Facts & Figures Annual Statistics for the Tax Year 2008/2009. Enter for our full statistics review...

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1 Facts & Figures Annual Enter for our full statistics review...

2 The 2008 Budget Stability... contents l Stability was the key theme of the Budget delivered by Alistair Darling on 12 March. In his speech, he said that in every country in 2008, every government has one aim - to maintain stability through the world economic slowdown. Against a backdrop of a slowing housing market and the recent credit crisis, the Chancellor cut his economic growth forecast for 2008 to 1¾ - 2¼ per cent but left forecasts for subsequent years unchanged. The Chancellor also raised his borrowing forecasts for the next four years. Inflation is expected to rise in the short term but the Consumer Price Index target of 2 per cent was reaffirmed. Several tax increases were announced, with an increase of 9 per cent on alcohol duty, the price of a packet of 20 cigarettes rising by 11p and higher excise duty on gas guzzling vehicles. Housing was also a focus of the Budget, with banks being encouraged to offer long-term, fixed rate mortgages. Some 8 billion will be made available for affordable housing, and new shared equity schemes will be set up to help first-time buyers and key workers buy new homes. Click here to see what s inside...

3 l In this document... Introduction 2 > jump to Facts & Figures Contents Financial Markets 4 28 > jump to Earnings and Inflation > jump to Tax Information > jump to Social Security > jump to Miscellaneous > jump to This button normally prints the whole document. If you want to print just the page you are on, set your print options to Current View or Current Page after clicking the Print button. 3

4 introduction l main contents l In this section... FTSE(TM) UK Index Series 5 8 > jump to Facts & Figures Financial Markets Currencies 9 11 > jump to Bank of England s Base Rates 12 > jump to Yields and Interest Rates > jump to Non-gilt iboxx AA Yields > jump to Corporate iboxx AA Yields > jump to Returns Over 12 Months > jump to Rolling 5-Year Returns 26 > jump to Historical Returns > jump to This button normally prints the whole document. If you want to print just the page you are on, set your print options to Current View or Current Page after clicking the Print button. 4

5 Financial Markets FTSE(TM) UK Index Series UK Equity Indices The figures shown in the table are for the close of business on the last working day of the month, or the last day for which data was available. Source: FTSE(TM) Date FTSE(TM) All-Share FTSE(TM) All-Share FTSE(TM) 100 FTSE(TM) 100 Index Total Return Index Index Total Return Index Dec Nov Oct Sep Aug Jul Jun May Apr Mar 2, , , , Feb 3, , , , Jan , , , , Dec 3, , , , Nov 3, , , , Oct 3, , , , Sep 3, , , , Aug 3, , , , Jul 3, , , , Jun 3, , , , May 3, , , , Apr 3, , , , Mar 3, , , , Feb 3, , , , Jan , , , , PAGE SETUP GRAPH 5

6 Financial Markets FTSE(TM) UK Index Series UK Equity Indices The figures shown in the table are for the close of business on the last working day of the month, or the last day for which data was available. Source: FTSE(TM) Date FTSE(TM) All-Share FTSE(TM) All-Share FTSE(TM) 100 FTSE(TM) 100 Index Total Return Index Index Total Return Index Dec 3, , , , Nov 3, , , , Oct 3, , , , Sep 3, , , , Aug 3, , , , Jul 3, , , , Jun 2, , , , May 2, , , , Apr 3, , , , Mar 3, , , , Feb 2, , , , Jan , , , , Dec 2, , , , Nov 2, , , , Oct 2, , , , Sep 2, , , , Aug 2, , , , Jul 2, , , , Jun 2, , , , May 2, , , , Apr 2, , , , Mar 2, , , , Feb 2, , , , Jan , , , , GRAPH 6

