EU Savings Tax Directive, part 4

2006 / 2007 Budget

UK 2006 / 2007 Budget

What are the changes?

Summary of allowances and tax rates & bands

Personal allowances are up to 5,035 from 4,895 [2005/2006]

Income tax % and rates:

  • 10% on first 2,150 of taxable income pa over 5,035
  • 22% on next 31,150 of taxable income pa
  • 40% on everything above 33,300 of taxable income pa

National insurance % and rates

Employed personnel will pay the following:

  • First 84.00 per week is NI exempt
  • 11% of earnings from 97.01 up to 645 per week
  • 1% of earnings on everything above 645 per week

Do you know the implications on you?

Savings Tax Directive, effecive 1st July 2005

What are the implications? Tax on savings interest

  • 15%, for interest payments from 1 July 2005 to 30 June 2008
  • 20%, for interest payments from 1 July 2008 to 30 June 2011
  • 35%, for interest payments from 1 July 2011 onwards

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