MONTAGUE BROWN...TAX TABLES

INCOME TAX
Main Personal Reliefs	2003/04	2002/03
Personal allowance	£	£
Basic	4,615	4,615
Age 65-74	6,610	6,100
Age 75 +	6,720	6,370
Aged Income Limit	18,300	17,900
Married couple's & other allowances
In addition to above personal allowance
Basic	NIL	NIL
Age 65-74	5,565*~	5,465*~
Age 75 +	5,635*	5,535*
Aged income limit	18,300	17,900
Children's Tax Credit	#	5,290**
Children's Tax Credit: baby rate - add	#	5,200**
Blind Person	1,510	1,480
* Relief restricted to 10%
** Relief restricted to 10% and abated by £2 for every £3 of income in the higher rate tax band
# Replaced by child tax credit - amount varies with income and child care expenses
~ Available where either spouse born before 6 April 1935

Tax Rates
	2003/04		2002/03
Rate	Taxable income	Tax on band	Taxable income	Tax on band
%	£	£	£	£
10	0-1,960	196	0-1,920	192
22	1,961-30,500	6,278	1,921-29,900	6,155
40	Excess	-	Excess	-
The tax charge on savings income is 10% for starting rate taxpayers, 20% for basic rate taxpayers and 40% for higher rate taxpayers.
The rates applicable to dividends are 10% and 32.5% for higher rate taxpayers only.

VALUE ADDED TAX
Standard rate - from 1/4/91	17.5%
Registration level	From 10/4/03	From 25/4/02
Annual turnover	£56,000	£55,000
N.B. From 10/4/03 Optional Flat Rate Accounting Scheme for businesses with tax exclusive taxable turnover of up to £150,000p.a.(25/4/02 - 9/4/03 £100,000)

VEHICLE BENEFITS
Company Cars		2002/ 03 to 2004/05
CO2 emissions in grams per kilometre			% of car's
2002/03*	2003/04*	2004/05*	list price taxed
165	155	145	15% 1
200	190	180	22% 1
250	240	230	32% 1
255	245	235	33% 2
260	250	240	34% 3
265	255	245	35% 4
*Each 5 grams per kilogram, increase % by 1%.
Supplement if car runs solely on diesel:
1 Add 3%. 2 Add 2%. 3 Add 1%. 4 Maximum charge, so no diesel supplement

Provision of Fuel for Company Cars
(if any private fuel is provided)
2003/04	2002/03
The vehicle's CO2 emissions percentage figure, as shown in the above table is multiplied by £14,400		Petrol	Diesel
		& lpg
		£	£
	Up to 1400cc	2,240	2,850
	1401cc to 2000cc	2,850	2,850
	Over 2000cc	4,200	4,200

Statutory Mileage Rates
(previously "Inland Revenue Approved Rates")
	2002/03 onwards
	up to 10,000 miles	Over
Cars and Vans	40p	25p
Motorcycles	24p	24p
Bicycles	20p	20p
Each passenger-same trip	5p	5p

VAT ON FUEL BENEFITS
Amounts treated as additional output tax per quarter
	From 1/5/03		From 1/5/02
	Petrol & lpg	Diesel	Petrol & lpg	Diesel
	£	£	£	£
Up to 1400cc	35.29	33.51	33.65	31.57
1401cc to 2000cc	44.68	33.51	42.59	31.57
Over 2000cc	65.82	42.14	62.85	39.91

CAPITAL GAINS TAX
Annual Exemption
	2003/04	2002/03
For gains over the annual exempt amount :	£7,900	£7,700
Excess below the starting rate limit charged at 10% and between starting and basic rate limit tax at 20% and above at 40%.
Trusts for the disabled have the full individual's exemption.
	2003/04	2002/03
For other trusts the exemption is:	£3,950	£3,850

Taper Relief
Complete years of ownership post 5/4/98*	% of gain chargable
	Business assets		Other assets*
	2002/03	2000/01-	1998/99-
	onwards	2001/02	2003/04
1	50	87.5	100
2	25	75	100
3	25	50	95
4	25	25	90
5	25	25	85
6	25	25	80
7	25	25	75
8	25	25	70
9	25	25	65
10 or more	25	25	60
*Other assets-add bonus year if held on 17/3/98.

