Income tax and income tax allowances

Income tax personal allowances
2012-13 2013-14 2014-15
Personal allowance1 £8,105 £9,440 £10,000
Personal allowance for people born between
6 April 1938 and 5 April 19481
£10,500 £10,500 £10,500
Personal allowance for people born before 6
April 19381
£10,660 £10,660 £10,660
Married couple's allowance where at least
one partner was born before 6 April 19352
£7,705 £7,915 Not yet confirmed
Income limit for age-related allowances3 £25,400 £26,100 Not yet confirmed
Bands of taxable earned income 4,5
2012-13 2013-14 2014-15
Basic rate percentage 20% 20% Not yet confirmed
Basic rate £0 - £34,370 £0 - £32,010 £0 - £31,865
Higher rate percentage 40% 40% Not yet confirmed
Higher rate £34,371 - £150,000 £32,011 - £150,000 £31,866 - £150,000
Additional rate percentage 50% 45% Not yet confirmed
Additional rate Over £150,000 Over £150,000 Over £150,000
  1. The personal allowance is reduced by £1 for every £2 that an individual's adjusted net income exceeds £100,000.
  2. This also applies to civil partnerships. The allowance is reduced where the claimant has adjusted net income above the age income limit, down to a minimum level (in 2013-14) of £3,040. Tax relief on this allowance is given at a rate of 10%.
  3. Age-related allowances are reduced by £1 for every £2 an individual’s adjusted net income exceeds the income limit, until the personal allowance is reached.
  4. The table shows bands of earnings in excess of an individual’s personal allowance.
  5. The tax rate is only 10% on savings income where such income falls within the first £2,790 (in 2013-14) of taxable income.

Corporation tax

Corporation tax
2012-13 2013-14 2014-15
Main tax rate 24% 23% 21%
Small profits rate 20% 20% Not yet confirmed
Marginal Relief Lower Limit £300,000 £300,000 £300,000
Marginal Relief Upper Limit £1,500,000 £1,500,000 £1,500,000
Standard fraction (for profits between marginal relief lower limit and marginal relief upper limit) 1/100 3/400 Not yet confirmed

National Insurance contributions

Employees' National Insurance contributions
2012-13 2013-14
NI rate 12% 12%
Weekly earnings between the primary threshold
and the upper earnings limit
£146 - £817 £149 - £797
NI rate on earnings above the upper earnings limit 2% 2%
Contracted-out rebate6 1.4% 1.4%
Employers' National Insurance contributions
2012-13 2013-14
NI rate 13.8% 13.8%
Weekly earnings at or above £144 £148
Salary-related contracted-out rebate6 3.4% 3.4%
Self-employed National Insurance contributions
2012-13 2013-14
Class 2 small earnings exception £5,595 £5,725
Class 2 rate (per week) £2.65 £2.70
Class 4 lower profits limit £7,605 £7,755
Class 4 rate between lower and upper profits limits 9% 9%
Class 4 upper profits limit £42,475 £41,450
Class 4 rate on profits in excess of upper profits limit 2% 2%
  1. Rebate applies to earnings between £109 (lower earnings limit) and £770 (upper accrual point) per week for 2013-14.

Basic State pension

Weekly basic State pension entitlement
2012-13 2013-14
Single pensioner £107.45 £110.157
Married couple £171.85 £176.15
  1. For the year to September 2012 the Consumer Prices Index rose by 2.2%.  Under the ‘triple guarantee’ the basic State pension will therefore increase by 2.5% or £2.70 to £110.15 from April 2013.

State second pension

State second pension
2012-13 2013-14
Flat rate accrual if earnings over £5,564 £5,668
Flat Rate Accrual Amount £88.40 £91.00
10% on earnings between £14,701 - £40,040 £15,001 - £40,040

Pension Credit

Weekly minimum guarantee
2012-13 2013-14
Single pensioner £142.70 £145.40
Pensioner couple £217.90 £222.05

Capital Gains Tax

Capital Gains Tax
2012-13 2013-14
Standard rate applicable where income and chargeable gains
are below the upper limit of the income tax basic rate band
18% 18%
Higher rate applicable where income and chargeable gains are
above the upper limit of the income tax basic rate band & for trustees
28% 28%
Annual exempt amount for individuals £10,600 £10,900
Entrepreneurs' relief effective rate 10% 10%
Annual exempt amount for trustees £5,300 £5,450
Entrepreneurs' relief lifetime limit of gains £10,000,000 £10,000,000

Inheritance tax

Inheritance tax
2012-13 2013-14
Rate8 40% 40%
Individual nil-rate band9 £325,000 £325,000
  1. A reduced rate of inheritance tax (36%) will apply where at least 10% of the net estate is left to charity.
  2. Any unused inheritance tax nil-rate band is transferable to a spouse or civil partner.

Value Added Tax (VAT)

VAT
2012-13 2013-14
Standard rate 20% 20%

Individual Savings Accounts (ISAs)

ISA maximum limits10
2012-13 2013-14
Cash £5,640 £5,760
Stock and shares (overall limit) £11,280 £11,520
  1. The annual limit is increased in line with the Consumer Price Index rounded to be divisible by £120.

Lifetime and Annual Allowances

Allowance
2012-13 2013-14 2014-15
Lifetime allowance £1,500,000 £1,500,000 £1,250,000
Annual allowance £50,000 £50,000 £40,000