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2005 Budget Summary

31 March 2005
Issue: 4001 / Categories:
A summary of the main direct and indirect tax as announced in the Budget on 16 March 2005

Budget Summary — Table

Note:

It must be remembered that these proposals are subject to amendment during the passage of the Finance Bill.

Personal Taxation

2005/06

2004/05

Personal allowance

  

General

£4,895

£4,745

aged 65 or over in year of assessment

£7,090

£6,830

aged 75 or over in year of assessment

£7,220

£6,950

age allowance income limit

£19,500

£18,900

minimum where income exceeds limit

£4,895

£4,745

Married couple's allowance

  

(10% relief)

  

either spouse born before 6 April 1935

£5,905

£5,725

either spouse aged 75 or over in year of assessment

£5,975

£5,795

age allowance income limit

£19,500

£18,900

minimum where income exceeds limit

£2,280

£2,210

Blind person's allowance

£1,610

£1,560

Income tax rates

  

Starting rate

10%

10%

on taxable income up to

£2,090

£2,020

Basic rate

22%

22%

on taxable income from starting rate limit up to

£32,400

£31,400

Higher rate

40%

40%

on taxable income over

£32,400

£31,400

Lower rate on certain interest income

20%

20%

Lower rate on dividend income

10%

10%

Higher rate on dividend income

32.5%

32.5%

 

Company Taxation

FY2005

FY2004

Corporation tax rates

All companies (except below)

30%

30%

Companies with small profits

19%

19%

19% rate limit

£300,000

£300,000

Issue: 4001 / Categories:
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