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 20th March 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 20 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 21 March 2012 but before 20 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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