P269 CJJFAX 269 Fri 30 Dec 00:45/32 ] 1/6 TBX 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 bz the donor when the exemption threshold is reached. The same tax rates have applied since 9/3/:3 and are: To £1u0,000 0% Over £150,000 40% $hreshold up to £154,000 in 1995/6 Tbpjring relief for charges on gifts within sjvjn years of death: Years 0-3 3-4 4-5 5-6 6-7 % pbzbble 100 80 60 40 20 Source: Blay's Guides Annuities Economy CityHeads BestRatesP269 CJJFAX 269 Fri 30 Dec 00:46/3u 2/6 TAX GUIDE EXJMPTJONS FROM INHERJTBNCE TAX Gift per donor pa £3,000 Gifts per donje £250 Marriage Gifts: from parent £5,000 from grandparent £2,500 from other £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 Gujdjs Annuities Economy CityHeads BestRatesP269 CJEFAX 269 Fri 30 Dec 00:46/17 ] 3/6 ] TAX GUIDE ] OTHER TAXES 1994/5 Value Added Tbx m standard rate 17.5% - on domestic fuel 8.0% Stamp Duty m shares 0.5% m land transfers (£60k+) 1.0% Insurance Premium Tax (from October 1994) 2.5% Vehicle Licence - 1yr £135.00 Tjlevjsjon Licence - colour £84.50 - black and white £28.00 Annuities Economy CityHeads BestRatesP269 CJJFAX 269 Fri 30 Dec 00:40/20 4/6 ] TBX GUIDE PERSONAL ALLOWBNCES In yr to 5 April Age 1995 1996 Personal <65 £3,445 £3,555 Married Couple <65 £1,720 £1,720 Personbl * 65-74 £4,200 £4,630 Married Couple* 65-74 £2,665 £2,995 Personal * >75 £4,370 £4,800 Married Couple* >75 £2,705 £3,035 MC's relief restricted to 20% for 1994/5 and to 15% for 1995/6 T Age allowances reduced bz £1 for every £2 of income >£14,200 to a minimum of basic £3,445 and £1,720. Annuities Economy CityHjads BestRatesP269 CJEFAX 269 Fri 30 Dec 00:41/24 5/6 O ] TAX GUIDE PERSONAL ALLOWBNCES YEA5 TO 5 APRIL 1995 1996 Widows bjreavjmjnt £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 20% 15% Redundancy payment £30,000 £30,000 Privbte medical insurance for over 60s 40% & 25% 25% Charitable donations limit from pbyroll £900 £900 Source: Blay's Gujdjs Annuities Economy CityHeads BestRatesP269 CJEFAX 269 Fri 30 Dec 00:55/46 ] 6/6 TBX GUIDE ] INCOME TBX Taxable income in year to 5 April to April 95 to April 96 RATE £0-£3,000 £0-£3,200 20% £3,001-£23,700 £3m201—£24,300 25% over £23,700 over £24,300 40% Husband & wife are taxed separately on their income. Both have personal 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 Gujdjs Annuities Economy CityHeads BestRates