|
 |  |
 |
 |
|
 |  |
| Budget Summary Introduction |
For ten years Gordon Brown has delivered
the annual Budget speech - now at last he
was able to sit and listen. Alistair Darling
has not had an easy start to his new career:
there were calls for his head over the Northern
Rock affair when the ink was hardly dry
on his new job title, and the changes to
Capital Gains Tax he announced last October
attracted so much criticism that extra tax
reliefs had to be introduced. When he came
to write the Budget he would have found
several pages of "things to do"
left over when Mr Brown moved next door
some of the changes coming in April 2008
were announced in March 2007.
So, could Mr Darling make his first Budget
a success, economically and politically?
Could he make some changes of his own that
would not bear his predecessor's fingerprints?
He has promised to simplify tax, which would
be very welcome but Mr Brown had spent ten
years going the other way.
As usual, the speech itself does not tell
the full story. In 50 minutes at the despatch
box, Mr Darling hardly mentioned tax at
all. The important details are hidden away
in the 107 press releases issued by HM Revenue
& Customs after the Chancellor sat down.
This booklet summarises the main changes
and outlines their likely effect on the
average taxpayer.
|
| |
| Significant points |
| |
 |
As
announced last year, income
tax basic rate cut to 20%
and 10% starting rate restricted
to savings income. |
|
Rules
to prevent income shifting between
married couples and civil partners
deferred until 2009. |
|
Changes
to rules for counting days in
determining UK residence. |
|
£30,000
charge for using "remittance
basis" confirmed for foreign
domiciled long-term UK residents. |
|
Increases
in tax charges for employees
with company cars and free fuel
to use in them. |
|
Fundamental
reform of Capital Gains Tax
confirmed - no closure of last-minute
tax planning before 5 April. |
|
Nil
rate band for Inheritance Tax
transferable between married
couples and civil partners where
second dies on or after 9 October
2007. |
|
Changes
to rates of capital allowances
for plant and buildings from
April 2008. |
|
|
Personal
Income Tax |
Tax rates and allowances (Table
A) |
| |
Personal allowances and higher
rate thresholds were increased in
line with inflation. Age-related
allowances were increased at above
inflation, taking more pensioners
outside the charge to income tax.
As announced last year, general
income - salary, profits, pensions,
rent - will no longer benefit from
the 10% starting rate, while
the basic rate drops from 22%
to 20%. The benefit of these
changes is in the region of £790
for a higher-rate taxpayer.
The loss of the 10% rate on
earnings means that someone with
a salary of between £5,650
and £16,500 could be worse
off. A high earner will also pay
more in National Insurance Contributions
as a result of the raising of the
upper earnings limit (see p.4),
which will cancel much of the income
tax cut. The people who benefit
most are those with mainly investment
income.
The overall effect is complicated
by the different rates which continue
to apply for general income, interest
and dividends, and the possibility
that a separate claim may be made
for Working and Child Tax Credits
to be repaid by the Revenue. The
calculation of the tax position
remains as complex as ever.
Charities
When the basic rate of income tax
is cut, charities suffer a reduction
in the tax they can claim back on
Gift Aid donations. Charities and
Community Amateur Sports Clubs will
be temporarily protected from this
drop in income in spite of the cut
in basic rate on 6 April 2008:
for the three years 2008/09 to 2010/11,
they will still claim 28.2%
of Gift Aid donations as if the
basic rate was 22%. In 2011/12,
according to the current proposals,
the relief will drop to 25%
for the charity. An individual will
claim higher rate tax relief on
the basis that the cash gift was
80% of a gross donation.
Income split between husband
and wife
After the House of Lords ruled in
2007 that the taxman could not attack
a tax efficient split of income
between a husband and wife owning
a small company together (the case
of Garnett v Jones, also known as
"Arctic Systems") the
Government announced that the law
would be changed to make sure that
married couples in this situation
"paid their fair share of tax".
Detailed proposals were published
in December 2007 to reverse the
benefit of "uncommercial income
shifting" for tax. The Government
appears to have heeded the criticism
that the proposals would have made
self-assessment impossible and has
decided to defer any changes until
April 2009.
Remittance basis for foreign
domiciled people
In the October Pre-Budget Report,
Mr Darling announced a new measure
to restrict the tax advantages of
foreign domiciled people living
in the UK for the long term. Foreign
domiciled people are allowed to
pay tax on their overseas income
and capital gains only if and when
they bring the money into the UK
- known as the "remittance
basis of taxation".
