Rates And Allowances

Current Tax Year: 2013 - 2014

Rates and allowances set for various types of tax are set out below.

Income tax, capital gains tax, and inheritance tax

£ per year (unless stated)

2013-14 (£)

2012-13 (£) 2011-12 (£)
 
Income tax personal and age-related allowances
Personal allowance (age under 65) * 9,440 8,105 7,475
Personal allowance (age 65-74) 10,500 10,500 9,940
Personal allowance (age 75 and over) 10,660 10,660 10,090
 
There is a £100,000 earnings limit after which no personal allowance is available. This applies to both employees and the Self Employed
   

 

 
Married couple's allowance** 7,915 7,705 7,295
Married couple's allowance** - minimum amount 3,040 2,960 2,800
Income limit for age-related allowances 26,100 25,400 24,000
Blind person’s allowance 2,160 2,100 1,980
   

 

 
Starting rate band of 10% on savings income up to 2,790 2,710 2,560
Basic rate of 20% on income; 10% on dividend income 0 - £32,010 0 - £34,370 0 - £35,000
Higher rate of 40% on income; 32.5% on dividend income £32,010 - £150,000 £34,370 - £150,000 £35,000 - £150,000
Additional rate of 45% on income over; 37.5% on dividend income Over £150,000 - -
Additional rate of 50% on income over; 42.5% on dividend income - Over £150,000 Over £150,000
 
Capital gains tax annual exempt amount
Individuals etc. 10,900 10,600 10,600
Most trustees 5,450 5,300 5,050
       
Individual inheritance tax allowance
Rate 40% 40% 40%
Lower Rate 36% *** 36% *** N/A
Nil rate band 325,000 325,000 325,000
 
Pension schemes allowances
Annual Allowance £50,000 £50,000 £50,000
Lifetime Allowance £1,500,000 £1,500,000 £1,500,000

* Personal allowance reduced by 50% of income over £100,000.

** Married couple's allowance is given as a 10% tax credit. Either person must be born before 6th April 1935.

*** For deaths on or after 6th April 2012, a lower rate of Inheritance tax of 36% can apply where 10% or more of the deceased person's net estate is left to charity.

 

Corporation tax on profits

£ per year (unless stated) Y/E 31.03.2014(%) Y/E 31.03.2013 (%) Y/E 31.03.2012 (%)
£0-£300,000* 20 20 20
£300,001 - £1,500,000 Marginal relief Marginal relief Marginal Relief
£1,500,001 or more 23 24 26

Note; The upper (£1.5m) and the lower (£300k) limits are divided by the number of associated companies controlled by a person.

 

National insurance contributions

£ per week (unless stated) 2013-14 2012-13 2011-12
Lower earnings limit, primary Class 1 £109 £107 £102
Upper earnings limit, primary Class 1 £797 £817 £817
Upper accruals point £770 £770 £770
Primary threshold £149 £146 £139
Secondary threshold £148 £144 £136
Employees’ primary Class 1 rate between primary threshold and upper earnings limit 12% 12% 12%
Employees’ primary Class 1 rate above upper earnings limit 2% 2% 2%
Employees’ contracted-out rebate - salary-related schemes 1.4% 1.4% 1.6%
Employees’ contracted-out rebate - money-purchase schemes Abolished from 6 April 2012 Abolished from 6 April 2012 1.6%
Married women’s reduced rate between primary threshold and upper earnings limit 5.85% 5.85% 5.85%
Married women’s rate above upper earnings limit 2% 2% 2%
Employers’ secondary Class 1 rate above secondary threshold 13.8% 13.8% 13.8%
Employers’ contracted-out rebate, salary-related schemes 3.4% 3.4% 3.7%
Employers’ contracted-out rebate, money-purchase schemes Abolished from 6 April 2012 Abolished from 6 April 2012 1.4%
Class 2 rate £2.70 £2.65 £2.50
Class 2 small earnings exception (per year) £5,725 £5,595 £5,315
Special Class 2 rate for share fishermen £3.35 £3.30 £3.15
Special Class 2 rate for volunteer development workers £5.45 £5.35 £5.10
Class 3 rate (per week) £13.55 £13.25 £12.60
Class 4 lower profits limit (per year) £7,755 £7,605 £7,225
Class 4 upper profits limit (per year) £41,450 £42,475 £42,475
Class 4 rate between lower profits limit and upper profits limit 9% 9% 9%
Class 4 rate above upper profits limit 2% 2% 2%

 

Working and child tax credits rates

£ per year (unless stated) 2013-14 2012-13 2011-12
 
Working Tax Credit
Basic element £1,920 £1,920 £1,920
Couple and lone parent element £1,970 £1,950 £1,950
30 hour element £790 £790 £790
Disabled worker element £2,855 £2,790 £2,650
Severe disability element £1,220 £1,195 £1,130
50+ Return to work payment (16-29 hours) Removed Removed £1,365
50+ Return to work payment (30+ hours) Removed Removed £2,030
 
Childcare element of the Working Tax Credit
Maximum eligible cost for one child £175 per week £175 per week £175 per week
Maximum eligible cost for two or more children £175 per week £175 per week £300 per week
Percentage of eligible costs covered 70% 70% 70%
 
Child Tax Credit
Family element £545 £545 £545
Child element £2,720 £2,690 £2,555
Disabled child element £3,015 £2,950 £2,800
Severely disabled child element £1,220 £1,190 £1,130
 
Income thresholds and withdrawal rates
First income threshold £6,420 £6,420 £6,420
First withdrawal rate 41% 41% 41%
Second income threshold Withdrawn Withdrawn £40,000
Second withdrawal rate Withdrawn Withdrawn 41%
First threshold for those entitled to Child Tax Credit only £15,910 £15,860 £15,860
Income disregard £5,000 £10,000 £10,000
Income fall disregard £2,500 £2,500 N/A
       
Child benefit and guardian’s allowance rates
£ per week      
Eldest/ Only Child 20.30 20.30 20.30
Other Children 13.40 13.40 13.40
Guardian’s Allowance 15.90 15.55 14.75

 

Stamp Taxes and Duties
Transfers of land and buildings (consideration paid)
From 6th April 2013

Rate Non Residential Residential
  Total value of consideration Total value of consideration
Zero 0 - £150,000 0 - £125,000
1% £150,000 - £250,000 £125,000 - £250,000*
3% £250,000 - £500,000 £250,000 - £500,000
4% Over £500,000 £500,000 - £1,000,000
5%   £1,000,000 - £2,000,000
7%   Over £2,000,000 from 22nd March 2012
15%   Over £2,000,000 (purchased by certain persons including corporate bodies) from 21st March 2012

 

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