Budget 2002 Taxes

Tax Allowances

	2001/02	2002/03	Gain
Personal	£4,535	£4,615	£80
10%	Next £1,880	Next £1,920	£40
22% band	Next £27,520	Next £27,980	£460
40% band	Over £33,935	Over £34,515	£580
Personal (65-74)	£5,990	£6,110	£120
Married couple (67-74)*	£5,365	£5,465	£100
Personal (75-plus)	£6,260	£6,370	£110
Married couple (75 plus)*	£5,435	£5,535	£110
Age allowance restricted from	£17,600	£17,900	£300
Inheritance tax threshold	£242,000	£250,000	£8,000
Inheritance tax rate	40%	40%	0
Capital Gains Tax threshold	£7,500	£7,700	£200
Nat Insurance at 10%	87-575 pw	89-585 pw	-

* Where one partner born on or before 5 April 1935, allowance restricted to 10%

Source: Pricewaterhouse Coopers 17/04/02

National Insurance

2001/02 Charged at 10% on earning between £4,524 and £29,900 per year 2002/03 Charged at 10% on earnings between £4,615 and £30,420 per year 2003/04 Charged at 11% on earnings between £4,615 and £30,940 a year and at 1% on all earnings above this	Yearly Income	2001/02	2002/03	2003/04	Change
	£5,000	48	39	42	-6
	£10,000	548	539	592	44
	£15,000	1,048	1,039	1,142	94
	£20,000	1,548	1,539	1,692	144
	£25,000	2,048	2,039	2,242	194
	£30,000	2,538	2,581	2,792	254
	£35,000	2,538	2,581	2,936	398
	£40,000	2,538	2,581	2,986	448
	£45,000	2,538	2,581	3,036	498
	£50,000	2,538	2,581	3,086	548
	£60,000	2,538	2,581	3,186	648
	£70,000	2,538	2,581	3,286	748
	£80,000	2,538	2,581	3,386	848
	£100,000	2,538	2,581	3,586	1,048
	£150,000	2,538	2,581	4,086	1,548
	£200,000	2,538	2,581	4,586	2,048

Source: Pricewaterhouse Coopers 17/04/02

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The Budget 2002 proposals are subject to amendment before the Finance Act receives Royal Assent. This Budget 2002 Focus publication is for guidance only, and professional advice should be obtained before acting on any information contained herein. We cannot accept any responsibility for any errors or omissions it might contain or any loss occasioned as a result of action or in action based on the publication's content. The information provided is for general information in respect of the topics covered.