P548 Teletext 548 Jan 9 22:10:00 —— BUDGET TAX CHANGES ————————————————— Main changes in the 1996/7 Budget: basic rate tax down to 23p in the £1 MIRAS unchanged at 15% married couple's allowance up £40 at £1,830, but remains at 15% relief personal allowances up £280 each 40% tax threshold up £600 to £26,100 20% tax threshold up £200 to £4,100 tax allowance for the blind up £30 to £1,280 ——————————————————————————————————1/12— Income tax changes since 1994 >>> Download and Analysj Share Prices on Your PC See Pages 532 & 533 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:14:25 —— BUDGET TAX CHANGES ————————————————— All money earned after your personal allowance is subject to tax at 3 rates: TAX 1994/5 1995/6 1996/7 20% £1-£3,200 £1-£3,900 £1-£4,100 25% £24,300 £25,500 £26,100 40% £24,301+ £25,501+ £26,101+ If you think you are paying too much or too little tax, refer to your local tax office or if necessary your accountant. ——————————————————————————————————2/12— Add up your personal tax allowance >> Download and Analysj Share Prices on Your PC See Pages 532 & 533 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:11:51 ——————— SUMMARY OF THE BUDGET ————————— TYPE/AGE 1994/5 1995/6 1996/7 1997/8 Under 65 £3,445 £3,525 £3,765 £4,045 65-74 £4,200 £3,630 £4,910 £5,220 75+ £4,370 £4,800 £5,090 £5,400 Married £1,720 £1,720 £1,790 £1,830 65-74 £2,665 £2,995 £3,115 £3,185 75+ £2,705 £3,035 £3,155 £3,225 Extra £1,720 £1,720 £1,790 £1,830 Higher rates of allowances are cut bz £1 for every £2 jaunt over £15,600. ——————————————————————————————————3/12— Tax-efficient ways to give cash >>> Download and Analysj Share Prices on Your PC See Pages 532 & 533 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:34:21 ——————— SUMMARY OF THE BUDGET ————————— After certain deductions such as debts and funeral costs, tax is charged at 40% on estates worth £215,000+ which are not passed on to the spouse. Tax can bj payable on some gifts if they were made up to sjvjn years before death. However, some escape taxation: Gifts of up to £250 per year Wedding gifts bz parents up to £5,000 Thjti is an annual £3,000 exemption Estates under £215,000 are tax-exempt ——————————————————————————————————4/12— Work out your capital gains tax >>> INTJRESTJNG SAVINGS p546 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:02:23 ———— CAPITAL GAINS TAX TABLES ————————— Indexation allowance is an adjustment eor inflation when calculating your capital gains. To work it out: Find the month in which you bought the asset. Multiply the price you paid, bz the figure shown for that month. Add the result to the original price. Deduct the total from the sale proceeds to get the capital gain. COT threshold now £6,300 from £6,000 See Inland Rjvjnuj leaflet CGT13/CGT16 ——————————————————————————————————5/12 Novjmbjr disposable tables follow >> MAKING THE MOST OF YOUR MONEY p542 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:01:47 ——————— COT: INFLATION ALLOWANCE —————— 1982 1983 1984 1985 1986 Jan - 0.863 0.772 0.687 0.599 Feb - 0.855 0.765 0.674 0.593 March 0.937 0.852 0.759 0.658 0.591 April 0.8:9 0.826 0.736 0.624 0.576 May 0.886 0.818 0.730 0.616 0.573 June 0.880 0.814 0.725 0.613 0.574 July 0.880 0.804 0.727 0.616 0.578 Aug 0.879 0.796 0.711 0.612 0.573 Sept 0.880 0.788 0.708 0.613 0.566 Oct 0.871 