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Single
(ii)
EXAMPLES OF THE EFFECT THE PROPOSED INCREASE IN PERSONAL ALLOWANCE AND ADJUSTMENT TO 3RD TAX BAND WILL HAVE ON
SALARIES TAX PAYABLE AT VARIOUS INCOME LEVELS
Appendix E(3) (cont'd)
Annual income
($)
Tax payable
Chargeable
income
Present
(Exempt up to $29,000)
Effective
rate
Proposed
(Personal allowance increased by $5,000, subject
to 10% clawback PLUS adjustment to 3rd tax band)
Tax
Effective
payable
rate
($)
(%)
($)
($)
(%)
Tax saving
($)
Remarks
30,000
50
0.2
NIL
34,000
250
0.7
NIL
50
250
36,000
350
1.0
2,200
110
0.3
240
All of this group
48,000
1,400
2.9
15,400
1,040
2.2
360
59,000
3,000
5.1
27,500
2,625
4.4
375
This group receives full
benefit from the increase
in personal allowance.
receives partial benefit from the increase in
72,000
5,600
7.8
41,800
4,860
6.8
740
personal allowance while
83,000
8,000
9.6
53,900
7,280
8.8
720
some will also benefit
from the adjustment to the tax band.
84,000
8,250
9.8
55,000
7,500
8.9
750
96,000
11,250
11.7
67,000
10,250
10.7
1,000
108,000
14,250
13.2
79,000
13,250
12.3
1,000
120,000
17,250
14.4
91,000
16,250
13.5
1,000
132,000
20,250
15.3
103,000
19,250
14.6
1,000
144,000
23,250
16.1
115,000
22,250
15.5
1,000
This group receives no benefit from the increase in personal allowance but the full benefit of the adjustment to the tax band.
(159,375)
27,093
17.0
130,375
26,093
16.4
1,000
(161,765)
27,500
17.0
161,765
26,691
16.5
809
Standard rate taxpayers.
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