Understanding the UK tax rates for the 2006/2007 tax year is essential for contractors, small business owners, and individuals to ensure compliance with the tax system. These tables provide key information on income tax allowances, taxable bands, corporation tax rates, and national insurance contributions applicable during this period.
Tax Rates and Allowances
| Description | 2005-06 (£) | 2006-07 (£) | Increase (£) |
|---|---|---|---|
| Income Tax Allowances | |||
| Personal allowance | 4,895 | 5,035 | 140 |
| Capital Gains Tax Annual Exempt Amount | |||
| Individuals etc | 8,500 | 8,800 | 300 |
| Other trustees | 4,250 | 4,400 | 150 |
| Inheritance Tax Threshold | 275,000 | 285,000 | 10,000 |
| Pension Schemes | |||
| Annual allowance | N/A | 215,000 | N/A |
| Lifetime allowance | N/A | 1,500,000 | N/A |
Taxable Bands
| Description | 2005-06 (£) | 2006-07 (£) |
|---|---|---|
| Starting Rate | 10% on income up to 2,090 | 10% on income up to 2,150 |
| Basic Rate | 22% on income from 2,091 to 32,400 | 22% on income from 2,151 to 33,300 |
| Higher Rate | 40% on income over 32,400 | 40% on income over 33,300 |
Corporation Tax Rates
| Corporation Tax Profits | 2005-06 (£) | 2006-07 (£) |
|---|---|---|
| Starting Rate | 10% on profits up to 10,000 | 0% on profits up to 10,000 |
| Marginal Relief | 10% on profits from 10,001 to 50,000 | 10% on profits from 10,001 to 50,000 |
| Small Companies’ Rate | 19% on profits from 50,001 to 300,000 | 19% on profits from 50,001 to 300,000 |
| Marginal Relief | 10% on profits from 300,001 to 1,500,000 | 10% on profits from 300,001 to 1,500,000 |
| Main Rate | 30% on profits over 1,500,000 | 30% on profits over 1,500,000 |
REV2: National Insurance Rates
| Description | 2005-06 (£) | 2006-07 (£) |
|---|---|---|
| Primary Threshold | £94 per week | £97 per week |
| Secondary Threshold | £94 per week | £97 per week |
| Employees’ Primary Class 1 Rate | 11% on earnings between primary threshold and upper earnings limit; 1% above upper earnings limit | 11% on earnings between primary threshold and upper earnings limit; 1% above upper earnings limit |
| Employers’ Secondary Class 1 Rate | 12.8% on earnings above secondary threshold | 12.8% on earnings above secondary threshold |
| Class 4 Rate | 8% on profits from £4,895 to £32,760; 1% above £32,760 | 8% on profits from £5,035 to £33,540; 1% above £33,540 |
| Class 4 Lower Profits Limit | £4,895 per year | £5,035 per year |
| Class 4 Upper Profits Limit | £32,760 per year | £33,540 per year |
While the information in these tables is now historical, it remains useful for understanding past tax systems and for comparing how tax rates have evolved over time. If you’re reviewing past financial records or simply curious about previous tax periods, these tables are a valuable reference.
For more detailed information and additional resources, you can visit HMRC.
If you want to see the UK tax tables for 2005/2006, click here.