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GIBRALTAR TAX
FACTS 2006/2007 |
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Income Tax
Rates |
Rate |
Tax on band |
Taxable income bands |
% |
£ |
£0 - £4,000 |
17(reduced rate) |
680 |
£4,001 - £16,000 |
30(standard rate) |
2,700 |
Over - £16,000 |
40 |
- |
Principal Income Tax |
Reliefs / Allowances |
| Allowances & Reliefs |
2007/08 |
2006/07 |
| Personal |
2,660 |
2,660 |
| Spouse's Allowance |
2,490 |
2,490 |
| Nursery School Allowance (per
child) |
965 |
965 |
| Child Relief |
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| In respect of first child only |
940 |
910 |
| In respect of each child educated
abroad |
1,045 |
1,015 |
| Disabled Person |
2,575 |
2,500 |
| Dependent Relative (maximum) |
180 |
175 |
| Blind Person |
590 |
570 |
| Apprentice |
360 |
350 |
| Single Parent |
2,490 |
2,415 |
| House Purchase Allowance |
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| Deduction |
11,500 |
11,500 |
| Special (£1,000 max p.a.) |
4,000 |
4,000
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| Social Insurance |
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| Employee |
335 |
335 |
| Self-employed |
432 |
432 |
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NEW GROSS INCOME BASED SYSTEM OPTION |
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Every taxpayer may choose between the normal system and this new Gross Income Based system and pay under whichever results in the lower tax. |
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Gross Income Based system has no allowances and tax rates of:- |
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- 20 % on first £25,000 income
- 30 % on next £75,000
- 40 % above £100,000
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Rules relating to the Gross Income Based system will prevent one family member benefiting from the new system and another getting the benefits of the allowances (e.g. mortgage interest etc) under the other system. |
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Under this GIB System no taxpayer with income below £25,000 per annum will pay more than 20 % tax. No taxpayer with income below £50,000 per annum will pay more than 25 % tax. |
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OTHER ALLOWANCES
& RELIEFS |
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Low Earners
A tax credit of £595 (2006/07 - £275) is given to taxpayers
whose earned income for the tax year is less than £8,000 (2005/06
- £8,000) and is now paid through the PAYE code.
Low Income Tax Credit extended to those who earn between £8,000 and £19,500. In combination with widening the Standard Rate band, all these taxpayers will recieve a benefit of at least £300 per annum, mostly through PAYE code.
Students
Earnings during school and university are exempt from tax
Mortgage Interest Relief
Interest fully allowable on Gibraltar residential property occupied
by taxpayer.
Life Assurance Premiums
Premiums fully allowable provided they do not exceed 1/6 of assessable
income or 7% of the capital sum assured at death.
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GIBRALTAR INFORMATION |
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