P269 CJEFAX 269 Fri 6 May 21:08/25 1/6 O TAX GUIDE IL INHERJTBNCE TBX IHT is charged gn certain lifetime gifts, on the wealth of the estate at death and on some trust deals. Tax is paid by the donor when the exemption threshold is reached. $hj same tax rates have applied 5ince 9/3/93 and are: To £159,000 0% a Over £150,000 40) Tapering relief for charges on gifts within sjvjn years of death: Years 0-3 3-4 4-5 5-6 6-7 % pbyable 100 80 60 40 20 Source: Blay's G5ides Annuities Economy CityHjads BestRatjsP269 CEJFAX 269 Fri 6 May 21:10/37 ^ 2/6 TAX GUIDE EXEMPTJOVS FROM INHERITANCE TcX 0 1993/4 1994/5 Gift per dong pa £3,000 £3,X00 Gifts per donje £250 £250 Marriage Gifts: from parent £5,000 £5,000 from grandparent £2,500 £2,500 from other 0 £1,000 £1,X00 Gifts to individuals and certain trusts over 7 years before death. No IHT is payable on transfers to a surviving spouse. Source: Blay'1 Guides Ann iti Econom CityH ads B t tP269 CEEFAX 269 Fri 6 May 21:00/*6 3/6 TAX GUIDE OTHER TAXES 1994/5 Value Added Tax - standard rate 17.5% - on domestic fuel 0 8.0% Stamp Duty - shares 0.5% - land transfers (£60k+) W0% Insurance Premium Ta| hfrom October 1994) 2.5% Vehicle Licence -a12 months R £130.00 Television Licence -acolour 0£84.50 black and white £28.00 Annuities Economy CityHjads BeutRateuP269 CEEFAX 269 Fri 6 May 21:08/24 4/6 TAX GUIDE PERSONAL ALLOWcNCES 0 In yr to 5 April Age 1994 1995 Personal <65 £3,445 £3,445 Married Couple ^65 £1,720 £1,720 Personal * 65-74 £4,200 £4,200 Married Couple* 65-74 £2,465 £2,665 0 Personal * >75 £4,370 £4,370 Married Couple* >75 £2,505 £2,705 MC's relief held at 20% from 6/4/94 * Age allowances reduced by £1 for every £2 of income >£14,200 to a minimum of basic £3,445 and £1,720. Annuiti Econom CityH ad B t tP269 CEEFAX 269 Fri 6 May 21:14/12 G TAX GUIDE PERSONAL ALLOWaNCES YIB$ TO uaAPRJL 1994 p1995 Widows bjreavjmknt £1,720 £1,720 Additional Personal for single parents £1,720 £1,720 Blind person £1,080 £1,280 MIRAS - 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 CityHjads BestRatesP269 CJJFAX 269 Fri 6 May 21:14/14 ] 6/6 T G E INCOME T X Taxable income in y ar to 5 April to April 94 to April 95 R TE £0-£2,s00 £0-£3,800 2 % £2,501-£23,700 £3,001—£23,700 25% over £23,700 over £23,700 40% P Husband & wife are taxed 3jparatel9 on their income. Both have personal and investment allowances. Before 5 April each year married couples can gi6e notice to share the MCA equally or to allocate iu all to one of them. Taxable incom is income less personal allowance . Source: Blay's Guides Annuities Economy Cit Heads BPstRates