Rates And Allowances

Current Tax Year: 2014 - 15

Income tax, capital gains tax, inheritance tax and pension schemes

£ per year (unless stated) 2014-15 (£) 2013-14 (£) 2012-13 (£)
 
Income tax
Personal allowance (age under 65) * 10,000 9,440 8,105
Personal allowance (age 65-74) 10,500 10,500 10,500
Personal allowance (age 75 and over) 10,660 10,660 10,660
 
Married couple's allowance** 8,165 7,915 7,705
Married couple's allowance** - minimum amount 3,140 3,040 2,960
Income limit for age-related allowances 27,000 26,100 25,400
Blind person’s allowance 2,230 2,160 2,100
       
Starting rate band of 10% on savings income up to 2,880 2,790 2,710
Basic rate of 20% on income; 10% on dividend income 0 - 31,865 0 - 32,010 0 - 34,370
Higher rate of 40% on income; 32.5% on dividend income 31,865 - 150,000 32,010 - 150,000 34,370 - 150,000
Additional rate of 45% on income over; 37.5% on dividend income Over 150,000 Over 150,000 -
Additional rate of 50% on income over; 42.5% on dividend income - - Over 150,000
 
Capital gains tax 
Annual exempt ammount      
Individuals, personal representatives and trustees for disabled people 11,000 10,900 10,600
Other trustees 5,500 5,450 5,300
Rates      
Individuals - within the remaining basic rate band 18% 18% 18%
Individuals - above the basic rate band 28% 28% 28%
Trustees or personal representatives of someone who has died 28% 28% 28%
For gains qualifying for Entrepreneurs' Relief 10% 10% 10%
       
Inheritance tax
Rate 40% 40% 40%
Lower Rate 36% *** 36% *** 36% ***
Nil rate band 325,000 325,000 325,000
 
Pension scheme allowances
Annual Allowance 40,000 50,000 50,000
Lifetime Allowance 1,200,000 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

£ per year Y/E 31.03.2015 (%) Y/E 31.03.2014 (%) Y/E 31.03.2013 (%)
£0 - £300,000 20 20 20
£300,001 - £1,500,000 Marginal relief Marginal relief Marginal relief
£1,500,001 or more 21 23 24

 

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

 

National Insurance

£ per week (unless stated) 2014-15 2013-14 2012-13
Lower earnings limit, primary Class 1 £111 £109 £107
Upper earnings limit, primary Class 1 £805 £797 £817
Upper accruals point £770 £770 £770
Primary threshold £153 £149 £146
Secondary threshold £153 £148 £144
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 (for contracted-out salary-related schemes only) 1.4% 1.4% 1.4%
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% 3.4%
Class 2 rate £2.75 £2.70 £2.65
Class 2 small earnings exception (per year) £5,885 £5,725 £5,595
Special Class 2 rate for share fishermen £3.40 £3.35 £3.30
Special Class 2 rate for volunteer development workers £5.55 £5.45 £5.35
Class 3 rate (per week) £13.90 £13.55 £13.25
Class 4 lower profits limit (per year) £7,956 £7,755 £7,605
Class 4 upper profits limit (per year) £41,865 £41,450 £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%

 

Tax credits and benefits

£ per year (unless stated) 2014-15 2013-14 2012-13
 
Working Tax Credit
Basic element £1,940 £1,920 £1,920
Couple and lone parent element £1,990 £1,970 £1,950
30 hour element £800 £790 £790
Disabled worker element £2,935 £2,855 £2,790
Severe disability element £1,255 £1,220 £1,195
 
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 £300 per week £300 per week £300 per week
Percentage of eligible costs covered 70% 70% 70%
 
Child Tax Credit
Family element £545 £545 £545
Child element £2,750 £2,720 £2,690
Disabled child element £3,100 £3,015 £2,950
Severely disabled child element £1,255 £1,220 £1,190
 
Income thresholds and withdrawal rates
Income threshold £6,420 £6,420 £6,420
Withdrawal rate 41% 41% 41%
Threshold for those entitled to Child Tax Credit only £16,010 £15,910 £15,860
Income rise disregard £5,000 £5,000 £10,000
Income fall disregard £2,500 £2,500 £2,500
       
Child benefit and guardian’s allowance rates
£ per week      
Eldest/ only child 20.50 20.30 20.30
Other children 13.55 13.40 13.40
Guardian’s allowance 16.35 15.90 15.55

Stamp Duty Land Tax rates and thresholds
From 4th December 2014

From 4th December 2014, the rules for calculating the stamp duty land tax (SDLT) charged on the purchases of residential properties changed. Previously it had been calculated on a "slab basis" and therefore charged at a single percentage of the purchase price paid for the property, depending on the rate band within which the purchase price fell.

But from 4th December 2014, SDLT will be charged at each rate on the portion of the purchase price which falls within each rate band:

Property value band Rate
£0 - £125,000 0%
£125,001 - £250,000 2%
£250,001 - £925,000 5%
£925,001 - £1,500,000 10%
£1,500,001+  12%

Where contracts have been exchanged but transactions have not completed on or before 3rd December 2014, purchasers will have a choice of whether the old or new structure and rates apply.

This measure will apply in Scotland until 1st April 2015, when SDLT is devolved and replaced in Scotland by Land & Buildings Transaction Tax.

Stamp Duty Land Tax rates and thresholds
From 20th March 2014 to 3rd December 2014

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 20th March 2014 SDLT is charged at 15% on interests in residential dwellings costing more than £500,000 purchased by certain "non-natural persons". If you exchanged contracts on or after 21st March 2012 but before 20th March 2014 the earlier £2 million threshold for this charge will apply, subject to transitional rules.

"Non-natural persons" include companies, partnerships including a company and collective investment schemes. There are exclusions for trustees of a settlement, property rental businesses, property developers and traders, properties made available to the public, financial institutions acquiring dwellings in the course of lending, dwellings occupied by employees and farmhouses.

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