Loading...

TAX RATES & ALLOWANCES 2013/14

Below is a useful summary of the most important tax rates and allowances for the current tax year.

Income Tax Rates

  • First £32,010 of taxable income
  • Next £117,990
  • Excess over £150,000

20%
40%
45%

The equivalent rates applicable to dividends are a 10% ordinary rate, a 32.5% dividend upper rate and a dividend additional rate of 37.5% (less a deductible 10% tax credit in each case)

Personal Allowances

  • Individuals born after 5 April
  • Individuals born between 6 April 1938 and 5 April 1948
  • Individuals born before 6 April 1938

£9,440
£10,500*
£10,660*

Note the Personal Allowance reduces where total income is above £100,000 by £1 for every £2 of income above the £100,000 limit which applies irrespective of age.

*These age-related allowances, frozen at their 2012/13 levels, are reduced by £1 for every £2 of income above £26,100 until the basic personal allowance of £9,440 is reached.

National Insurance Contributions

  • Employee Class 1
  • Employer Class 1
  • Employer Class 1A

12% (on income between £7,755pa and £41,450pa, then 2% above)
13.8% (on income above £7,696pa ~ no ceiling)
13.8% (on employee taxable benefits)

Self-employed:

  • Class 4
  • Class 2

9% (on profits between £7,755 and £41,450, then 2% of profits above)
£2.70 per week (small earnings exception £5,725pa)

Corporation Tax

  • Small companies rate
  • Main rate
  • Marginal rate

20% (on taxable profits up to £300,000)
23% (profits of £1.5 million and over)
23.75% (profits between £300,000 and £1.5 million)

Capital Allowances

Annual investment allowance:
First £250,000
Main pool
Special rate pool


100% of qualifying expenditure (1 Jan 2013 to 31 Dec 2014)
18% writing down allowance
8% writing down allowance

Capital Gains Tax

  • Annual exemption
  • Up to basic rate limit
  • Above basic rate limit
  • Entrepreneurs’ rate
  • Chattel exemption

First £10,900 of gains
18%
28%
10% (up to lifetime limit of £10 million gains)
£6,000 (per item)

Inheritance Tax

  • Nil rate band
  • Annual exemption
  • Marriage exemption
  • Small gifts limit
  • Business property

£325,000 per individual (frozen until April 2019)
£3,000 (per donor per year)
£1,000 ~ £5,000 (depending upon recipient’s relationship
with donor)
£250 (per donee per year)
100% or 50% relief

Value Added Tax

  • Standard rate
  • Reduced rate
  • Registration limit
  • De-registration limit
  • Flat rate scheme
  • Cash accounting scheme
  • Annual accounting scheme

20%
5%
£79,000 annual taxable turnover
£77,000
£150,000 turnover limit
£1,250,000 turnover limit
£1,250,000 turnover limit

2012/13 Tax Year

For a listing of rates & allowances for earlier tax years visit the following link of the HM Revenue & Customs website: http://www.hmrc.gov.uk/rates/index.htm