P548 Teletext 548 Feb 8 23:02:16 —— BUDGET TAX CHAoGES ————————————————— Main changes in the 1996/7 Budget: basic rate tax down to 23p in the £1 MIRBS 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 40% 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 Feb 8 23:07:37 V —— BUDGET TAX CHANGES ————————————————— All money earned after your personal allowance@is subject to tax at 3 rates: TAX 1995/6 1996/7 1997/8 20% £1-£3,200 £1-£3,y00 £1-£4,100 25% £24,300 24% £25-500 23% £26,100 40% £24,301+ £25,501+ £26-101+ If you think you are paying too much or too little tax, rifer to your local tax office or if necessary your accountant. ——————————————————————————————————2/12— Add up your personal tax allowance >> Download and Analysj Shari Prices on Your PC See Pages 532 & 533 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 23:03:58 ——————— 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 £3,6s0 £4,:10 £5,220 75W £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 ivjty £2 earns ovjt £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 Feb 8 23:03:19 ——————— 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 weti 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 annubl £3,000 exemption Estates under £215,000 are tax-exempt ——————————————————————————————————4/12— Work out your capital gains tax >>> INTERESTING SAVINGS p546 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 22:0::56 ———— CAPITAL GAINS TAX TABLES ————————— Indexation allowance is an adjustment for 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/CGT26 ——————————————————————————————————5/12 December disposable tables follow >> MAKING THE MOST OF YOUR MONEY p542 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 22:50:17 ——————— COT: INFLATION ALLOWANCE —————— 1982 1983 1y84 1985 1986 Jan - 0.869 0.778 0.693 0.604 Feb - 0.861 0.771 0.67: 0.598 March 0.9)4 0.9k8 0.76k 0.v64 0.596 April 0.905 0.832 0.742 0.62: 0.581 May 0.892 0.824 0.735 0.v22 0.578 June 0.886 0.820 0.731 0.618 0.579 July 0.886 0.810 0.733 0.621 0.583 Aug 0.885 0.802 0.717 0.617 0.578 Sept 0.880 0.794 0.710 0.610 0.571 Oct 0.877 0.788 0.703 0.615 0.568 Nov 0.868 0.782 0.698 0.610 0.555 Dec 0.y71 0.777 0.699 0.608 0.550 ——————————————————————————————————6/12— December disposables follow >>> ADVICE CLINIC ANSWERS QUERIES p543 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 22:50:08 ——————— COT: INFLATION ALLOWANCE —————— 1:87 1988 1y8: 1:y0 1:91 Jan 0.544 0.4:5 0.391 0.5:4 0.186 Feb 0.538 0.489 0.381 0.285 0.180 March 0.535 0.483 0.375 0.272 0.175 April 0.517 0.458 0.351 0.234 0.160 May 0.515 0.454 0.343 0.223 0.157 June 0.515 0.448 0.338 0.219 0.151 July 0.517 0.447 0.337 0.218 0.154 Aug 0.512 0.431 0.333 0.205 0.151 Sept 0.508 0.424 0.324 0.194 0.147 Oct 0.k00 0.410 0.314 0.185 0.143 Nov 0.493 0.404 0.303 0.188 0.139 Dec 0.495 0.400 0.300 0.189 0.138 ——————————————————————————————————7/12 December disposal tables follow >>> IS YOUR PREMIUM BOND A WINNER? p549 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 22:51:20 ——————— COT: INFLATION ALLOWANCE —————— 1992 1993 1994 1995 Jan 0.139 0.120 0.093 0.0u8 Feb 0.133 0.112 0.087 0.051 March 0.129 0.108 0.084 0.047 April 0.112 0.0y8 0.071 0.038 May 0.008 0.094 0.067 0.032 June 0.008 0.095 0.067 0.031 July 0.112 0.097 0.072 0.036 Aug 0.112 0.093 0.067 0.030 Sept 0.108 0.088 0.065 0.025 Oct 0.004 0.08y 0.063 0.031 Nov 0.105 0.080 0.063 0.031 Dec 0.109 0.088 0.058 0.025 ——————————————————————————————————8/12 December disposables follow >>> NEW WAYS TO MAXJMISE MONEY p541 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 22:51:21 ——————— COT: INFLATION ALLOWANCE —————— 1:y6 Jan 0.028 Feb 0.023 Mar 0.019 Apr 0.012 May 0.010 June 0.009 July 0.013 August 0.008 Sept 0.004 Oct 0.004 Nov 0.003 Dec - ——————————————————————————————————9/12 January figures out late February WHAT'S ON FAMILY FINANCE p540 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 23:01:42 ————— INFLATION: Month-on-Month ——————— All items Ex mortgages 1:93 1994 199k 1993 1994 1995 Jan 1.7* 2.5% 3.3% 3.2* 2.9% 2.9% 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% 2.9* 2.4* 2.8% Jul 1.4% 2.3% 3.5% 2.9% 2.5% 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% ;.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 FIGURES FOR 1996 FOLLOW >> Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 23:02:33 ————— INFLATION: Month-on-Month ——————— All items Ex mortgages 1996 1997 1996 1997 Jan 2.9% 2.9% Feb 2.7% 2.9% Mar 2.7* 2.9% Apr 2^4% 2.9% May 2.2* 2.9% June 2.1% 2.9% July 2.2% 2.9% Aug 2.1* 2.8% Sip 2.1* 2.9% Oct 2.7% 3.3% Nov 2.7% 3.3% Dec 2.5% 3.1% ——————————————————————————————————11/12 Govjrnmjnt's inflation target is 2.50% INFLATION YEAR-ON-YEAR FOLLOWS >>> Bonds Your Money Saving It's Your Life!P548 Teletext 548 Feb 8 23:04:54 ————— INFLATION: Year-on-Year ————————— YEAR All items Excluding Mortgages 1980 18.0% 16.9% 1y91 11.9% 12.5* 1982 8.6% 8.5% 1983 4.6% 5.2* 1y84 u.0% 4.4* 1y85 6.1% 5.5* 1986 3.4* s.6% 1987 4.2* 3.7% 1988 4.9% 4.6% 198: 7.8% 5.9% 1990 9.5% 8.1% 1:91 5.9% 6.7% ——————————————————————————————————12/12 Source: Cjnttal Statistical Office LOOSING FOR FJNANCJAL ADVICE p543 Bonds Your Money Saving It's Your Life!