Tax Tables & Allowances

(Source: Inland Revenue)

Tax Rates and Allowances

2007-08 (£) 2008-09 (£) Increase (£)

Income tax allowances

Personal allowance

5,225 5,435 210
Capital gains tax annual exempt amount:
Individuals etc: 9,200
Other trustees: 4,600
Inheritance tax threshold 300,000
Pension schemes earnings cap


Taxable Bands

Taxable bands 2007-08 (£)

Taxable bands 2008-09 (£)

Starting rate 10%

0 - 2,230

Basic rate 22%

2,231 - 34,600 Basic rate 20% £0-£36,000

Higher rate 40%

Over 34,600 Higher rate 40% over 36,000


Corporation Tax Rates

Corporation tax profits 2007-08 (£)

Corporation tax profits 2008-09 (£)

Small companies' rate 20%

0 - 300,000

Small companies' rate 20%

0 -
Marginal relief 300,001 - 1,500,000 Marginal relief
Main rate 30% 1,500,001 or more Main rate 30%


National Insurance Rates

2007-08 2008-09
Primary threshold £100 per week £105 per week
Secondary threshold £100 per week £105 per week
Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit 11% 11%
Employers’ secondary Class 1 rate 12.8% 12.8%
Class 4 rate 8% of £5,225 to £34,840 per year 1% above £34,840 per year 8% of £5,435 to £40,040 per year 1% above £40,040 per year
Class 4 lower profits limit £5,225 per year £5,435 per year
Class 4 upper profits limit £34,840 per year £40,040 per year
  • For a complete list of rates and allowances for 2008-9, visit the Inland Revenue site.