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Home > > 2008/09 Rates and Allowances

2008/09 Rates and Allowances

With changes in the tax system now an ever-present feature, our up-to-date experience is available to ensure clients' tax liabilities are planned to be at a minimum.

This tax year there are the following key changes in the tax rates and tax system:

13 May 2008 Mini Budget

Personal allowance increased by £600 to £6,035. Higher rate taxable band reduced to £34,800 (£36,000 as announced in the March 2008 Budget).

Starting rate band

From 6 April 2008 there is no 10% starting rate band.

Income tax

  • Income tax now 20%

Corporation tax

  • Main rate: 28%
  • Small companies' rate: 21%

Capital gains tax

  • Standard rate: 18%
  • Entrepreneurs' relief on £1 million - effective rate: 10%

Capital allowances

  • New annual investment allowance for first £50,000: 100%

While there is comprehensive information on our site, as our terms and conditions indicate, this information does not cover all situations or provide advice. Do please contact us for advice.