News from Cryer Sandham Limited
Business and financial news

March 2007

 

 

B) 2007-2008 Tax Rates

 

For 2007-2008 the basic tax free allowances for each individual are as follows:-

Income tax 5,225

Capital Gains Tax 9,200

Inheritance Tax 300,000

 

In addition dividend income from owner managed companies continues to have an "effective income tax free rate". For 2007-2008 this applies to individuals whose gross taxable income from all sources does not exceed 39,825.

 

Finally may we once again remind all operating through a limited company that any and all monies taken from the company by the shareholders/directors must either be treated as

 

- salary, expenses reimbursed, or benefits in kind,

- dividends,

- interest on directors loans to the company or

- the withdrawal of such loans.