Income Tax Allowances, Reliefs and Credits




	2008/09 £	2007/08 £
Given at marginal rate of income tax
Personal allowance (minimum)	6,035	5,225
Personal allowance (age 65-74)	9,030	7,550
Personal allowance (age 75+)	9,180	7,690

Blind Person's Allowance	1,800	1,730

Rent-a-room tax free home income* *restricted to £2,150 if letting jointly	4,250	4,250

Relief restricted to 10%
Married couples/Civil partnerships allowance (age under 75 and born before 6th April 1935)	6,535	6,285
Married couples/Civil partnerships allowance (age 75+)	6,625	6,365
Married couples/Civil partnerships allowance (minimum)	2,540	2,440

Age related reliefs abated by £1 for every £2 of income over	21,800	20,900

Child Tax Credit (CTC)
Family element	545	545
Family element baby addition	545	545
Child element	2,085	1,845
Disabled child element	2,540	2,440
Severely disabled child element	1,020	980

Working Tax Credit (WTC)
Basic element	1,800	1,730
Couples & lone parent element	1,770	1,700
30 hour element	735	705
Disabled worker element	2,405	2,310
Severe disability element	1,020	980
50+ return to work payment (16-29 hours)	1,235	1,185
50+ return to work payment (30+ hours)	1,840	1,770

Childcare Element of WTC
Maximum eligible cost for one child	£175 per week	£175 per week
Maximum eligible cost for two or more children	£300 per week	£300 per week
Percentage of eligible costs covered	80%	80%

Withdrawal Rates for CTC & WTC
First income threshold	6,420	5,220
First income threshold for CTC only	15,575	14,495
First withdrawal rate	39%	37%
Second income threshold	50,000	50,000
Second withdrawal rate	6.67%	6.67%
Income increase disregarded	25,000	25,000

Limits for other relief's
Enterprise Investment Scheme (EIS) at 20%
Maximum Investment	500,000	400,000
EIS capital gains re-investment	Unlimited	Unlimited

Venture Capital Trusts (VCT) @ 30%
Maximum Investment	200,000	200,000

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