As announced in October, a number
of significant changes will be made
from 6 April 2008. The most striking
is the imposition of a flat rate
£30,000 charge on those who
choose to be taxed on remittances
after being UK resident for 7 years.
This will not apply to anyone who
opts to be taxed on foreign income
as it arises, or to someone with
no more than £2,000 in overseas
income and gains.
 |
 |
|
Tax Trap |
|
If you
have in the past used
the remittance basis,
you need to review your
situation urgently. |
|
|
|
Residence test
In deciding whether a person is
resident in the UK for tax purposes,
it is necessary to count the number
of days spent in the UK. Until 5
April 2008, the Revenue's normal
practice has been to ignore days
of arrival and departure, which
was very favourable to the taxpayer.
From 6 April 2008, a day will be
counted if the person is in the
UK at midnight. This is more generous
than the October announcement, which
would have counted days of arrival
and departure.
|
 |
Tax
Credits |
| |
The rates of
Working Tax Credit (WTC) and Child
Tax Credit (CTC) for 2008/09 have
been in many cases increased in line
with inflation, but some elements
have not (e.g. the "family element"
of £545 which is available to
couples with children and combined
income up to £50,000, which
remains unchanged). The full table
of rates is too large and complex
for this brief summary. |
|
National Insurance
Contributions |
Rates and limits (Table D) |
| |
The percentage
rates of NIC remain unchanged. There
are small increases in the thresholds
and also in the flat rate weekly payments
under Classes 2 and 3.
The most striking change is a significant
increase in the upper limit at which
employee contributions drop from
11% to 1% and self-employed contributions
drop from 8% to 1%. It was announced
last year that this upper limit
is to be aligned with the higher
rate income tax threshold, probably
in 2009/10. The increase widens
the 11% band from £29,615
to £34,605: someone with high
earnings will pay £499 extra
on salary or £350 extra on
self-employed profits as a result
in 2008/09.
|
|
Employees |
Company cars and fuel (Table
C) |
| |
The taxable benefit
on most company cars will increase
slightly for 2008/09, because the
level of CO2 emissions on which the
minimum 15% charge is based drops
to 135g/km from 140g/km. This means
that the charge for most cars will
increase by 1% of the original list
price - unless they were already on
the maximum (35%), or are still below
the minimum. 3% is still to be added
to the CO2-based figure for diesel
cars. Cars with an emissions rating
of up to 120g/km will now qualify
for a special low tax charge of only
10% of the list price.
There will be a more
significant increase in the tax charge
on the benefit of free fuel provided
by an employer for private motoring
in a company car. The same percentage
rate applies as for the car benefit
itself, but the fixed figure it is
multiplied by rises from £14,400
to £16,900. The taxable benefit
on a car with a 135g/km rating has
therefore risen from £2,160
to £2,535, and the maximum benefit
has risen from £5,040 to £5,915
(a 17% increase).
Over the next few
years, there will also be changes
in vehicle excise duty and other measures
to encourage the use of lower emission
cars.
|
|
|
Tax Tip |
|
Consider
the future tax rates when
choosing a company car |
|
|
|
Enterprise Management Incentives
This tax-favoured
employee share option scheme has up
to now been restricted to shares with
a value of £100,000 and companies
with a gross asset value of up to
£30m. For options granted from
6 April 2008, the value limit rises
to £120,000. A new restriction
on the size of the company - fewer
than 250 employees - will apply from
Royal Assent to the Finance Act, probably
at the end of July.
|
|
Savings |
Pension contributions (Table
B) |
| |
The maximum amount
of a tax-efficient pension fund from
which benefits are drawn in 2008/09
is £1.65m. The maximum employer
contribution to a pension fund that
will enjoy tax relief is £235,000;
if an employee or self-employed person
contributes personally, tax relief
will be available on a gross premium
of up to 100% of current year earnings
up to the same £235,000 annual
limit.