7 Financial Markets FTSE(TM) UK Index Series UK Equity Indices The figures shown in the table are for the close of business on the last working day of the month, or the last day for which data was available. Source: FTSE(TM) Date FTSE(TM) All-Share FTSE(TM) All-Share FTSE(TM) 100 FTSE(TM) 100 Index Total Return Index Index Total Return Index Dec 2, , , , Nov 2, , , , Oct 2, , , , Sep 2, , , , Aug 2, , , , Jul 2, , , , Jun 2, , , , May 2, , , , Apr 2, , , , Mar 2, , , , Feb 2, , , , Jan , , , , Dec 2, , , , Nov 2, , , , Oct 2, , , , Sep 2, , , , Aug 2, , , , Jul 2, , , , Jun 1, , , , May 1, , , , Apr 1, , , , Mar 1, , , , Feb 1, , , , Jan , , , , GRAPH 7

8 Financial Markets FTSE(TM) UK Index Series UK Equity Indices The figures shown in the graph are for the close of business on the last working day of the month, or the last day for which data was available. Source: FTSE(TM) Index Values, End of Month FTSE(TM) 100 Index FTSE(TM) All-Share Index JAN 02 JULY JAN 03 JULY JAN 04 JULY JAN 05 JULY JAN 06 JULY JAN 07 JULY JAN 08 8

9 Financial Markets Currencies Currencies Figures relate to the last working day of each month. Sources: Bank of England, European Central Bank Please note the euro/sterling exchange rates are available free of charge from the ECB website Date Bank of England 1 Sterling = US $ 1 Sterling = Japanese Yen 1 Euro = Sterling Effective Sterling Index Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

10 Financial Markets Currencies Currencies Figures relate to the last working day of each month. Sources: Bank of England, European Central Bank Please note the euro/sterling exchange rates are available free of charge from the ECB website Date Bank of England 1 Sterling = US $ 1 Sterling = Japanese Yen 1 Euro = Sterling Effective Sterling Index Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

11 Financial Markets Currencies Currencies Figures relate to the last working day of each month. Sources: Bank of England, European Central Bank Please note the euro/sterling exchange rates are available free of charge from the ECB website Date Bank of England 1 Sterling = US $ 1 Sterling = Japanese Yen 1 Euro = Sterling Effective Sterling Index Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

12 Financial Markets Bank of England s Base Rates Bank of England s Base Rate The Bank of England s Base Rate as set by The Bank of England s Monetary Policy Committee. The final rate shown in the table was current at 30 April Source: Bank of England Date Base % 10 April February December July May January November August August August June May February November July February November October September August May April February Date Base % 10 February January November September June April February January December November October June November August July June May

13 Financial Markets Yields and Interest Rates Yields and Interest Rates The figures shown in the table are for the close of business on the last working day of the month, or the last day for when data was available. Source: FTSE(TM) FTSE(TM) British Government Stocks Yield Indices FTSE(TM) All-Share 3-month UK Gilts Index-linked Stocks Over 5 Years Actual Yield Interbank-Rate 5 Year (%) 10 Year (%) 15 Year (%) 20 Year (%) 0% Inflation (%) 5% Inflation (%) (%) (mid) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan GRAPH 13

14 Financial Markets Yields and Interest Rates Yields and Interest Rates The figures shown in the table are for the close of business on the last working day of the month, or the last day for when data was available. Source: FTSE(TM) FTSE(TM) British Government Stocks Yield Indices FTSE(TM) All-Share 3-month UK Gilts Index-linked Stocks Over 5 Years Actual Yield Interbank Rate 5 Year (%) 10 Year (%) 15 Year (%) 20 Year (%) 0% Inflation (%) 5% Inflation (%) (%) (mid) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan GRAPH 14

15 Financial Markets Yields and Interest Rates Yields and Interest Rates The figures shown in the table are for the close of business on the last working day of the month, or the last day for when data was available. Source: FTSE(TM) FTSE(TM) British Government Stocks Yield Indices FTSE(TM) All-Share 3-month UK Gilts Index-linked Stocks Over 5 Years Actual Yield Interbank Rate 5 Year (%) 10 Year (%) 15 Year (%) 20 Year (%) 0% Inflation (%) 5% Inflation (%) (%) (mid) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan GRAPH 15