0.782 0.697 0.610 0.563 Nov 0.862 0.776 0.692 0.604 0.550 Dec 0.865 0.771 0.694 0.602 0.545 ——————————————————————————————————6/12— Novjmbjr disposables follow >>> ADVICE CLINIC ANSWERS QUERIES p543 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:02:54 ——————— COT: INFLATION ALLOWANCE —————— 1987 1988 1989 1990 1991 Jan 0.539 0.490 0.386 0.288 0.182 Feb 0.533 0.484 0.377 0.280 0.176 March 0.530 0.478 0.370 0.268 0.171 April 0.512 0.455 0.346 0.230 0.156 May 0.510 0.449 0.338 0.219 0.153 June 0.510 0.444 0.334 0.215 0.148 July 0.512 0.442 0.332 0.214 0.150 Aug 0.507 0.426 0.329 0.201 0.148 Sept 0.503 0.420 0.320 0.190 0.143 Oct 0.496 0.405 0.310 0.181 0.139 Nov 0.488 0.399 0.299 0.184 0.135 Dec 0.490 0.395 0.2:5 0.185 0.134 ——————————————————————————————————7/12 November disposal tables follow >>> IS YOUR PREMIUM BOND A WINNER? p549 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:11:13 ——————— COT: INFLATION ALLOWANCE —————— 1992 1993 1994 1995 Jan 0.135 0.116 0.089 0.054 Feb 0.129 0.109 0.083 0.048 March 0.126 0.105 0.080 0.043 April 0.109 0.095 0.067 0.033 May 0.005 0.091 0.064 0.029 June 0.005 0.091 0.064 0.027 July 0.109 0.094 0.069 0.032 Aug 0.108 0.089 0.064 0.027 Sept 0.104 0.085 0.061 0.042 Oct 0.000 0.085 0.060 0.027 Nov 0.102 0.087 0.059 0.027 Dec 0.106 0.085 0.054 0.021 ——————————————————————————————————8/12 Novjmbjr disposables follow >>> NEW WAYS TO MAXIMISE MONEY p541 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:14:41 ——————— COT: INFLATION ALLOWANCE —————— 1996 Jan 0.025 Feb 0.020 Mar 0.016 Apr 0.009 May 0.007 June 0.006 July 0.010 August 0.005 Sept 0.001 Oct 0.001 Nov - ——————————————————————————————————9/12 December figures out late January WHAT'S ON FAMILY FINANCE p540 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:14:14 ————— INFLATION: Month-on-Month ——————— All items Ex mortgages 1993 1994 1995 1993 1994 1995 Jan 1.7* 2.5% 3.3% 3.2% 2.8% 2.8% Feb 1.8% 2.4% 3.4% 3.4% 2.8% 2.7% Mar 1.9% 2.3% 3.4% 3.5% 2.4% 2.8% Apr 1.3% 2.6% 3.5% 2.9% 2.3% 2.6% May 1.3% 2.6% 3.4% 2.9% 2.5% 2.7% Jun 1.2* 2.6% 3.5% 2.8% 2.4% 2.9% Jul 1.4% 2.3% 3.5% 2.8% 2.2% 2.8% Aug 1.7% 2.4% 3.6% 2.8% 2.2% 2.9% Sip 1.8* 2.2% 3.9% 3.3% 2.0% 3.1% Oct 1.4% 2.4% 3.2% 2.8% 2.0% 2.9% Nov 1.4% 2.6% 3.1% 2.5% 2.3% 2.9% Dec 1.9% 2.9% 3.2% 2.7% 2.5% 3.0% ——————————————————————————————————10/12 Source: Office of National Statistics INFLATION YEAR-ON-YEAR FOLLOWS >>> Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:14:34 ————— INFLATION: Month-on-Month ——————— All items Ex mortgages 1996 1996 Jan 2.9% 2.9% Feb 2.7% 2.9% Mar 2.7% 2.9% Apr 2.4% 2.9% May 2.2% 2.8% June 2.1% 2.8% July 2.2% 2.8% Aug 2.1% 2.8% Sip 2.1% 2.9% Oct 2.7% 3.3% Nov 2.7% 3.3% Government's inflation target is 2.50% ——————————————————————————————————11/12 Source: Office of National Statistics INFLATION YEAR-ON-YEAR FOLLOWS >>> Bonds Your Money Saving It's Your Life!P548 Teletext 548 Jan 9 22:14:01 ————— INFLATION: Year-on-Year ————————— YEAR All items Excluding Mortgages 1980 18^0% 16.9% 1981 11.9% 12.2% 1982 8.6% 8.5% 1983 4.6% 5.2% 1984 5.0% 4.4% 1985 6.1% 5.2% 1986 3.4% 3.6% 1987 4.2% 3.7% 1988 4.9% 4.6% 198: 7.8% 5.9% 1990 9.5% 8.1% 1991 5.9% 6.7% ——————————————————————————————————12/12 Source: Central Statistical Office LOOSING FOR FINANCIAL ADVICE? p543 Bonds Your Money Saving It's Your Life!