The drop in the basic
rate of income tax to 20% will lead
to an increase in some personal pension
contributions. These are normally
paid net of basic rate tax, so the
premium has been 78% of a gross amount
- this will rise to 80% of the gross
figure from 6 April. A higher rate
taxpayer will still enjoy 40% tax
relief overall, but the higher rate
relief will come later through the
tax return.
|
| |
Individual Savings Accounts
(ISAs) and Personal Equity Plans (PEPs) |
| |
| The rules for ISAs and PEPs change
significantly on 6 April 2008, as announced
last year: |
|
"Mini and
maxi ISAs" are abolished. |
|
Up to £3,600pa
can be invested in a "cash
ISA". |
|
Up to £7,200pa,
less what has been invested in
cash, can be invested in a "stocks
and shares ISA" with the
same or a different provider. |
|
Existing cash mini-ISAs,
TESSA-only ISAs and the cash component
of maxi-ISAs will be converted
to cash ISAs. |
|
Existing stocks
and shares mini-ISAs, the share
component of maxi-ISAs and PEPs
will be converted to stocks and
shares ISAs. |
|
Investors will be permitted to
move money from cash ISAs to stocks
and shares ISAs. |
| |
|
|
|
Tax Tip |
|
The tax
breaks on ISAs are particularly
beneficial to 40% taxpayers. |
|
|
|
|
| |
| Enterprise Investment Scheme (EIS)
Investment in new
shares in small trading companies
can qualify for 20% income tax relief.
The annual limit on investment rises
in 2008/09 to £500,000 (2007/08:
£400,000). EIS investments also
allow the deferral of charges on capital
gains. The annual limit does not apply
to deferral relief.
Foreign shares
Dividends on UK company
shares are liable to tax at the basic
rate of 10% or higher rate of 32.5%,
but they come with a 10% tax credit
which covers all or part of the liability.
Foreign share dividends have been
taxed at the same rates, but up to
now have not enjoyed a tax credit.
From 6 April 2008, most dividends
from foreign companies received by
UK taxpayers will also be treated
as entitled to a 10% credit against
the tax liability. This cannot be
reclaimed by a non-taxpayer.
|
|
Capital
Gains Tax |
Annual exemption |
| |
The annual exemption
for individuals has been increased
to £9,600 for 2008/09 (2007/08:
£9,200). Trustees receive half
this figure (£4,800 for 2008/09;
£4,600 for 2007/08), although
this may be shared between trusts
which have been set up by the same
person.
|
| |
Major reform of the tax |
| |
As announced in
the Pre-Budget Report in October,
the following major changes will take
effect for disposals on or after 6
April 2008:
- abolition of taper relief, which
since 1998 has reduced the chargeable
gain based on the length of ownership
and has reduced the effective
rate of tax on business assets
to 10%.
- abolition of indexation allowance,
which was added to the cost of
assets owned since before 1998
to allow for the effect of inflation
- this has been frozen at the
1998 figure since then, but even
the frozen figure will disappear
in 2008/09.
- introduction of a single flat
rate of 18% to replace taper
relief, indexation allowance and
the charging of gains at the taxpayer's
marginal rate of income tax (10%,
20% or 40%).
- changes to the tax treatment
of assets that have been owned
since before 31 March 1982 - in
future, only the market value
at 31 March 1982 will be used
to compute gains, and the original
cost will be ignored altogether.
A number of plans have been put forward
as ways of preserving the benefit
of some of the reliefs before they
are abolished. The Budget did not
include any measure to close this
planning down.
The changes will allow a very significant
simplification of the rules for computing
gains on shares and securities. In
most cases shares in the same company
will be "pooled together"
and treated as a single asset from
which disposals are taken at average
cost.
Many other aspects of CGT - for example,
the exemption of the only or main
residence and the deferral of gains
using reinvestment in Enterprise Investment
Scheme shares - remain unchanged.
The taxation of gains of companies
is also unaffected, as they pay corporation
tax rather than CGT.
|
|
|
Tax Tip |
|
If you are
about to lose indexation
or a high rate of taper,
take advice on action before
5 April 2008. |
|
|
|
Entrepreneurs' Relief
A new relief will be introduced for
disposals after 5 April 2008 to compensate
some of those who would have enjoyed
an effective rate of CGT of 10%
under the taper relief regime for
business assets. The main rules are:
- the asset disposed of must be
a business or an interest in a
business, shares in a company
for which the individual works
and owns at least 5%, or related
assets owned outside such a business
or company and disposed of at
the same time.
- the assets must have been owned
for at least a year.
- an individual will have a lifetime
allowance of gains of up to £1m
which will be eligible for the
relief - this limit will be applied
cumulatively to successive disposals.
