Understanding the UK tax rates for the 2005/2006 tax year is crucial for both individuals and businesses to ensure compliance with the tax system. These tables cover key tax allowances, income tax rates, corporation tax rates, and national insurance rates for the period. Whether you’re an employee, a contractor, or a business owner, knowing these values can help you make informed financial decisions and plan your taxes effectively.
Tax Rates and Allowances
| Description | 2004-05 (£) | 2005-06 (£) | Increase (£) |
|---|---|---|---|
| Income Tax Allowances | |||
| Personal allowance | 4,745 | 4,895 | 150 |
| Capital Gains Tax Annual Exempt Amount | |||
| Individuals etc | 8,200 | 8,500 | 300 |
| Other trustees | 4,100 | 4,250 | 150 |
| Inheritance Tax Threshold | 263,000 | 275,000 | 12,000 |
| Pension Schemes Earnings Cap | 102,000 | 105,600 | 3,600 |
Taxable Bands
| Description | 2004-05 (£) | 2005-06 (£) |
|---|---|---|
| Starting Rate | 10% on income up to 2,020 | 10% on income up to 2,090 |
| Basic Rate | 22% on income from 2,021 to 31,400 | 22% on income from 2,091 to 32,400 |
| Higher Rate | 40% on income over 31,400 | 40% on income over 32,400 |
Corporation Tax Rates
| Description | 2004-05 (£) | 2005-06 (£) |
|---|---|---|
| Starting Rate | 0% 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 |
National Insurance Rates
| Description | 2004-05 (£) | 2005-06 (£) |
|---|---|---|
| Primary Threshold | £91 per week | £94 per week |
| Secondary Threshold | £91 per week | £94 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 £4,745 to £31,720; 1% above £31,720 | 8% on profits from £4,895 to £32,400; 1% above £32,400 |
| Class 4 Lower Profits Limit | £4,745 per year | £4,895 per year |
| Class 4 Upper Profits Limit | £31,720 per year | £32,400 per year |
These UK tax tables for 2005/2006 provide an essential reference for understanding the key tax rates and allowances that were in effect during that tax year. Whether you’re revisiting historical tax data or planning for future tax obligations, these tables serve as a helpful guide. Tax rules evolve over time, so it’s important to stay updated on the current rates.
For more detailed information and additional resources, you can visit HMRC.
If you want to see the UK tax tables for 2004/2005, click here.