Budget 2006 Introduction Personal Income Tax Tax Credits National Insurance Contributions Employees Savings Trusts Capital Gains Tax Stamp Duty Land Tax Inheritance Tax Corporation Tax Business Tax Value Added Tax Other Measures Tax Tables National Insurance

Tax Tables Table A Allowances and Reliefs   2006/07 2005/06   Allowed at top rate of tax     Personal Allowance £5,035 £4,895 Personal Allowance (65-74)* 7,280 7,090 Personal Allowance (75 and over)* 7,420 7,220 Blind Person's Allowance 1,660 1,610   Allowed only at 10%     Married Couple's Allowance (65-74)+* 6,065 5,905 Married Couple's Allowance (75 and over)+* 6,135 5,975 Income Limit for age-related allowances 20,100 19,500   + 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 £2,350 (2005/06: £2,280).   Bands 2006/07 2005/06 Lower £2,150 £2,090 Basic next 31,150 next 30,310 Higher over 33,300 over 32,400   Rates differ for Dividend, Interest and Other income within each band:   Rates 2006/07 and 2005/06   Lower Basic Higher D I O 10% 10% 10% 10% 20% 22% 32.5% 40% 40%   Table B Pension Contributions   For contributions from 6.4.2006, the old rules and limits have all changed.   The maximum annual tax efficient gross contributions (up to age 75) in 2006/07 are: - individuals:   £3,600 or 100% of earnings to £215k - employers:   £215k less employee contributions Maximum tax-efficient fund (lifetime allowance) where benefits are taken in 2006/07: £1.5m Only current earnings count for the 100% limit in 2006/07. 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 2006/07 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 2006/07 the percentage for a petrol engine remains 15% for ratings up to 140g/km. The percentage increases by 1% for every complete 5g/km in excess of this (ie at 145, 150 etc), to a maximum of 35%. Diesel cars have 3% added to this figure, but still have a maximum percentage of 35%.   Car Fuel Assessment The benefit is calculated using the same percentage as that used for the car benefit, applied to a standard figure of £14,400. The taxable amount is therefore between £2,160 (15% - min.) and £5,040 (35% - max.).