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UK Tax Rates & Allowances 2012/13

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

Income Tax Rates

  • First £34,370 of income - 20%
  • Next £115,630     - 40%
  • Excess over £150,000 - 50%

Note special reduced rates apply to dividend income

Personal Allowances

  • Under 65 - £8,105 (gradual withdrawal where income over £100,000)
  • 65 ~ 74 - £10,500*
  • 75 and over - £10,660*

*reduced by £1 for every £2 of income over £25,400 until the basic personal allowance of £8,105 is reached

National Insurance Contributions

  • Employee Class 1 - 12% (on income between £7,605 and £42,475, then 2% above)
  • Employer Class 1 - 13.8% (on income above £7,488pa ~ no ceiling)
  • Employer Class 1A - 13.8% (on taxable benefits)

Self-employed:

  • Class 4 - 9% (on profits between £7,605 and £42,475 then 2% of profits above)
  • Class 2 - £2.65 per week

Corporation Tax

  • Small companies rate    - 20% (on taxable profits up to £300,000)
  • Main rate - 24% (profits of £1.5 million and over)
  • Marginal rate - 25% (profits between £300,000 and £1.5 million)

Capital Gains Tax

  • Annual exemption - first £10,600 of gains
  • Up to basic rate limit - 18%
  • Above basic rate limit - 28%
  • Entrepreneurs’ rate - 10% (up to lifetime limit of £10 million gains)

Inheritance Tax

  • Nil rate band - £325,000 (per individual)
  • Annual exemption - £3,000 (per donor per year)
  • Small gifts limit - £250 (per donee per year)
  • Business property - 100% or 50% relief

Value Added Tax

  • Standard rate - 20%
  • Reduced rate - 5%
  • Registration limit - £77,000 annual taxable turnover

For a full listing of rates & allowances, including those for 2011/12 and earlier tax years, visit the following link to the HM Revenue & Customs website.

Call us today on 01633 215 544 or email us at contact@marshvision.com to find out more about the UK Tax Rates and Allowances for 2012/13