16 Financial Markets Yields and Interest Rates Yields and Interest Rates The figures shown in the graph are for the close of business on the last working day of the month, or the latest date for when data was available. * The dotted line on the graph indicates a change in source data. Prior to 1999, the source data was 15 Year Medium Coupon Gilt Yield and FTSE(TM) Actuaries All- Share Gross Dividend Yield. From April 1999, the source data is 15 Year All Coupon Gilt Yield and FTSE(TM) Actuaries All-Share Net Dividend Yield. Source of base data: FTSE(TM) Yield (%) 15 Year Gilt Yield (%) FTSE(TM) Actuaries All-Share Yield (%) 0 JAN 91 JAN 92 JAN 93 JAN 94 JAN 95 JAN 96 JAN 97 JAN 98 JAN 99 JAN 00 JAN 01 JAN 02 JAN 03 JAN 04 JAN 05 JAN 06 JAN 07 JAN 08 16

17 Financial Markets Non-gilt iboxx AA Yields Non-gilt iboxx AA Yields Yield figures relate to the last working day of each month. Source: iboxx 1-3 Years 3-5 Years 5-7 Years 7-10 Years Years Over 10 Years Over 15 Years All Coupons (%) (%) (%) (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

18 Financial Markets Non-gilt iboxx AA Yields Non-gilt iboxx AA Yields Yield figures relate to the last working day of each month. Source: iboxx 1-3 Years 3-5 Years 5-7 Years 7-10 Years Years Over 10 Years Over 15 Years All Coupons (%) (%) (%) (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

19 Financial Markets Non-gilt iboxx AA Yields Non-gilt iboxx AA Yields Yield figures relate to the last working day of each month. Source: iboxx 1-3 Years 3-5 Years 5-7 Years 7-10 Years Years Over 10 Years Over 15 Years All Coupons (%) (%) (%) (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

20 Financial Markets Corporate iboxx AA Yields Corporate iboxx AA Yields The figures shown in the table are for the close of business on the last working day of the month. Source: iboxx 1-3 Years 3-5 Years 5-7 Years 7-10 Years Years Over 10 Years Over 15 Years All Coupons (%) (%) (%) (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

21 Financial Markets Corporate iboxx AA Yields Corporate iboxx AA Yields The figures shown in the table are for the close of business on the last working day of the month. Source: iboxx 1-3 Years 3-5 Years 5-7 Years 7-10 Years Years Over 10 Years Over 15 Years All Coupons (%) (%) (%) (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

22 Financial Markets Corporate iboxx AA Yields Corporate iboxx AA Yields The figures shown in the table are for the close of business on the last working day of the month. Source: iboxx 1-3 Years 3-5 Years 5-7 Years 7-10 Years Years Over 10 Years Over 15 Years All Coupons (%) (%) (%) (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

23 Financial Markets Returns Over 12 Months Returns Over 12 Months The figures in this table show the returns that single lump sum investments of each type would have produced over the previous 12 months, assuming all income is reinvested. Cash Deposits: 3-month Interbank Rate Long Gilts: FTSE(TM) Actuaries Over 15 Year Gilts Index Index-linked Gilts: FTSE(TM) Actuaries Index-linked All Stocks Index UK Equities: FTSE(TM) Actuaries All-Share Index CAPS Median: Median Fund Return from BNY Mellon Asset Servicing * indicates a provisional figure Sources: Mellon Analytical Solutions, Hewitt. Cash Deposits Long Gilts Index-linked Gilts UK Equities CAPS Median (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar * Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

24 Financial Markets Returns Over 12 Months Returns Over 12 Months The figures in this table show the returns that single lump sum investments of each type would have produced over the previous 12 months, assuming all income is reinvested. Cash Deposits: 3-month Interbank Rate Long Gilts: FTSE(TM) Actuaries Over 15 Year Gilts Index Index-linked Gilts: FTSE(TM) Actuaries Index-linked All Stocks Index UK Equities: FTSE(TM) Actuaries All-Share Index CAPS Median: Median Fund Return from BNY Mellon Asset Servicing * indicates a provisional figure Sources: Mellon Analytical Solutions, Hewitt. Cash Deposits Long Gilts Index-linked Gilts UK Equities CAPS Median (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

