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 | Capital
Gains Tax |
| | | Annual gains
exemption |
2008-09 |
2007-08 |
| Individuals |
£9,600 |
£9,200 |
| Trusts |
£4,800 |
£4,600 |
Gains are charged at 18%, except on gains qualifying for entrepreneurs' relief which has an effective rate of 10% on the first £1m of gains during the tax payers lifetime affecting disposals from 6th April 2008.
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Car Benefits | |
Income Tax is calculated as a charge based on a percentage of the car price graduated according to the level of the carbon dioxide emissions measured in grams per kilometer (g/km) and rounded down to the nearest 5 g/km. The following table indicates how company cars are taxed for 2006-07 |
| CO2 (glkm) | % car price | Diesel |
| Less than 121 |
10% |
Add 3% |
| 135 |
15% |
Add 3% |
| 140 |
16% |
Add 3% |
| 145 |
17% |
Add 3% |
| 150 |
18% |
Add 3% |
| 155 |
19% |
Add 3% |
| 160 |
20% |
Add 3% |
| 165 |
21% |
Add 3% |
| 170 |
22% |
Add 3% |
| 175 |
23% |
Add 3% |
| 180 |
24% |
Add 3% |
| 185 |
25% |
Add 3% |
| 190 |
26% |
Add 3% |
| 195 |
27% |
Add 3% |
| 200 |
28% |
Add 3% |
| 205 |
29% |
Add 3% |
| 210 |
30% |
Add 3% |
| 215 |
31% |
Add 3% |
| 220 |
32% |
Add 3% |
| 225 |
33% |
Add 2% |
| 230 |
34% |
Add 1% |
| 235 |
35% |
Max Charge |
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The benefit is reduced for employee contributions, up to a maximum of £5,000 and where the car is unavailable for part of the year. The same calculation is used to calculate the class 1A National Insurance Contributions payable by employers.
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Car Fuel | |
| The fuel benefit charge is based on the level of CO2 emissions of the car as above, plus 3% supplement for diesels, except cars registered on or before 31st December 2005 and meet Euro IV standards. There are also reductions for alternatively fuelled cars.
To calculate the benefit charge on fuel the percentage figure must be multiplied against a set figure for the year 2008-09 - £16,900 |
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Company Vans | |
For employees provided by an employer with a van of up to 3.5 tonnes gross weight for unrestriced private use, the benefit charge for 2008-09 is £3,000 (2007-08 £3,000) |
| Where an employee merely takes a business van home with no other private use, no benefit will apply.
For shared vans £3,000 is apportioned between those employees who use them for private purposes during the assessment year.
From 2008-09, there is also a van fuel benefit of £500.
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| Corporation
Tax | | | Year ending
|
31st March 2009 |
31st March 2008 |
| Normal Rate |
28% |
30% |
| Small
Companies rate |
21% |
20% |
Where profits*
|
£0-£300k |
£0 - £300k |
Marginal relief where profits* |
£300-£1,500k |
£300k-£1,500k |
Marginal relief fraction |
7/400 |
1/40 |
| Profit
threshold for quarterly instalment payments* |
£1,500k |
£1,500k |
* Reduced by reference to number of associated companies
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| Dividends |
| |
2008-09 |
2007-08 |
| Tax credit allowed on dividends | 10% |
10% |
| Basic Rate and Starting Rate Income Tax payable on dividends | 10%
|
10% |
| (Higher Rate Income Tax
payable where applicable) | 32.5% |
32.5% |
|
NOTE:- The information included in this Tax Planner is based on Clemence Hoar Cummings' understanding of the Finance Bill 2008. However, you should always consult your practice partner before making any decision regarding tax matters.
Registered to carry out audit work by the Institute of Chartered Accountants in England and Wales and authorised and regulated by the Financial Services Authority for Investment business. |
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Registered to carry out audit work by the Institute of Chartered Accountants
in England and Wales and authorised and regulated by the Financial Services Authority for Investment
business.
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