| Corporation Taxa
|
Year ended 31 March
|
Main rate (%)
|
Small companies rate (%)b
|
Effective marginal rate (%)
|
Marginal relief fraction
|
|
2000
|
30
|
20
|
32.5
|
1/40
|
|
1999
|
30
|
20
|
33.5
|
1/40
|
|
1998
|
31
|
21
|
33.5
|
1/40
|
a. For the year 31 March 1999, the rate of advance corporation tax (ACT) remains 20/80 (25%). ACT is abolished from April 1999.
b. The threshold for the small companies' rate is £300,000. Marginal relief applies to profits between £300,000 and £1,500,000.
top of page Income Tax Rates
|
1999/2000
|
1998/1999
|
|
Taxable income (£)
|
Rate (%)
|
Cumulative tax (£)
|
Taxable income (£)
|
Rate (%)
|
Cumulative tax (£)
|
|
<= 1,500
|
10
|
150
|
<= 1,500
|
20
|
860
|
|
1,501-28,000
|
23
|
6,245
|
1,501-28,000
|
23
|
6,104
|
|
> 28,000
|
40
|
|
> 28,000
|
40
|
|
top of page Income Tax Allowances
| |
1999/2000 (£)
|
1998/1999 (£)
|
| Individual |
4,335
|
4,195
|
| Individual 65-74 |
5,720
|
5,410
|
| Individual 75 and overa |
5,980
|
5,600
|
| Married coupleb |
1,970
|
1,900
|
| Married couple 65-74a,b |
5,125
|
3,305
|
| Married Couple 75 and overa,b |
5,195
|
3,345
|
a. Reduced by £1 for each additional £2 of income until the basic allowance is reached if income less deductions exceeds £16,200 (£15,600 for 1997/98).
b. Restricted to relief at 15% for 1997/98 and 1998/99. From 6 April 1999, relief is to be restricted to 10% for the married couple's allowance (MCA) with a corresponding increase, above indexation, in age-related MCA.
top of page Table of Income Tax Reliefs
| |
1999/2000
|
1998/1999
|
| Widows bereavement allowance |
£1,970 (relief restricted to 10%)3
|
£1,900 (relief restricted to 15%)3
|
| Additional relief for children |
£1,970 (relief restricted to 10%)3
|
£1,900 (relief restricted to 15%)3
|
| Blind person (each) |
£1,380
|
£1,330
|
3. Relief for 1994-95 onwards is given as a reduction in tax liability calculated as the stated percentage of the amount of the relief. It is proposed that the relief will be restricted to 10% from 6 April 1999.
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