P221 CEEFAX 221 Wed 30 Dec 21:31/10   1/4     TAX GUIDE (1)  + Income tax is assessed on personal income only after your income exceeds the totals below. These are known as tax-free personal allowances. 1986/87 1987/88 Single Married Single Married £2,335 £3,655 £2,425 £3,795 + If, however, you are 65 or over or can expect capital gains of more than £6,600 in the current tax year, see the following pages.  More
P221 CEEFAX 221 Wed 30 Dec 21:30/00   2/4     TAX GUIDE (2) + If you are 65 or over at the end of the tax year, the tax-free portion of your income is as follows. 1986/87 1987/88 Single Married Single Married £2,850 £4,505 £2,960 £4,675 + If, however, your personal income exceeds £9,800 in 1987/88, you lose £2 of your age allowance for every £3 by which your income exceeds £9,800. NB Your personal allowance remains intact however great your income. + Check next page for your tax bracket.  More
P221 CEEFAX 221 Wed 30 Dec 21:30/10   3/4     TAX GUIDE (3) + After deducting allowances (preceding pages) your income is taxed as follows: 1986/87 % 1987/88 % First £17,200 29 First £17,900 27 £17,201-£20,200 40 £17,901-£20,400 40 £20,201-£25,400 45 £20,401-£25,400 45 £25,401-£33,300 50 £25,401-£33,300 50 £33,301-£41,200 55 £33,301-£41,200 55 £41,201 upwards 60 £41,201 upwards 60 NB Taxable income is arrived at after deducting personal allowances, mortgage interest, pension contributions, etc.  More
P221 CEEFAX 221 Wed 30 Dec 21:30/00   4/4     TAX GUIDE (4) + The first £6,600 of net capital gains in any one year is exempt from capital gains tax. Once this threshold has been reached, capital gains are subject to capital gains tax at a basic 30pc. 1986/87 1987/88 Annual exemption Annual exemption £6,300 £6,600 + All losses for the year in question should be deducted in order to arrive at the net gain.  More