2007 Rates of Tax and Personal Reliefs etc.

Personal allowances restricted by 4/5ths

Single £2,600 x 4/5ths

£2,080

Married £5,200 x 4/5ths

£4,160

Earned income fraction ¼
Earned income maximum £3,400 x 4/5ths

£2,720

Wife’s earned income £4,500 x 4/5ths

£3,600

Personal allowances not restricted by 4/5ths

Additional Personal

£4,500

Child
Reduction

£2,500
£1 for £1

Child in further education
Reduction (calculated by reference to the excess of child's income over £2,500)

£5,000
£3 for £2

Thresholds (Exemption limits)

Single

£11,300

Married

£18,130

Single (Aged 63 or over for the whole of the year)

£12,610

Married (Aged 63 or over for the whole of the year)

£20,760

Retirement Annuity Relief

15% of Relevant Earnings (including other pension contributions) to a maximum

£15,000

Aged 40 - 49

25% of Relevant Earnings (including other pension contributions) to a maximum

£25,000

Aged 50 or over

35% of Relevant Earnings (including other pension contributions) to a maximum

£35,000

Motor expenses

Flat rate per mile: Car

55p

Flat rate per mile: Motor Cycle

27.5p