| Income Tax Allowances |
| Personal allowance | 2013/14 £ |
2012/13 £ |
| General | 9,440 | 8,105 |
| Income limit | 100,000 | 100,000 |
| Born after 5.4.1938 but before 6.4.1948 | 10,500 | – |
| Born before 6.4.1938 | 10,660 | – |
| Aged 65-74 | – | 10,500 |
| Aged 75 or over | – | 10,660 |
| Age allowance income limit | 26,100 | 25,400 |
| Minimum where income exceeds age limit (subject to general income limit) | 9,440 | 8,105 |
| Married couple’s allowance1 (relief at 10%) Either partner born before 6.4.1935 Age allowance income limit Minimum where income exceeds limit |
7,915 26,100 3,040 |
7,705 25,400 2,960 |
| Blind person’s allowance | 2,160 | 2,100 |
| 1 Available for civil partners |
| Income Tax Rates |
| Taxable Income (£) | Rate (%) |
| 2013/14 0-32,010 |
20 |
| 32,011 – 150,000 | 40 |
| Over 150,000 | 45 |
| 2012/13 0-34,370 |
20 |
| 34,371-150,000 | 40 |
| Over 150,000 | 50 |
| Savings income is generally treated as the highest part of total income. A 10% starting rate, for saving income only, applies to the extent that such income falls within the first £2,790 of taxable income (£2,710 for 2012/13). If taxable non-saving income exceeds this limit, the 10% rate does not apply. Income from dividends is taxed at 10% within the starting and the basic rate bands, at 32.5 % in the higher rate band and at 37.5 % thereafter (these rates are applied to the dividend grossed-up by a tax credit of 1/9). |
| National Insurance Contributions |
| 2013/14 |
| Class 1 (Earnings related) | Not contracted out | Contracted Out |
| Employees Weekly earnings |
| First £149 | Nil | Nil |
| £149.01- £770 | 12% | 10.6% |
| £770.01- £797 | 12% | 12% |
| Over £797 | 2% | 2% |
| Employers Weekly earnings |
| First £148 | Nil | Nil |
| £148.01- £770 | 13.8% | 10.4% |
| Over £770 | 13.8% | 13.8% |
| Employees’ rates are reduced to 5.85% for married women with valid certificates of election but the 2% rate above £797 still applies. Rates are nil for employees over state pensionable age. Normal employers’ contributions are still payable. Employers also receive a rebate of 3.4% for salary – related schemes on earnings from £109 to £148 per week. A rebate of 1.4% on earnings from £109 to £149 per week is given to employees (or employers where insufficient contributions have been paid for offset). Contracting out is abolished for money purchase schemes from 6 April 2012. Class 1A and Class 1B – 13.8% Class 2 (Self-employed) – Flat rate £2.70 a week. Small earnings exemption £5,725 a year. Class 3 (Voluntary contributions) – £13.55 a week. Class 4 (Self-employed) – 9% of profits between £7,755 and £41,450 a year. 2% of profits above £41,450 a year. |
| Inheritance TaxTransfer after 5 April 2013 and before 6 April 2014 |
| Death Rates |
| Gross transfer | Rate % |
| Up to £325,0001 | Nil |
| Over £325,000 | 402 |
| 1Unused nil rate band is transferable to spouse or civil partner. 236% where 10% or more of the net estate is left to charity. Chargeable lifetime transfers are initially charged at 20%. Annual gift of up to £3000 per donor are exempt. |
| Capital Gains Tax |
| Annual exempt amounts 2013/14 Individuals, disabled trusts, personal Representatives for year of death and Two years thereafter |
£10,900 |
| Trusts generally | 5,450 |
| Rates 2013/14 Individuals |
| Standard rate | 18% |
| Higher rate | 28% |
| Trustees and personal representatives | 28% |
| Gains to which entrepreneurs’ relief applies | 10% |
| Corporation Tax |
| Financial Year to | 31/3/2013 | 31/3/2014 |
| Full rate | 24% | 23% |
| Small profits rate | 20% | 20% |
| 20% rate limit | £300,000 | £300,000 |
| marginal relief limit | £1,500,000 | £1,500,000 |
| marginal relief fraction | 1/100 | 3/400 |
| Effective marginal rate | 25% | 23.75% |
| Stamp Taxes |
| Shares and marketable securities | 0.5%1 |
| 1 Rounded up to the nearest multiple of £5. Transactions of value £1,000 or less exempt. |
| Transfer of land and buildings (consideration paid) |
| Residential2 | Non-residential | Rate |
| £125,000 or less | £150,000 or less | Nil |
| £125,001 – £250,000 | £150,001 – £250,000 | 1% |
| £250,001 – £500,000 | £250,001 – £500,000 | 3% |
| £500,001 – £1,000,000 | Over £500,000 | 4% |
| £1,000,001 – £2,000,000 | N/A | 5% |
| Over £2,000,000 | N/A | 7%3 |
| Leases Rent (net present value) |
| Residential2 | Non-residential | Rate |
