Tax Rates and Allowances
| 2013-14 (£) | 2014-15 (£) | Increase (£) | |
|---|---|---|---|
| INCOME TAX ALLOWANCES: | |||
| Personal allowance | 9,440 | 10,000 | +560 |
| CAPITAL GAINS TAX ANNUAL EXEMPT AMOUNT: | |||
| Individuals etc: | 10,900 | 11,000 | +100 |
| Inheritance tax threshold | 325,000 | 325,000 | - |
| PENSIONS SCHEMES: | |||
| Annual allowance: | £50,000 | £40,000 | -10,000 |
| Lifetime allowance: | 1,500,000 | 1,250,000 | -250,000 |
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 2013-14 (£) | Taxable bands 2014-15 (£) | ||
|---|---|---|---|
| *Starting rate 10% | 0 - 2,790 | *Starting rate 10% | 0 - 2,880 |
| Basic rate 20% | 0 - 32,010 | Basic rate 20% | 0 - 31,865 |
| Higher rate 40% | 32,010 - 150,000 | Higher rate 40% | 31,866 - 150,000 |
| Additional rate 50% | Over 150,000 | Additional rate 50% | Over 150,000 |
The rates available for dividends for the 2014-15 tax year is the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate, and the additional rate of 37.5 per cent.
Corporation Tax Rates
| Band | Corporation tax profits 2013-14 (£) | Corporation tax profits 2014-15 (£) |
|---|---|---|
| 0 - 300,000 | 20% | 20% |
| 300,001 - 1,500,000 | Marginal relief | Marginal relief |
| 1,500,001 or more | 23% | 21% |
National Insurance Rates
| 2013-14 | 2014-15 | |
|---|---|---|
| Primary threshold | £149 per week | £153 per week |
| Secondary threshold | £148 per week | £153 per week |
| Employees’ primary class 1 rate on earnings between primary threshold and upper earnings limit | 12% of £149.01 to £797 per week 2% above £797 per week | 12% of £153.01 to £805 per week 2% above £805 per week |
| Employers’ secondary Class 1 rate | 13.8% on earnings above £148 per week | 13.8% on earnings above £153 per week |
| Class 4 rate | 9% of £7,755 to £41,450 per year 2% above £41,450 per year | 9% of £7,956 to £41,865 per year 2% above £41,865 per year |
| Class 4 lower profits limit | £7,755 per year | £7,956 |
| Class 4 upper profits limit | £41,450 per year | £41,865 |
For further rates and allowances and historic tables see HMRC.