
6/04/00         8.50         6.75         8.50        5.00      1999/00     6.25
6/05/01         7.50         6.00         7.50        4.00      2000/01     6.25
6/11/01         6.50         5.00         6.50        3.00      2001/02     5.94
6/08/03         5.50         4.25         5.50        2.00      2002/03     5.00
6/12/03         6.50         5.00         6.50        3.00      2003/04     5.00
6/09/04         7.50         6.00         7.50        4.00      2004/05     5.00
6/09/05         6.50         5.25         6.50        3.00      2005/06     5.00
6/09/06         7.50         6.00         7.50        4.00      2006/07     5.00
6/04/07         7.50         6.00         7.50        4.00      2007/08     6.25
6/08/07         8.50         6.75         8.50        5.00      2008/09     6.25
6/01/08         7.50         6.00         7.50        4.00

       
               Income Tax,   Corporation                                 
               NIC,          Tax Pay &    CT Self     Inheritance 
 From          CGT           File         Assessment  Tax
                 %            %            %           %
6/04/00         4.00         3.50         5.00        5.00
6/05/01         3.50         2.75         4.00        4.00 
6/11/01         2.50         2.00         3.00        3.00
6/08/03         1.75         1.25         2.00        2.00
6/12/03         2.25         2.00         3.00        3.00
6/09/04         3.00         2.75         4.00        4.00
6/09/05         2.25         2.00         3.00        3.00
6/09/06         3.00         2.75         4.00        4.00

                           From 13 
                         March 2008
                          12 months
Motor Cycles TC17          £
(not over 450 kg unladen)
        not over 150cc     15,00
          151 to 400cc     33.00
          401 to 600cc     48.00
            Over 600cc     66.00                             

Tricycles TC50
(not over 450kg unladen)
         not over 150cc    15.00
         All others        66.00               

  
Private Vehicles (Registered on or after 1 March 2001
TC48, 49 and 59                       
                   2008/09 (1)                 2009/10                  2010/11

                         12 Months                  12 Months
Bands   CO2 Emission      Standard   CO2 Emission    Standard   first year    Standard
          in g/km           Rate       in g/km         Rate        Rate         Rate (4)  
                           £                     £      £       £
 A       up to 100          0.00      up to 100        0.00         0.00         0.00
 B      101 to 120         35.00     101 to 110       20.00         0.00        20.00
 C      121 to 150        120.00     111 to 120       30.00         0.00        35.00
 D      151 to 165        145.00     121 to 130       90.00         0.00        95.00
 E      166 to 185        170.00     131 to 140      110.00       115.00       115.00
 F        Over 185 (2)    210.00     141 to 150      120.00       125.00       125.00
 G        Over 226 (3)    400.00     151 to 160      150.00       155.00       155.00
 H                                   161 to 170      175.00       250.00       180.00
 I                                   171 to 180      205.00       300.00       210.00 
 J                                   181 to 200      260.00       425.00       270.00
 K                                   201 to 225      300.00       550.00       310.00
 L                                   226 to 255      415.00       750.00       430.00
 M                                     Over 255      440.00       950.00       455.00

Notes ()
(1) 2008/09 takes effect from 13 March 2008
(2) Cars registered before 23 March 2006
(3) Cars registered on or after 23 March 2006
(4) Alternative fuel car discount 2009/10 £20 bands A-I, £15 bands J-M, 2010-11 £10 
all cars.



Private / Light Goods Vehicles (Goods Vehicles not over 3,500 Kg)
Registered before 1 March 2001


TC11                        From 13 March 2008  From March 2007
                             12 Months rate      12 Months rate
                                    £              £        
Not over 1549cc                   120.00             115.00       
Over 1549cc                       185.00             180.00


Light Goods Vehicles (vehicles not over 3,500Kg) and 
registered on or after 1 March 2001

TC39                        From 13 March 2008  From March 2007
                              12 months rate    12 months rate
                                  &#163            £
                                 180.00            150.00 

Euro 4 Light Goods Vehicles (vehicles not over 3,500kg)
Vehicles registered between 1 March 2003 and 31 Dec 2006

TC36                        From 13 March 2008  From March 2007
                              12 months rate    12 months rate
                                  &#163            £
                                 120.00            115.00

Further Details of these and other vehicles can be found on the
DVLC website at:

                  http://www.dvla.gov.uk/vehicles/taxation.htm