£ per year (unless stated)	2005-06	2006-07
Starting rate: 0%	£0 – £10,000	N/A*
Marginal relief	£10,001 – £50,000	N/A*
Small companies’ rate: 19%	£50,001–£300,000	£0-£300,000
Marginal relief	£300,001–£1,500,000	£300,001 - £1,500,000
Main rate: 30%	£1,500,001 or more	£1,500,001 or more
Non-corporate distribution rate	19%	N/A*

*The 2005 Pre-Budget Report announced that the starting rate and non-corporate distribution rate would be replaced with a single banding for small companies set at the existing small companies’ rate.
 

Income Tax Rates 2006/7 - Personal Allowance, CGT, Inheritance Tax, Taxable Bands

per year (unless stated)	2005-06	Change	2006-07
Income tax personal and age-related allowances
Personal allowance (age under 65)	£4,895	+£140	£5,035
Personal allowance (age 65-74)	£7,090	+£190	£7,280
Personal allowance (age 75 and over)	£7,220	+£200	£7,420
Married couple's allowance* (aged less than 75 and born before 6th April 1935)	£5,905	+£160	£6,065
Married couple's allowance* (age 75 and over)	£5,975	+£160	£6,135
Married couple's allowance* - minimum amount	£2,280	+£70	£2,350
Income limit for age-related allowances	£19,500	+£600	£20,100
Blind person’s allowance	£1,610	+£50	£1,660
Capital gains tax annual exempt amount
Individuals etc.	£8,500	+£300	£8,800
Most trustees	£4,250	+£150	£4,400
Inheritance tax threshold	£275,000	+£10,000	£285,000
Pension schemes allowances
Annual Allowance	N/A	N/A	£215,000
Lifetime Allowance	N/A	N/A	£1,500,000

*Married couple's allowance is given at the rate of 10 per cent.

Income tax: taxable bands

£ per year	2005-06	2006-07
Starting rate: 10%*	£0-£2,090	£0-£2,150
Basic rate: 22%*	£2,091-£32,400	£2,151-£33,300
Higher rate: 40%*	Over £32,400	Over £33,300

* The rate of tax applicable to savings income in Section 1A ICTA 1988 remains at 20 per cent for income between the starting and basic rate limits. The rates applicable to dividends are 10 per cent for income up to the basic rate limit and 32.5 per cent above that.