P269 CEEFAX 269 Mon 4 Apr 18:19/5v 1/6 TAX GUIDE INHERITANCE TAX IHT is charged on certain lifetime gifts, on the wealth of the estate at death and on some trust djats. Tax is paid bz the donor when the exemption threshold is reached. The same tax rates have applied since 9/3/:3 and are: To £150,000 0% Over £150,p00 40% Tapering relief for charges on gifts within sjvjn years of death: Years 0-3 3-4 4-5 5-6 6-7 % pbzable 100 80 60 40 20 Source: Blay's Guides Annuities Economy CityHeads BestRatesP269 CEEFAX 269 Mon 4 Apr 18:11/12 2/6 TAX GUIDE EXJMPTJONS FROM INHERITANCE TAX 1993/4 1994/5 Gift per donor pa £3,000 £3,000 Gifts per donje £250 £250 Marriage Gifts: from parent £5,000 £5,000 from grandparent £2,500 £2,500 from other £1,000 £1,000 Gifts to individuals and certain trusts over 7 years before death. No IHT is payable on transfers to a survjvjng spouse. Source: Blay's Guides Annuities Economy CityHeads BestRatesP269 CEEFAX 269 Mon 4 Apr 18:11/46 3/6 TAX GUIDE OTHER TAXES 1994/5 Value Added Tax - standard rate 17.5% - on domestic fuel 8.0% Stamp Duty - shares 0.5% Qj - land transfers (£60k+) 1.0% Insurance Premium Tax (from October 1994) 3.0% Vehicle Licence - 12 months £130.00 Television Licence - colour £83.00 - black and white £27.50 Annuities Economy CityHeads BestRatesP269 CEEFAX 269 Mon 4 Apr 18:14/25 4/6 TAX GUIDE PERSONAL ALLOWANCES In yr to 5 April Age 1994 1995 Personal <65 £3,445 £3,445 Married Couple <65 £1,720 £1,720 Personal * 65-74 £4,200 £4,200 Married Couple* 65-74 £2,465 £2,665 Personal * >75 £4,370 £4,370 Married Couple* >75 £2,505 £2,705 MC's relief held at 20% from 6/4/94 * Age allowances reduced bz £1 for every £2 of income >£14,200 to a minimum of basic £3,445 and £1,720. Annuities Economy CityHeads BestRatesP269 CEEFAX 269 Mon 4 Apr 18:14/37 5/6 TAX GUIDE PERSONAL ALLOWANCES YEA5 TO 5 APRIL 1994 1995 Widows bjreavjmjnt £1,720 £1,720 Additional Personal for single parents £1,720 £1,720 Blind person £1,080 £1,200 MIRBS - limit £30,000 £30,000 - rate 25% 20% Redundancy payment £30,000 £30,000 Privbte medical insurance for over 60s 40% & 25% 25% Charitable donations limit from payroll £900 £900 Source: Blay's Guides Annuities Economy CityHeads BestRatesP269 CJEFAX 269 Mon 4 Apr 18:11/22 6/6 TAX GUIDE INCOME TAX Taxable income in year to 5 April to April 94 to April 95 RATE £0-£2,500 £0-£3,000 20% £2,501-£23,700 £3,001—£23,700 25% over £23,700 over £23,700 40% Husband & wife are taxed separately on their income. Both have pjrsonat and investment allowances. Before 5 April each year married couples can give notice to share the MCA equally or to allocate it all to one of them. Taxable income is income less personal allowances. Source: Blay's Guides Annuities Economy CityHeads BestRates