Tax Rates and Allowances
| 2012-13 (£) | 2013-14 (£) | Increase (£) | |
|---|---|---|---|
| INCOME TAX ALLOWANCES: | |||
| Personal allowance | 8,105 | 9,440 | +1335 |
| 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: | 1,500,000 | 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 2012-13 (£) | Taxable bands 2013-14 (£) | ||
|---|---|---|---|
| *Starting rate 10% | 0 - 2,710 | *Starting rate 10% | 0 - 2,790 |
| Basic rate 20% | 0 - 34,370 | Basic rate 20% | 0 - 32,010 |
| Higher rate 40% | 34,371 - 150,000 | Higher rate 40% | 32,011 - 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 2013-14 tax year is the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate, and the new dividend additional rate of 37.5 per cent.
Corporation Tax Rates
| Band | Corporation tax profits 2012-13 (£) | Corporation tax profits 2013-14 (£) |
|---|---|---|
| 0 - 300,000 | 20% | 20% |
| 300,001 - 1,500,000 | Marginal relief | Marginal relief |
| 1,500,001 or more | 24% | 23% |
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
National Insurance Rates
| 2012-13 | 2013-14 | |
|---|---|---|
| Primary threshold | £146 per week | £149 per week |
| Secondary threshold | £144 per week | £148 per week |
| Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit | 12% of £144.01 to £817 per week 2% above £817 per week | 12% of £148.01 to £797 per week 2% above £797 per week |
| Employers’ secondary Class 1 rate | 13.8% on earnings above £144 per week | 13.8% on earnings above £148 per week |
| Class 4 rate | 9% of £7,605 to £42,475 per year 2% above £42,475 per year | 9% of £7,755 to £41,450 per year 2% above £41,450 per year |
| Class 4 lower profits limit | £7,605 per year | £7,755 |
| Class 4 upper profits limit | £42,475 per year | £41,450 |
For further rates and allowances and historic tables see HMRC.