25 Financial Markets Returns Over 12 Months Returns Over 12 Months The figures in this table show the returns that single lump sum investments of each type would have produced over the previous 12 months, assuming all income is reinvested. Cash Deposits: 3-month Interbank Rate Long Gilts: FTSE(TM) Actuaries Over 15 Year Gilts Index Index-linked Gilts: FTSE(TM) Actuaries Index-linked All Stocks Index UK Equities: FTSE(TM) Actuaries All-Share Index CAPS Median: Median Fund Return from BNY Mellon Asset Servicing * indicates a provisional figure Sources: Mellon Analytical Solutions, Hewitt. Cash Deposits Long Gilts Index-linked Gilts UK Equities CAPS Median (%) (%) (%) (%) (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan

26 Financial Markets Rolling 5-Year Returns Rolling 5-Year Returns The graph shows the annualised returns that single lump sum investments of each type would produce over rolling 5-year periods to the end of each month, assuming all income is reinvested Returns (%) Cash Deposits Long Gilts Index-linked Gilts UK Equities The investment types used are also shown, together with the total returns upon which they are based. 10 Cash Deposits: 3-month Interbank Rate 5 Long Gilts: FTSE(TM) Actuaries Over 15 Year Gilts Index 0 Index-linked Gilts: FTSE(TM) Actuaries Index-linked All Stocks Index -5 UK Equities: FTSE(TM) Actuaries All-Share Index Source of base data: Hewitt -10 MAR 99 MAR 00 MAR 01 MAR 02 MAR 03 MAR 04 MAR 05 MAR 06 Quarter End MAR 07 MAR 08 26

27 Financial Markets Historical Returns (Since 1965) Historical Returns The table gives annualised rates of return for investment classes shown below over the periods ending with each year shown. The returns are calculated using indices available for each relevant period. UK Equities: FTSE(TM) Actuaries All-Share Index Long Gilts: FTSE(TM) Actuaries Over 15 Year Gilts Index Cash Deposits: 3-month Interbank Rate Source: Hewitt UK Equities Long Gilts Cash Deposits 1 Year 5 Years 10 Years 20 Years 1 Year 5 Years 10 Years 20 Years 1 Year 5 Years 10 Years 20 Years % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a

28 Financial Markets Historical Returns (Since 1965) Historical Returns The table gives annualised rates of return for various investment classes shown below over the periods ending with each year shown. The returns are calculated using indices available for each relevant period. UK Equities: FTSE(TM) Actuaries All-Share Index Long Gilts: FTSE(TM) Actuaries Over 15 Year Gilts Index Cash Deposits: 3-month Interbank Rate Source: Hewitt UK Equities Long Gilts Cash Deposits 1 Year 5 Years 10 Years 20 Years 1 Year 5 Years 10 Years 20 Years 1 Year 5 Years 10 Years 20 Years % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a. % p.a RETURN 28

29 introduction l main contents l In this section... Average Earnings Index > jump to Facts & Figures Earnings and Inflation Retail Prices Index > jump to Average Earnings Index and Retail Prices Index 34 > jump to Other Inflation Measures > jump to This button normally prints the whole document. If you want to print just the page you are on, set your print options to Current View or Current Page after clicking the Print button. 29

30 Earnings and Inflation Average Earnings Index Average Earnings Index The Average Earnings Index started in January 1976, and covers both manual and non-manual employees in Great Britain. The index figures shown are the not seasonally adjusted series, including bonuses, for the whole economy. The index was updated in October 2003, when the base year was changed to * indicates a provisional figure. Source: Office for National Statistics Index: Average 2000 = 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec * GRAPH 30

