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
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:

31 March 2005

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
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