Rates And Allowances

Current Tax Year: 2012 - 2013

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) 2012-13 (£)   2011-12 (£)
 
Income tax personal and age-related allowances
Personal allowance (age under 65) * 8,105   7,475
Personal allowance (age 65-74) 10,500   9,940
Personal allowance (age 75 and over) 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** 7,705   7,295
Married couple's allowance** - minimum amount 2,960   2,800
Income limit for age-related allowances 25,400   24,000
Blind person’s allowance 2,100   1,980
 

 

    
Starting rate band of 10% on savings income up to 2,710   2,560
Basic rate of 20% on income; 10% on dividend income 0 - £34,370   0 - £35,000
Higher rate of 40% on income; 32.5% on dividend income £34,370 - £150,000   £35,000 - £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. 10,600   10,600
Most trustees 5,300   5,050
       
Individual inheritance tax allowance
Rate 40%   40%
Lower Rate 36% ***   N/A
Nil rate band 325,000   325,000
 
Pension schemes allowances
Annual Allowance 50000   50,000
Lifetime Allowance 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 6 April 1935

*** For deaths on or after 6 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 31.03.2013 (%) Y/E 31.03.2012 (%)
£0-£300,000* 20 20
£300,001 - £1,500,000 Marginal relief Marginal Relief
£1,500,001 or more 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) 2012-13 2011-12
Lower earnings limit, primary Class 1 £107 £102
Upper earnings limit, primary Class 1 £817 £817
Upper accruals point £770 £770
Primary threshold £146 £139
Secondary threshold £144 £136
Employees’ primary Class 1 rate between primary threshold and upper earnings limit 12% 12%
Employees’ primary Class 1 rate above upper earnings limit 2% 2%
Employees’ contracted-out rebate - salary-related schemes 1.4% 1.6%
Employees’ contracted-out rebate - money-purchase schemes Abolished from 6 April 2012 1.6%
Married women’s reduced rate between primary threshold and upper earnings limit 5.85% 5.85%
Married women’s rate above upper earnings limit 2% 2%
Employers’ secondary Class 1 rate above secondary threshold 13.8% 13.8%
Employers’ contracted-out rebate, salary-related schemes 3.4% 3.7%
Employers’ contracted-out rebate, money-purchase schemes Abolished from 6 April 2012 1.4%
Class 2 rate £2.65 £2.50
Class 2 small earnings exception (per year) £5,595 £5,315
Special Class 2 rate for share fishermen £3.30 £3.15
Special Class 2 rate for volunteer development workers £5.35 £5.10
Class 3 rate (per week) £13.25 £12.60
Class 4 lower profits limit (per year) £7,605 £7,225
Class 4 upper profits limit (per year) £42,475 £42,475
Class 4 rate between lower profits limit and upper profits limit 9% 9%
Class 4 rate above upper profits limit 2% 2%

 

Working and child tax credits rates

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

Child benefit and guardian’s allowance rates from 6 April 2009

£ per week 2012-13 (£) 2011-12 (£)
Eldest/Only Child (Jan 09) 20.30 20.30
Other Children (Jan 09) 13.40 13.40
Guardian’s Allowance 15.55 14.75

From 7th January, a claw-back of Child Benefit may apply to individuals with income in excess of £50,000 per tax year if they or someone in their household is in receipt of Child Benefit. See our High Income Child Benefit Charge article or contact us for more information

Stamp Taxes and Duties
Transfers of land and buildings (consideration paid)
From 6 April 2012
 

Rate Residential in disadvantaged areas & Non Residential Residential outside disadvantaged areas
  Total value of consideration
Zero 0 - £150,000 0 - £125,000
1% Over £150,000 - £250,000 Over £125,000 - £250,000*
3% Over £250,000 - £500,000 Over £250,000 - £500,000
4% Over £500,000 £500,000 - £1,000,000
5% N/A Over £1,000,000 - £2,000,000
7% N/A Over £2,000,000


*£150,000 for non-residential property, and residential property in disadvantaged areas. Special rules apply for new zero-carbon homes.

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