31 Earnings and Inflation Average Earnings Index Annual Increases in the Average Earnings Index These figures show the percentage increase in the Average Earnings Index, over the previous 12 months. The index was updated in October 2003, when the base year was changed to * indicates a provisional figure Source: Office for National Statistics Percentage Increase in the Index Over Previous 12 Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec * GRAPH 31

32 Earnings and Inflation Retail Prices Index Retail Prices Index The Retail Prices Index has been rebased to January 1987=100. Source: Office for National Statistics Index: January 1987 = 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GRAPH 32

33 Earnings and Inflation Retail Prices Index Annual Increases in the Retail Prices Index These figures show the percentage increase in the Retail Prices Index, over the previous 12 months. Source: Office for National Statistics Percentage Increase in the Index Over Previous 12 Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec GRAPH 33

34 Earnings and Inflation Average Earnings Index and Retail Prices Index AEI: Average Earnings Index (annual index) RPI: Retail Prices Index (annual index) Source of base data: Office for National Statistics Annual Increase (%) AEI RPI JAN 00 JAN 01 JAN 02 JAN 03 JAN 04 JAN 05 JAN 06 JAN 07 JAN 08 34

35 Earnings and Inflation Other Inflation Measures Other Inflation Measures RPIX All items in Retail Prices Index, excluding mortgage interest payments. Also known as the underlying rate. CPI Consumer Prices Index. Same index as HICP, which was renamed in December This has been rebased to 2005=100. Source: Office for National Statistics RPIX Index RPIX Annual Increase HICP/CPI Index HICP/CPI Annual Increase Jan 1987 = 100 (%) 2005 = 100 (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan GRAPH 35

36 Earnings and Inflation Other Inflation Measures Other Inflation Measures RPIX All items in Retail Prices Index, excluding mortgage interest payments. Also known as the underlying rate. CPI Consumer Prices Index. Same index as HICP, which was renamed in December This has been rebased to 2005=100. Source: Office for National Statistics RPIX Index RPIX Annual Increase HICP/CPI Index HICP/CPI Annual Increase Jan 1987 = 100 (%) 2005 = 100 (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan GRAPH 36

37 Earnings and Inflation Other Inflation Measures Other Inflation Measures RPIX All items in Retail Prices Index, excluding mortgage interest payments. Also known as the underlying rate. CPI Consumer Prices Index. Same index as HICP, which was renamed in December This has been rebased to 2005=100. Source: Office for National Statistics RPIX Index RPIX Annual Increase HICP/CPI Index HICP/CPI Annual Increase Jan 1987 = 100 (%) 2005 = 100 (%) Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan GRAPH 37

38 Earnings and Inflation Price Inflation Measures Price Inflation Measures The graph compares inflation measures increases in the following indices: RPI All items in the Retail Prices Index. Also known as the headline rate. RPIX All items in Retail Prices Index, excluding mortgage interest payments. CPI Consumer Prices Index Annual Increase (%) RPI Source of base data: Office for National Statistics 2 RPIX 1 0 HICP/CPI JAN 00 JAN 01 JAN 02 JAN 03 JAN 04 JAN 05 JAN 06 JAN 07 JAN 08 RETURN 38

39 introduction l main contents l In this section... Income Tax > jump to Facts & Figures Tax Information Inheritance Tax 42 > jump to Corporation Tax 42 > jump to Insurance Premium Tax 42 > jump to VAT 43 > jump to Capital Gains Tax > jump to This button normally prints the whole document. If you want to print just the page you are on, set your print options to Current View or Current Page after clicking the Print button. 39