Retirement Relief
Qualifying age limit remains at 50.
	Fully exempt on first	50% exempt on next
2002/03	£50,000	£150,000
2003/04	£Nil	£Nil

NATIONAL INSURANCE CONTRIBUTIONS
Class 1	2003/04
Contracted out
Monthly rate of pay	Employee*	Employer**	Employer**
		COSR	COMP
up to £334	Nil	Nil	Nil
£334.01 - £385	-1.6%	-3.5%	-1%
£385.01 - £2,579	9.4%	9.3%	11.8%
>£2,579	1%	12.8% on excess	12.8% on excess
COSR - Contracted-out salary related
COMP - Contracted-out money purchase
* Contributions payable only on earnings above £385 pm.
** Contributions payable on all earnings above £385 pm. Rebate of 3.5% (COSR) or 1%(COMP) due on earnings between £334 and £2,579pm.

Not contracted out	Employee	Employer
Monthly rate of pay
up to £385	Nil	Nil
£385.01 - £2,579	11%	12.8%
>£2,579	1%	12.8% on excess
Contributions payable only on earnings above £385 pm.
Class 2 Self-employed £2.00pw on earnings of £4,095pa and over.
Class 3 Voluntary £6.95pw.
Class 4 Self employed 8% of profits between £4,615 and £30,940 pa and 1% thereafter.

CORPORATION TAX
	Years commencing
	1/04/2002 & 2003
Full rate	30%
Mall companies' starting rate*	NIL
small companies' rate (SCR)	19%
SCR limit	£300,000
SCR marginal rate limit	£1,500,000
Fraction in marginal band	11/400
Marginal rate	32.75%
ACT on dividends	NIL
* Applies to companies with profits up to £10,000.
For companies with profits between £10,000 and £50,000 a marginal rate of 23.75% applies.

Lifetime Transfers
Gifts to individuals and certain trusts are Potentially Exempt Transfers. If the donor survives seven years the transfers are completely exempt. All other lifetime transfers are chargeable to tax at half the rate chargeable on death. Where tax is charged on death on any gift made within seven years of death, taper relief may apply as follows.
Years before death	0-3	3-4	4-5	5-6	6-7
Death rate tax percentage %	100	80	60	40	20

Main Reliefs
Reduction in value transferred	from 6/4/96
Whole or part of a business	100%
Quoted shares giving control	50%
Unquoted shares*	100%
Agricultural relief-working farmer and property let on tenancies starting after 31/8/95	100%
Agricultural relief-other let property	50%
*Shares quoted on AIM and USM are treated as unquoted.

STAMP DUTY
Property other than shares	Transfers after 28/3/00*
£60,000 or less	NIL
£60,001-£250,000	1%
£250,001-£500,000	3%
Over £500,000	4%
Unless made under a contract entered into before 22/3/00.*
The rate on shares is 0.5%.

PENSIONS
% Of "Net Relevant Earnings"
Age at start of year	Personal Pension Schemes	Retirement Annuity Contracts
Up to 35	17.5	17.5
36-45	20.0	17.5
46-50	25.0	17.5
51-55	30.0	20.0
56-60	35.0	22.5
61 and over	40.0	27.5

Pension Scheme Earnings Cap
	From 6/4/03	From 6/4/02
Limit on "Net Relevant Earnings"	£99,000	£97,200
Applies to:
All personal pension schemes from 6/4/89.
Members of occupational schemes set up on or after 14/3/89.
Persons joining any occupational scheme on or after 1/6/89.

CAPITAL ALLOWANCES
Machinery or Plant	First year allowance	*40%~**
(Excluding cars, ships and assets for leasing)	writing down allowance	25%~
Cars, ships and assets for leasing	writing down allowance	25%
Industrial buildings	writing down allowance	4%
Agricultural buildings	writing down allowance	4%
Commercial buildings Enterprise Zones		100%
Information and Communications Technology		100%**
Energy saving Plant & Machinery		100%
~ For long life assets lower rates apply.
*Applicable to expenditure incurred by small and medium sized businesses as defined by the Companies Act.
**Applicable to expenditure incurred by small businesses for 4 years to 31 March 2004.

NB
Information in these tables is not to be relied upon without first having
contacted Montague Brown