P269 CEEFAX 269 Fri 6 Jan 21:15/11 1/6 TAX GUIDE INHERITANCE TcX 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 zhj exemption threshold is reached. $hj same tax rates have applied since 9/3/93 and are: To £150,000 0% Over £150,000 40% Threshold up to £154,000 in 1995/6 Tapering relief for charges on gifts within sjvjn years of death: Years 0-3 3-4 4-5 5-6 6-7 % payable 1p0 8p 60 40 20 Source: Blay's Guides Annuities Economy CityHeads BestRateuP269 CEEFAX 269 Fri 6 Jan 21:02/21 2/6 TAX GUIDE EXEMPTIONS FROM INHERITANCE 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 surviving spouse. Source: Blay's Guides Annuities Economy CityHjads BeutRateuP269 CEEFAX 269 Fri 6 Jan 21:04/47 3/6 TAX GUIDE OTHER TAXES 1994/5 Value Added Tbx -astandard rate 17.5% m on domestic fuel 8.0% Stamp Duty -ashares 0.5% m land transfers (£60k+) 1.0% Insurance Premium Tax Xfrom October 1994) 2.5% Vehicle Licence - 1yr £135.00 Television Licence - colour 0 0£84.50 - black and white £28.00 Annuities Economy CityHjads BestRatesP269 CEEFAX 269 Fri 6 Jan 21:06/58 4/6 TAX GUIDE PERSONAL ALLOWANCES In yr to 5 April Age 1995 1996 Personal <65 £3,445 £3,525 Married Couple <65 £1,720 £1,720 Personal * 65-74 £4,200 £4,630 Married Couple* 65-74 £2,665 £2,995 Personal * >75 £4,378 £4,800 Married Couple* >75 £2,705 £3,035 MC's relief restricted to 20% for 1994/5 and to 15% for 1995/6 * Age allowances reduced by £1 for every £2 of income >£14,200 to a minimum of basic £3,445 and £1,720. Annuities Economy CityHjads BestRatesP269 CEEFAX 269 Fri 6 Jan 21:27/54 G TAX GUIDE PERSONAL ALLOWANCES YEAR 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 0 - limit £30,000 £30,000 m rate 20% 15% Redundancy payment £30,000 £30,000 Private medical insurance for over 60s 40% & 25% 25% Charitable donations limit from payroll £900 £900 Source: Blay's Guides Annuities Economy CityHeads BestRatesP269 CEEFAX 269 Fri 6 Jan 21:14/26 6/6 TAX GUIDE INCOME TAX 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 £3,201—£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 Guides Annuities Economy CityHeads BestRates