- the relief will operate by reducing
the chargeable gain by 4/9, cutting
the effective rate of tax from
18% to 10%.
|
|
Inheritance
Tax |
| |
Rates
The nil rate band for transfers after
5 April 2008 rises, as previously
announced, from £300,000 to £312,000.
Rates of tax remain unchanged at 40%
(death transfers) and 20% (lifetime
chargeable transfers).
Transfer of nil rate band
The Budget confirms the announcement
from the October Pre-Budget Report
that the nil rate band will be effectively
transferable between husband and wife.
Where one spouse has died with a chargeable
estate for IHT of less than the nil
rate band at the time, the unused
proportion will be added to the nil
rate band of the surviving spouse
on the second death. This relief applies
where the survivor dies on or after
9 October 2007, whenever the first
spouse died.
This means that one of the main IHT
planning devices of the past 20 years
- the nil rate band discretionary
will trust - may no longer be required.
|
|
|
Tax Tip |
|
It's
a good idea to review your
will regularly - this change
is just another good reason
to do so. |
|
|
|
Pension funds
When the pension rules changed in
April 2006, it appeared to be possible
to pass on assets in a tax-efficient
way by using a pension fund. This
idea has been effectively closed down
by anti-avoidance rules - it is possible
but there will be tax charges.
|
|
Stamp
Duty Land Tax |
|
|
| |
Zero-carbon
flats
Purchasers of new "zero-carbon"
flats with a price of up to £500,000
will enjoy a new exemption from Stamp
Duty Land Tax. This relief is to be
backdated to 1 October 2007.
Small share transfers
With effect from Budget Day, the transfer
of stocks and shares for a consideration
of up to £1,000 will be exempt
from Stamp Duty. Previously a £5
minimum charge applied.
Shared ownership properties
In a shared ownership scheme a tenant
purchases part of his house, pays
rent for the remainder and is given
an option to acquire the reversion.
With effect from Budget Day, buyers
of shared ownership properties will
only pay Stamp Duty Land Tax when
they acquire the final 20% of
the property, unless they choose to
pay the tax upfront. |
|
Corporation
Tax |
| |
| Rates
The main rate of Corporation Tax (for
companies with profits over £1.5m)
falls from 30% to 28% with
effect from 1 April 2008. The small
companies rate (for companies with
profits up to £300,000) rises
from 20% to 21% on the same
date, and will rise to 22% from
1 April 2009. The effective marginal
rate for profits between £300,000
and £1.5m in the year to 31 March
2009 will be 29.75% (down from
32.5%).
Associated companies
The profit limit of £300,000
for small companies rate has to be
divided between "associated companies".
These are companies "under common
control", determined according
to complex rules which can produce
unfair results. For example, a person
is deemed to own shares held by business
partners and close relatives in determining
whether a company is controlled. This
has created difficulties for investors
in film partnerships and private equity
firms, who may be in partnership with
people who own shares in many companies
that they cannot know about. From
1 April 2008, shareholdings of business
partners will only be counted in determining
entitlement to small companies rate
where the holding has been split between
them to obtain the benefit of that
lower rate.
Research and development
The enhanced tax relief for expenditure
on research and development will increase
to 175% (small/medium companies)
and 130% (large companies) once
European State Aid approval is granted. |
|
Business
Tax |
| |
Capital allowances
There will be major changes to capital
allowances with effect from 6 April
2008 (income tax businesses) or 1
April 2008 (companies). In summary:
-
All businesses
will receive an "annual investment
allowance" (AIA) of £50,000
a year. Purchases of plant and
machinery of up to this figure
will enjoy a 100% tax deduction.
This will provide a proportionately
greater benefit for smaller businesses.
- The writing down allowance (WDA)
on plant and machinery will fall
from 25% to 20%.
-
In accounting
periods starting on or after 1
April 2008, small pools of unrelieved
expenditure of up to £1,000
can be written off immediately.
- The WDA on long-life assets will
rise from 6% to 10%.
-
A new class
of capital allowance asset, "features
integral to a building",
will qualify for 10% WDA.
-
The allowances
for industrial buildings, agricultural
buildings and hotels will be phased
out: the WDA will fall from
4% to 3% on 1 April 2008,
then to 2% on 1 April 2009,
1% on 1 April 2010 and nil
from 1 April 2011. Enterprise
zone allowances will also be phased
out by 2011.
