TAX FACTS 2013/2014

Income Tax Rates

Rate on taxable income

Band, £(GBP)

Rate,%

Starting savings rate 0 - £2,790 10*
Basic rate 32,010 20**
Higher rate £150,000 40***
Additional rate £150,000 45****
* Starting savings rate is available for savings income only. The rate 10% is not available if taxable non-savings income exceeds £2,790.
** except dividends (10%)
*** except dividends (32.5%)
**** except dividends (37.5%)

Allowances and Reliefs

£ (GBP)

Personal allowance for people born after 5 April 1948

9,440

limit for personal allowance (born after 5 April 1948)

100,000

for people born between 6 April 1938 and 5 April 1948

10,500

for people born before 6 April 1938

10,660

Married couple's allowance

Married couple's allowance aged 75 and over

7,915

Married couple's allowance minimum amount

3,040

Income Limit for personal allowances (born before 6 April 1948)

26,100

Blind person's allowance

2,160

Corporation Tax

Taxable profit £ (GBP)s

Small businesses (0 - 300,000)

20%

300,001 - 1,500,000

3/400 fraction

Main rate for businesses (over 1,500,000)

23%

Capital Allowances

Annual investment allowance on new purchase of plant and machinery (increase for two years from 01/01/2013)

£250,000

First year allowance for business expenditure on new low rate (110g/km) emission vehicles

100%

Writing-down allowances

%

Integral features

8

Long Life assets

8

Other plant and machinery

18

Industrial/agricultural buildings

Nil

Vehicles with emissions between 110g/km and 160g/km

18

Vehicles with emissions over 160g/km

8

Capital Gains Tax

Higher rate taxpayers

28%

Standard rate taxpayers

18%

Rates for trustees and personal representatives

28%

Individual annual exemption

£10,900

Trusts annual exemption

£5,450

Entrepreneurs’ relief life time limit

£10,000,000

Entreprenuers' rate

10%

Individual Savings Accounts (ISAs)

annual contributions – Total overall annual investment limit

£11,520

Comprising - Cash up to £5,760 max, Balance in stock and shares £p5,760 max

VAT

Standard Rate

20%

Lower Rate

5%

Zero Rate

0%

Annual Turnover Limits for registration - last 12 months or if turnover is going to exceed within the next 30 days

£ 79,000

Annual Turnover Limits for de-registration

£ 77,000

National Insurance Contributions

Weekly earnings £(GBP)

Not contracted out

Class I (employment) Employee’s rate

Up to 149

Nil

149.01 to 797 12%

Earnings over 797

2%

Employer’s rates

Up to 148

Nil

Above 148 13.8%

Class 2

Annual small earning exception is £5,725 per year

Class 2 rate per week is £2.70

Class 4

Lower annual earnings limit is £7,755

Upper annual earnings limit is £41,450
Class 4 rate between lower and upper earnings limit is 9%
Class 4 rate above upper earnings limit is 2%

Stamp Duty

Residential

£125,000 or less

Nil (*a)

£125,001-250,000

(*a)

£250,001-500,000

3%

£500,001-1,000,000

4%

£1,000,001-2,000,000 5%
Over £2,000,000 7%
Over £2,000,000 purchased by companies** 15%

Non-residential

£150,000 or less - annual rent less than 1,000

Nil

£150,000 or less - annual rent 1,000 or more 1%

£150,001 – 250,000

1%

£250,001-500,000

3%

Over £500,000

4%

Shares and Securities

Standard rate - 0.5%, higher rate - 1.5%


* (a) £150,000 for property in disavantaged area

**Budget 2012 also announced a 15 per cent rate charge of stamp duty land tax on certain non-natural persons enveloping a residential property where the consideration given exceeds £2million. Where the interest/property with a consideration in excess of £2 million is purchased in sole or joint names then a 15 per cent rate SDLT charge will apply to the following:

• all such purchases by bodies corporate (largely companies);
• all collective investment schemes; and
• all partnerships where there are one or more members are one of the above.

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