Tax Rates and Allowances
|
2011-12 (£) |
2012-13 (£) |
Increase (£) |
| INCOME TAX ALLOWANCES: |
| Personal allowance |
7,475 |
8,105 |
+630 |
| CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT: |
| Individuals etc: |
10,600 |
10,600 |
+0 |
| Inheritance tax threshold |
325,000 |
325,000 |
- |
| PENSIONS SCHEMES: |
| Annual allowance: |
£50,000 |
£50,000 |
- |
| Lifetime allowance: |
1,800,000 |
1,500,000 |
- |
From the 2010-11 tax year the Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2
of income above the £100,000 limit. This reduction applies irrespective of age.
Taxable Bands
| Taxable bands 2011-12 (£) |
Taxable bands 2012-13 (£) |
| *Starting rate 10% |
0 - 2,560 |
*Starting rate 10% |
0 - 2,710 |
| Basic rate 20% |
0 - 35,000 |
Basic rate 20% |
0 - 34,370 |
| Higher rate 40% |
35,001 - 150,000 |
Higher rate 40% |
34,371 - 150,000 |
| Additional rate 50% |
Over 150,000 |
Additional rate 50% |
Over 150,000 |
* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income
is above this limit then the 10 per cent starting rate for savings will not apply.
The rates available for dividends for the 2010-11 tax year is the 10 per cent ordinary rate, the 32.5 per cent
dividend upper rate, and the new dividend additional rate of 42.5 per cent.
Corporation Tax Rates
| Band |
Corporation tax profits 2011-12 (£) |
Corporation tax profits 2012-13 (£) |
| 0 - 300,000 |
20% |
20% |
| 300,001 - 1,500,000 |
Marginal relief |
Marginal relief |
| 1,500,001 or more |
26% |
24% |
From 1 April 2010 onwards, the terminology used to describe some Corporation Tax rates and reliefs changed.
This table reflects the new terminology but for ease the changes are shown below:
- Small Profits Rate - previously Small Companies’ Rate
- Marginal Relief - previously Marginal Small Companies’ Relief
- Standard fraction - previously Marginal Small Companies’ Relief fraction
REV2: National Insurance Rates
|
2011-12 |
2012-13 |
| Primary threshold |
£139 per week |
£146 per week |
| Secondary threshold |
£136 per week |
£144 per week |
| Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit |
11% of £139.01 to £817 per week 1% above £817 per week |
12% of £144.01 to £817 per week 2% above £817 per week |
| Employers’ secondary Class 1 rate |
13.8% on earnings above £136 per week |
13.8% on earnings above £144 per week |
| Class 4 rate |
9% of £7,225 to £42,475 per year 2% above £42,475 per year |
9% of £7,605 to £42,475 per year 2% above £42,475 per year |
| Class 4 lower profits limit |
£7,225 per year |
£7,605 |
| Class 4 upper profits limit |
£42,475 per year |
£42,475 |
For further rates and allowances and historic tables see HMRC.