-
Where an accounting
period straddles the date on which
the rules change, the capital
allowances computation will be
complex, combining the different
rates and rules.
There will also
be changes to capital allowances on
cars in 2009, reducing the WDA on
cars with a CO2 rating of 160g/km
or more to 10%. |
|
|
|
Tax Tip |
|
These changes
produce planning opportunities
and pitfalls - review capital
expenditure plans. |
|
|
|
|
|
Value
Added Tax |
Registration thresholds
From 1 April 2008, the level of taxable
turnover at which a business is required
to register for VAT increases by £3,000
to £67,000. The level of predicted
future turnover at which a business
can deregister also rises by £3,000
to £65,000.
Fuel scale rate charges
Since 1 May 2007, the scale rate which
must be applied by a business which
provides fuel for its employees to
use for their private motoring has
depended on the CO2 emissions rating
of the car. The charge is not the
result of a simple formula as for
the income tax charge, and individual
figures have to be looked up in a
table published on the HMRC website
(www.hmrc.gov.uk)
or elsewhere.
The rates rise for VAT periods starting
on or after 1 May 2008. There is a
new minimum figure for cars with emissions
ratings up to 120g/km, but otherwise
the charges increase for all cars.
Once again the precise figure has
to be obtained from the full table,
as it cannot simply be calculated.
Renovation of empty properties
For several years the lower rate of
5% has been applicable to renovations
and alterations to dwellings that
have been empty for at least three
years. This is amended with effect
from 1 January 2008 so that the required
empty period is reduced to two years.
Correction of VAT errors
If a trader discovers errors in VAT
accounting of more than £2,000,
it is currently necessary to notify
HM Revenue & Customs in order
to correct them. Smaller errors can
be adjusted in the VAT return without
separate disclosure. From 1 July 2008,
the limit will rise to the greater
of £10,000 or 1% of turnover
disclosed on the return in Box 6.
Errors corrected in this way do not
create a liability to interest.
Option to tax
Owners of commercial properties can
choose whether to charge VAT on supplies
of land, or to take advantage of the
exemption that generally applies.
The rules on this "option to
tax" are being revised following
a consultation. The new version will
apply from 1 June 2008.
Overpaid or underclaimed VAT
In 1996, the Government introduced
a three-year time limit for claiming
back output VAT that should not have
been paid. In 1997, this was extended
to underclaimed input VAT. Because
these rules were brought in without
warning, the European Court of Justice
held that they contravened traders'
rights to a reasonable transitional
period. The Government has finally
accepted this ruling, and the last
chance to claim VAT from before the
caps were introduced will now run
until 31 March 2009.
|
|
Other
Measures |
Filing deadline
As previously announced, self-assessment
returns for tax year 2007/08 may still
be filed online up to 31 January 2009.
Returns in hard copy will have a new
earlier deadline of 31 October 2008.
The due dates for paying tax are not
affected (31 January 2009 for the
balancing payment of income tax and
CGT for 2007/08).
|
|
|
Tax Tip |
|
If you want
to file a paper return,
make sure you are ready
on time. |
|
|
|
Payments on account (POA)
Self-assessment taxpayers have to
make two payments on account, on 31
January during the tax year and 31
July following, based on the self-assessment
tax liability of the previous year.
No POA are due if the previous year's
liability does not exceed £500
or 20% of the total tax payable.
The £500 limit will increase
to £1,000 from 6 April 2009 onwards,
i.e. for the 2009/10 payments on account
due on 31 January 2010 and 31 July
2010. HMRC are introducing measures
to allow payment of tax by credit
card.
Errors and mistakes
At present, different time limits
apply for HM Revenue & Customs
to assess underpayments of the different
taxes (income tax, corporation tax,
VAT) and for taxpayers to reclaim
overpayments. These time limits are
to be rationalised with effect from
1 April 2010: for simple errors,
the taxman and the taxpayer will have
just four years to make a correction
(currently up to six). For a failure
to take reasonable care, the taxman
will still have six years to assess
income tax and corporation tax, but
only four for VAT. The time limit
remains 20 years for attempted fraud.
At the same time, penalties for incorrect
returns and failing to notify liability
will be reformed and made consistent
across the taxes. The changes will
apply to chargeable periods starting
on or after 1 April 2009.