| Up to £125,000 | Up to £150,000 | Nil |
| Over £125,000 | Over £150,000 | 1% |
| 2 Different rates apply in designated disadvantaged areas for transactions effected before 6 April 2013. 3 15% if purchase by, or by a partnership including a company or collective investment scheme enveloping the property. Premiums |
| Car Benefit |
| CO2 emissions (2011/12) | % of list price |
| grams per km | Petrol | Diesel |
| 75 | 5 | 8 |
| 76- 94 | 10 | 13 |
| 95 | 11 | 14 |
| 100 | 12 | 15 |
| 105 | 13 | 16 |
| 110 | 14 | 17 |
| 115 | 15 | 18 |
| 120 | 16 | 19 |
| 125 | 17 | 20 |
| 130 | 18 | 21 |
| 135 | 19 | 22 |
| 140 | 20 | 23 |
| 145 | 21 | 24 |
| 150 | 22 | 25 |
| 155 | 23 | 26 |
| 160 | 24 | 27 |
| 165 | 25 | 28 |
| 170 | 26 | 29 |
| 175 | 27 | 30 |
| 180 | 28 | 31 |
| 185 | 29 | 32 |
| 190 | 30 | 33 |
| 195 | 31 | 34 |
| 200 | 32 | 35 |
| 205 | 33 | 35 |
| 210 | 34 | 35 |
| 215 | 35 | 35 |
| No charge applies to cars incapable of producing CO2. |
| Car Fuel Benefit |
| For 2013/14, car fuel benefit is calculated by applying the above car benefit percentage to a figure of £21, 100. |
| Tax-Free Mileage Allowances |
| Employee’s own vehicle |
| Motorcars and vans | 2013/14 |
| Up to 10,000 business miles | 45p |
| Over 10,000 business miles | 25p |
| Each passenger making same trip | 5p |
| Motorcycles | 24p |
| Cycles | 20p |
| Advisory fuel rates for company car from 1 March 2013 |
| Cylinder capacity | Petrol | Diesel | LPG |
| Up to 1,400cc | 15p | – | 10p |
| Up to 1,600 cc | – | 13p | – |
| 1,401 cc to 2,000 cc | 18p | – | 12p |
| 1,601cc to 2,000 cc | – | 15p | – |
| Over 2,000 cc | 26p | 18p | 18p |
| Individual Savings Accounts |
| Overall | Cash | Junior ISA |
| Limit | Limit | Limit |
| 2013/14 | £ 11,520 | £ 5,760 | £ 3,720 |
| 2012/13 | £ 11,280 | £ 5,640 | £ 3,600 |
| Venture Capital Schemes |
| Investment limit | Income tax relief rate |
| Enterprise investment Scheme | £ 1,000,000 | 30% |
| Venture capital trusts | £ 200,000 | 30% |
| Seed investment scheme | £ 100,000 | 50% |
| Value Added Tax |
| Standard rate | 20% |
| Lower rate | 5% |
| Registration level from 1 April 2013 | £ 79,000 pa |
| Deregistration limit from 1 April 2013 | £ 77,000 pa |
| VAT car fuel scale charges from 1 May 2013 |
| CO2 emissions grams per km |
Quarterly returns £ |
Monthly returns £ |
| 120 | 168 | 56 |
| 125 | 253 | 84 |
| 130 | 269 | 89 |
| 135 | 286 | 95 |
| 140 | 303 | 101 |
| 145 | 320 | 106 |
| 150 | 337 | 112 |
| 155 | 354 | 118 |
| 160 | 371 | 123 |
| 165 | 388 | 129 |
| 170 | 404 | 134 |
| 175 | 421 | 140 |
| 180 | 438 | 146 |
| 185 | 455 | 151 |
| 190 | 472 | 157 |
| 195 | 489 | 163 |
| 200 | 506 | 168 |
| 205 | 523 | 174 |
| 210 | 539 | 179 |
| 215 | 556 | 185 |
| 220 | 573 | 191 |
| 225 | 590 | 196 |
| Capital Allowances |
| Dredging (straight-line basis) Writing-down allowance |
Rate%4 |
| Business premises renovation Initial allowance* |
100 |
| *Writing-down allowance for unrelieved Expenditure (straight-line basis) |
25 |
| Know-how (reducing balance basis) Writing-down allowance |
25 |
| Mineral extraction (reducing balance basis) General Acquisition of mineral asset |
25 10 |
| Patent rights (reducing balance basis) Writing-down allowance |
25 |
|
|
| Research and development Allowance |
100 |
| Registered Pension Schemes |
| Individual contributions Maximum tax-relievable contributions are the higher of:
|
| Annual allowance | £50,000 |
| Lifetime allowance | £1,500,000 |
| 2012/2013 |
| Annual allowance | £50,000 |
| Lifetime allowance | £1,500,000 |
| Any unused annual allowance can be carried forward for up to three years. |
| Tax Credits |
| Annual amounts 2013/14 Child tax credit |
£ |
| Family element | 545 |
| Child element (for each child) | 2,720 |
| Addition for disabled child | 3,015 |
| Severe disabled child enhancement | 1,220 |
| Working tax credit |
| Basic element | 1,920 |
| Lone parent and couple element | 1,970 |
| 30-hour element | 790 |
| Disability element | 2,855 |
| Severe disability element | 1,220 |
| Childcare element (up to 70% of costs) | Weekly |
| Maximum eligible cost (1 child) | 175 |
| Maximum eligible cost (2 or more) | 300 |
| Income thresholds |
| First income threshold | 6,420 |
| Eligible for child tax credit only | 15,910 |
| Withdrawal rate | 41% |
| Income rise disregard | 5,000 |
| Income fall disregard | 2,500 |
