P269 CEEFAX 269 Fri 20 May 21:16/59 1/6 TAX GUIDE INHERJTBNCE TBX IHT is charged on 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. The same tax rates havu applied since 9/3/93 and are: To £150,000 0% Over £150,000 40% Tapering relief for charges on gifts within seven years of death: Years 0-3 3-4 4-5 5-6 6-7 % payable 189 88 60 40 28 Source: Blay's Guides Annuities Economy CityHeads BeutRatesP269 CEEFAX 269 Fri 20 May 21:16/55 2/6 n2n1 |/ TAX GUIDE EXEMPTIONS FROM INHERITaVCE 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 indi6jduals and certain trusts over 7 years before death. No IHT is payable on transfers to a surviving spouse. Source: Blay's GuidesP269 CJEFAX 269 Fri 20 May 21:13/02 G TAX GUIDE OTHER TAXES 1994/5 Value Added Tax - standard rate 17.5% - on domestic fuel 8W0% Stamp Duty m shares 0.5% m land transfers (£60k+) 1.0% Insurance Premium Ta| Xfrom October 1994) 2.5% Vehicle Licence - 12 months £130.00 Television Licence - colour £84.50 - black and white £28.00 Annuities Economy CityHjads BestRatjsP269 CEEFAX 269 Fri 20 May 21:07/54 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 BeutRatesP269 CEEFAX 269 Fri 20 May 21:10/14 G TAX GUIDE PERSONAL ALLOWANCES 0 YEAR TO 5aAPRJL 1994 1995 Widows bereavement £1,720 £1,720 Additional Personal for single parents £1,720 £1,720 Blind person £1,080 £1,200 MIRBS m limit £30,000 £30,000 m rate 25% G 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 BestRateuP269 CEEFAX 269 Fri 20 May 21:01/14 6/6 TAX GUIDE INCOME TAX Taxable income in year to 5 April to April 94 to April 95 R TE £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 personal and investment allowances. Before 5 April each jar marri d couples can give notice to share the MCA equally or to allocate it all to one of them. Taxabl incom is income less personal allowances. Source: Blay's Guides Annu ti Economy CPr Heads B Rates