Tax 2014/2015

Income Tax Rates

Rate on taxable income

Band, £(GBP)

Rate,%

Starting savings rate

 0 - £2,880

  10*

Basic rate

 Up to £31,865

  20**

Higher rate

 £31,866 - £150,000

  40***
Additional rate  over £150,000   45****

* Starting savings rate is available for savings income only. The rate 10% is not available if taxable non-savings income exceeds £2,880.
** except dividends (10%)
*** except dividends (32.5%)
**** except dividends (37.5%)

Allowances and Reliefs

 

£ (GBP)

Personal allowance for people born after 5 April 1948

10,000

Income limit for personal allowance

100,000

Personal allowance for people born between 6 April 1938 and 5 April 1948

10,500

Personal allowance for people born before 6 April 1938

10,660

Married couple's allowance before 6 April 1935

Married couple's allowance maximum amount

8,165

Married couple's allowance minimum amount

3,140

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

27,000

Blind person's allowance

2,230 

Corporation Tax

Taxable profit £ (GBP)s

Small businesses (0 - 300,000)

20%

300,001 - 1,500,000

1/400 fraction

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

21%

Capital Allowances

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

£500,000

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 less than or equal to 95g/km

100%

Vehicles with emissions between 96g/km and 130g/km

18

Vehicles with emissions over 130g/km

8

Capital Gains Tax

Higher rate taxpayers

28%

Standard rate taxpayers

18%

Rates for trustees and personal representatives

28%

Individual annual exemption 

£11,000

Trusts annual exemption 

£5,500

Entrepreneurs’ relief life time limit

£10,000,000

Entreprenuers' rate

10%

Individual Savings Accounts (ISAs) Between 6 April 2014 and 1 July 2014

Max annual contributions – Total overall annual investment limit

£11,880

Comprising - Cash up to £5,940 max, Balance in stock and shares £5,940 max

Individual Savings Accounts (ISAs) After 1 July 2014

Max annual contributions – Total overall annual investment limit

£15,000

a combination of amounts between a Cash and Stocks and Shares NISA, up to the overall annual limit of £15,000

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

£81,000

Annual Turnover Limits for de-registration

£79,000

National Insurance Contributions

Weekly earnings £(GBP)

Not contracted out

Class I (employment) Employee’s rate


Up to 153

Nil

153.01 to 805

12%

Earnings over 805

2%

Employment allowance, per employer, per year

£2,000

Employer’s rates  

 

Up to 153

Nil

Above 153

13,8%

Class 2

Annual small earning exception is £5,885 per year
Class 2 rate per week is
£2.75

 

Class 4

Lower annual earnings limit is £7,956

 

Upper annual earnings limit is £41,865

 

Class 4 rate between lower and upper earnings limit

9%

Class 4 rate above upper earnings limit

2%

Stamp Duty. After 4th December 2014 the new rates are.

Residential 

£125,000 or less

Nil (*a)

£125,001-250,000 

1% (*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 £500,000 purchased by companies

15%

Non-residential

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

Nill

 £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 disadvantaged area

Annual Tax on Enveloped Dwellings

Property value is from £2 million to £5 million

£15,400

Property value is from £5 million to £10 million

£35,900

Property value is from £10 million to £20 million

£71,850

Property value is above £20 million

£143,750

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