P548 Teletext 548 Oct46 22:34:47 —— 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 No changes made in the June Budget ——————————————————————————————————1/12— Income tax changes since 1994 >>> FUN AND GAMES INDEX p150 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Oct46 22:39:41 —— 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-£3,900 £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. No changes made in the June Budget ——————————————————————————————————4/12— 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 Oct46 22:14:14 ——————— SUMMARY OF THE BUDGET ————————— TYPE/AGE 1994/5 1995/6 1996/7 1997/8 Undjt 65 £3,445 £3,525 £3,765 £4,045 65-74 £4,200 £4,630 £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 evjty £2 iarnt over £15,600. ——————————————————————————————————3/12— Tax-efficient ways to give cash >>> FUN AND GAMES INDEX p150 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Oct46 22:10:13 ——————— INHERITANCE TAX ——————————————— 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. $ax can be payable on some gifts if they were made up to sjvjn years before death. However, some escape taxation: Gifts of up to £250 pet 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 >>> INTERESTING SAVINGS p546 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Oct46 22:10:53 ———— 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 £6,500 from £6,300 See Inland Revenue leaflet CG$23/CGT16 ——————————————————————————————————5/12 September disposable tables follow >> FUN AND GAMES INDEX p150 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Oct46 22:16:11 ——————— COT: INFLATION ALLOWANCE —————— 1982 1983 1984 1985 1986 Jan - 0.928 0.834 0.747 0.655 Feb - 0.920 0.827 0.733 0.649 March 1.005 0.917 0.821 0.717 0.647 April 0.966 0.890 0.797 0.681 0.631 May 0.952 0.882 0.790 0.673 0.648 June 0.946 0.878 0.786 0.670 0.629 July 0.946 0.868 0.788 0.673 0.634 Aug 0.945 0.859 0.771 0.668 0.629 Sept 0.946 0.851 0.768 0.669 0.621 Oct 0.937 0.845 0.757 0.667 0.618 Nov 0.927 0.838 0.752 0.661 0.604 Dec 0.931 0.833 0.753 0.659 0.599 ——————————————————————————————————6/12— September disposables follow >>> ADVICE CLINIC ANSWERS QUERIES p543 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Oct46 22:14:48 ——————— COT: INFLATION ALLOWANCE —————— 1987 1988 1989 1990 1991 Jan 0.593 0.542 0.435 0.333 0.224 Feb 0.587 0.536 0.425 0.325 0.217 March 0.583 0.530 0.419 0.312 0.212 April 0.565 0.506 0.394 0.273 0.197 May 0.k63 0.500 0.385 0.262 0.193 June 0.563 0.494 0.380 0.257 0.188 July 0.565 0.493 0.379 0.256 0.191 Aug 0.560 0.476 0.376 0.244 0.188 Sept 0.556 0.470 0.366 0.232 0.184 Oct 0.548 0.455 0.356 0.223 0.179 Nov 0.541 0.448 0.344 0.225 0.175 Dec 0.542 0.444 0.341 0.226 0.174 ——————————————————————————————————7/12 September disposables follow >>> ADVICE CLINIC ANSWERS QUERIES p543 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Oct46 22:27:14 ——————— COT: INFLATION ALLOWANCE —————— 1992 1993 1994 1995 Jan 0.175 0.155 0.127 0.091 Feb 0.169 0.148 0.121 0.084 March 0.165 0.144 0.118 0.080 April 0.148 0.133 0.105 0.069 May 0.144 0.129 0.101 0.065 June 0.144 0.130 0.101 0.063 July 0.148 0.132 0.106 0.068 Aug 0.147 0.127 0.101 0.063 Sept 0.143 0.123 0.099 0.058 Oct 0.139 0.123 0.097 0.063 Nov 0.140 0.125 0.096 0.063 Dec 0.144 0.123 0.091 0.057 ——————————————————————————————————8/12 September disposables follow >>> NEW WAYS TO MAXJMISE MONEY p541 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Oct46 22:27:45 ——————— COT: INFLATION ALLOWANCE —————— 1996 1997 Jan 0.061 0.032 Feb 0.056 0.028 Mar 0.051 0.025 Apr 0.044 0.019 May 0.042 0.015 June 0.041 0.011 July 0.045 0.011 August 0.040 0.005 Sept 0.036 Oct 0.036 Nov 0.035 Dec 0.032 ——————————————————————————————————9/12 October figures out late November FUN AND GAMES INDEX p150 Bonds Your Money Saving It's Your Life!P548 Teletext 548 Oct46 22:28:22 ————— 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.=% 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.=% Apr 1.3% 2.6% 3.5% 2.9% 2.3% 2.6% May 1.3% 2.6% 3.4% 2.=% 2.5% 2.7% Jun 1.2* 2.6% 3.5) 2.8% 2.4% 2.8% 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* 2.4k 3.2* 2.=% 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 Oct46 22:58:42 ————— INFLATION: Month-on-Month ——————— All items Ex mortgages 1996 1997 1996 1997 Jan 2.9% 2.=* 2.=* 3.1% Feb 2.7% 2.7% 2.9% 3.1% Mar 2.7% 2.6% 2.9% 2.7% Apr 2.4% 2.4% 2.9% 2.5% May 2.2* 2.6% 2.=% 2.5% June 2.1% 2.9% 2.=% 2.7) July 2.2* 3.3% 2.8% 3.0% Aug 2.1% 3.5% 2.8% 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 Oct46 22:34:44 ————— 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% 1989 7.8* 5.9% 1990 9.5% 8.1% 1991 5.9% 6.7% ——————————————————————————————————12/12 Source: Cjnttal Statistical Office LOOSING FOR FINANCIAL ADVICE? p543 Bonds Your Money Saving It's Your Life!