40 Tax Information Income Tax Rates Income Tax Rates Figures relate to earned taxable income. From April 1999 to March 2008, when the 10% band was applicable, savings income was taxable at 10%, 20% or 40%, dependent on overall taxable income. For savings income in 2008/2009 a 10% rate applies to taxable income below 2,320 (and if taxable non-savings income is not above 2,320); 20% to taxable income between 2,321 (or 0 if taxable non-savings income is above 2,320) and 36,000; and 40% to taxable income above 36,000. For dividends, the rates are 10% for taxable income up to 36,000 and 32.5% for taxable income above 36, / /2009 Lower Rate Basic Rate Higher Rate (%) On First ( ) (%) On Next ( ) (%) Above ( ) 2008/2009 N/A N/A 20 36, , / , , , / , , , / , , , / , , , / , , , / , , , / , , , / , , , / , , , / , , , / , , ,100 Rate applicable to trusts: 34% for 1997/1998 to 2003/2004, and 40% from 2004/2005. Schedule F trust rate: 25% for 1999/2000 to 2003/2004, and 32.5% from 2004/2005. Source: HM Treasury 40

41 Tax Information Income Tax Reliefs 1997/ /2009 Income Tax Reliefs Other reliefs available include relief at 12.5% for premiums on life assurance contracts made before 14 March 1984, throughout the period of the contract. 1. Allowance abolished from 6 April 2000 where both partners were under 65 on 5 April Relief restricted to 15% for 1995/1996 to 1998/1999 and 10% for 1999/2000 onwards. 3. These allowances reduce where the income is above the income limit (i.e 21,800 for 2008/2009), by 1 for every 2 of income above the limit. Personal Married Age Allowance Married Age Allowance Married Income Limit Mortgage Allowance Couple s Allowance (65-74) Couple s Allowance (75 and over) Couple s Allowance for Interest Relief (1) (2) (3) (65-74) (3) (elder spouse 75 Age-related (4) (1) (2) (3) or over) (3) Allowances ( ) ( ) ( ) ( ) ( ) ( ) ( ) (%) 2008/2009 5,435-9,030 6,535 9,180 6,625 21, /2008 5,225 7,550 6,285 7,690 6,365 20, /2007 5,035 7,280 6,065 7,420 6,135 20, /2006 4,895 7,090 5,905 7,220 5,975 19, /2005 4,745 6,830 5,725 6,950 5,795 18, /2004 4,615 6,610 5,565 6,720 5,635 18, /2003 4,615 6,100 5,465 6,370 5,535 17, /2002 4,535 5,990 5,365 6,260 5,435 17, /2001 4,385 5,790 5,185 6,050 5,255 17, /2000 4,335 1,970 5,720 5,125 5,980 5,195 16, /1999 4,195 1,900 5,410 3,305 5,600 3,345 16, /1998 4,045 1,830 5,220 3,185 5,400 3,225 15, Available to 5 April 2000 on mortgages to a limit of 30,000. Source: HM Treasury 41

42 Tax Information Inheritance Tax / Corporation Tax / Insurance Premium Tax 2003/ / / /2009 Inheritance Tax Tapering relief available on gifts made between 3 and 7 years before death. For deaths on or after 9 October 2007, a transfer of unused nil-rate from a deceased spouse or civil partner may be made to the estate of their surviving spouse or civil partner. Insurance Premium Tax A higher rate of 17.5% applies on domestic appliances breakdown insurance, travel insurance and insurance sold with TV and car hire from 1 April Source: HM Treasury Inheritance Tax 2003/ / / / / /2009 ( ) ( ) ( ) ( ) ( ) ( ) Nil Rate Band 255, , , , , ,000 Corporation Tax 2003/ / / / / /2009 (%) (%) (%) (%) (%) (%) Full Rate Small Companies Rate Small Companies Rate: A new starting rate of 10% was introduced from 1 April 2000, and reduced to zero from 1 April 2002 for companies with taxable profits up to 10,000. From 1 April 2004, any distribution to a non-corporate person was taxed at a minimum rate of 19%. From 1 April 2006, the starting and non-corporate distribution rates were abolished. The Small Companies Rate applies to companies with taxable profits up to 300,000; full rate applies to companies with taxable profits over 1,500,000; others benefit from marginal relief. Insurance Premium Tax Rate 2000/ /2009 5% of gross premium 1999/2000 5% of gross premium from 1 July % of gross premium prior to 1 July / /1999 4% of gross premium 1995/ / % of gross premium 1994/ % of gross premium from 1 October