Tax Facts 2008/9
Income tax rates, reliefs and tax credits
| INCOME TAX RATES | |||
|---|---|---|---|
| 2008/9 | 2007/8 | ||
| Band £ | Rate % | Band £ | Rate % |
| 0 - 2,320 | 10** | 0 - 2,230 | 10 |
| 2,321 - 34,800* | 20*** | 2,231 - 34,600 | 22*** |
| over 34,800* | 40**** | Over 34,600 | 40**** |
* As announced on 13 May 2008 and confirmed in the Finance Act. |
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| INCOME TAX RELIEFS | |||
|---|---|---|---|
| 2008/9 £ |
2007/8 £ |
||
| Personal Allowance | under 65 | 6,035* | 5,225 |
| 65 to 74** | 9,030 | 7,550 | |
| 75 and over** | 9,180 | 7,690 | |
| Married Couples allowance (relief at 10%) | aged less than 75 and born before 6.4.35** |
6,535 | 6,285 |
| 75 and over** | 6,625 | 6,365 | |
| min amount | 2,540 | 2,450 | |
| Age allowance income limit | 21,800 | 20,900 | |
| Blind Persons Allowance | 1,800 | 1,730 | |
* As announced on 13 May 2008 and confirmed in the Finance Act. |
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| TAX CREDITS | ||
|---|---|---|
| 2008/9 £ |
2007/8 £ |
|
Working Tax Credit |
||
Basic element - max |
1,800 | 1,730 |
Childcare element - 80% of eligible costs up to £175 per week (£300 if two or more children) |
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Child Tax Credit (CTC) |
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Child element - per child - max |
2,085 | 1,845 |
Family element |
545 | 545 |
Baby addition |
545 | 545 |
| Reductions in maximum rates 39% (37%) of income above £6,420* (£5,220*) p.a. |
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*If only CTC is claimed, the threshold is £15,575 (£14,495) p.a. The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income. |
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Disclaimer
The information in this document is based upon the Finance Act 2008, which received Royal Assent on 21 July 2008.