Personal Finance
Tax Facts 1

Pink Tax Tables Tax Year 2001-2002

 Tax Forms
 

Income and Capital Gains Tax Rates
     
     
Income Tax   2001/02
Lower  10% on first £1,880
Basic 22% next £27,520
Higher 40% over £29,400

Most savings income and dividends have tax deducted at source, which satisfies basic rate tax liability.

Tax Allowances

Basic Allowance 2001/02
Personal £4,535
Married Couples 1 Nil
Single Parents 1 Nil
Widows Bereavement 1&2 Nil
Blind Person £1,450
Rent a Room £4,250
Age Allowance (3) 2001/02
Personal 65-74years  £5,990
Personal 75+  £6,260
Married Couples 1&4 65-74yrs £5,365
Married Couples 1&4 75+ £5,435
Mortgage Interest Relief 2001/02
Loans Up To £30,000 Nil

Notes

  1. Married couples and related allowances are restricted to 10%.
  2. Widows bereavement allowance is available only for deaths prior to 6 April 2000.
  3. The higher personal allowances are reduced by £1 for every £2 in excess of income of £17,600 until the basic allowance is reached.
  4. The married age allowance for 2000/01 and subsequently is available only when one of the couple was born before 6 April 1935; the income related reduction cannot reduce the allowance below £2,070. 

Inheritance Tax

  2001/2002
Nil Rate Band £242,000
Tax Rate On Excess 40%

Lifetime Gifts

Tax charges on gifts made within 7 years of death.

Years Before Death % of Death Duty
0-3 100%
3-4  80%
4-5  60%
5-6  40%
6-7  20%
   
Small Gifts Per Donee £250
Annual Per Donor £3,000
Parent Gift On Marriage  £5,000
Grandparent Or Party To Marriage £2,500
Other £1,000

Capital Gains Tax

  2001/2002
Annual Exemption  £7,500

For 2000/01 onwards tax rates for individuals are 10, 20% & 40% depending on marginal rates of income tax.

For 1998/99 onwards taper relief applies

Complete Tax Years Which    
Asset Held After 5/4/1998. Tapered Chargeable Gain
  Non Business Business
1yr Or Less 100% 100%
1yr 100% 87.5%
2yrs  100% 75%
3yrs  95% 50%
4yrs 90% 25%
5yrs 85%  
6yrs 80%
7yr 75%
8yrs  70%
9yrs  65%  
10yrs  60%
     
Complete Tax Years Which    
Asset Held After 5/4/1998. Tax Rate Payable
  Non Business Business
1yr Or Less 40%/20% 40%/20%
1yr 40%20% 35%/17.5%
2yrs  40%/20% 30%/15%
3yrs  38%/19% 20%/10%
4yrs 36%/18% 10%/5%
5yrs 34%/17%  
6yrs 32%/16%
7yr 30%/15%  
8yrs  28%/14%
9yrs  26%/13%  
10yrs  24%/12%

Notes

An increased taper relief applies to business assets which, for
disposals after 5 April 2000, tapers over a 4 year period, as shown above: a longer period applies pre 6 April 2000. + assets held at 17/3/1998 qualify for an additional year of tapering for disposals
prior to 6/4/2000.
 

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