Anti-avoidance
As usual, there were many press notices
describing measures to close down
artificial and complicated tax avoidance
schemes. They are important to the
Chancellor, but the details are likely
only to be of interest to tax lawyers
and very high earners.
|
|
Tax
Tables |
| |
Table A
Allowances and Reliefs |
| |
2008/09 |
2007/08 |
| Allowed at top
rate of tax |
|
|
| Personal Allowance |
£5,435 |
£5,225 |
| Personal Allowance
(65-74)* |
9,030 |
7,550 |
| Personal Allowance
(75 and over)* |
9,180 |
7,690 |
| Blind Person's
Allowance |
1,800 |
1,730 |
| |
| Allowed only at
10% |
|
|
| Married Couple's
Allowance (65-74)+* |
6,535 |
6,285 |
| Married Couple's
Allowance (75 and over)+* |
6,625 |
6,365 |
| Income Limit for
age-related allowances |
21,800 |
20,900 |
| |
+ only available
if born before 6th April 1935.
|
*
Age allowances are reduced £1
for every £2 by which income
exceeds the income limit, until
the age allowance is reduced
to the normal allowance. Personal
allowance is reduced before
married couple's allowance.
MCA is reduced to a minimum
of £2,540 (2007/08: £2,440).
|
| |
| Bands |
2008/09 |
2007/08 |
| Starting |
* |
£2,230 |
| Basic |
36,000 |
32,370 |
| Higher |
over 36,000 |
over 34,600 |
* Starting rate
band within basic rate band for
savings income only: £2,320.
|
| |
| Rates differ for
General, Interest and Dividend
income within each band: |
| Rates |
2008/09 |
|
2007/08 |
| |
G |
I |
D |
|
G |
I |
D |
| Starting |
N/A |
10% |
10% |
|
10% |
10% |
10% |
| Basic |
20% |
20% |
10% |
|
22% |
20% |
10% |
| Higher |
40% |
40% |
32.5% |
|
40% |
40% |
32.5% |
| General
income (salary, profit,
rent) uses starting rate
and basic rate bands before
savings income. Dividends
are taxed as the 'top
slice' of income. |
|
| |
Table B
Pension Contributions |
| |
| The maximum
annual tax efficient gross contributions
(up to age 75) in 2008/09 are: |
| - individuals: |
|
£3,600
or 100% of earnings
to £235,000 |
| - employers: |
|
£235,000
less employee contributions |
|
| Maximum
tax efficient fund (lifetime allowance)
where benefits are taken in 2008/09:
£1.65m. |
| |
| Only current
earnings count for the 100%
limit. It is no longer possible
to use prior earnings or to carry
back contributions to earlier
years. |
| |
Table C
Benefits In Kind |
| |
Car
Benefit Assessment 2008/09
Charge based on a percentage
of the initial list price of
the car; the percentage
depends on the carbon dioxide
emission ratings of the car,
if it has one. For older cars
without a rating, the percentage
depends on engine capacity.
For 2008/09 the percentage for
a petrol engine is 15% for
ratings from 121g/km - 135g/km.
The percentage increases by
1% for every complete 5g/km
in excess of this (i.e. at 140,145
etc), to a maximum of 35%.
Diesel cars have 3% added
to this figure, but still have
a maximum percentage of 35%.A
new lower rate of 10% (13%
diesel) is available for cars
with a rating up to 120g/km.
|
| |
Car Fuel Assessment
The benefit is calculated using
the same percentage as that used
for the car benefit, applied to
a standard figure of £16,900
(2007/08: £14,400).
The taxable amount is therefore
between £1,690 (10% -
min.) and £5,915 (35%
- max.).
|
|
|
|
|
National
Insurance |
| |
Table D
Rates and limits for 2008/09 |
| |
| Class 1 |
Weekly |
Monthly |
Yearly |
| Primary Threshold
- employees |
£105 |
£453 |
£5,435 |
| Upper Earnings
Limit - employees |
£770 |
£3,337 |
£40,040 |
| Secondary Threshold
- employers |
£105 |
£453 |
£5,435 |
|
| |
| Employer's
Contribution |
Contracted
In |
Contracted
Out |
| |
|
Salary
Related Scheme |
Money
Purchase Scheme |
| On
earnings up to threshold |
Nil |
Nil |
Nil |
| On
earnings between threshold
and upper earnings limit |
12.8% |
9.1% |
11.4% |
| On
earnings above upper earnings
limit |
12.8% |
12.8% |
12.8% |
|
| |
| | | | | | |
