Income Tax Rates and Allowances
| Income Tax Allowances | 2012-13 | 2013-14 |
|---|---|---|
| Personal Allowance (1) |
£0-£2,710 | £0-£2,560 |
| Personal Allowance for people born after 5 April 1948 (1) |
N/A | £9,440 |
| Income limit for Personal Allowance |
£100,000 | £100,000 |
| Personal Allowance for people aged 65-74 (1)(2) |
£10,500 |
N/A |
| Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2)
|
N/A | £10,500 |
| Personal Allowance for people aged 75 and over (1)(2) |
£10,660 | N/A |
| Personal Allowance for people before 6 April 1938 (1) (2) |
N/A | £10,660 |
| Married Couple's Allowance (born before 6th April 1935 and aged 75 and over) (2) (3) |
£7,705 | £7,915 |
| Income limit for age-related allowances |
£25,400 | N/A |
| Income limit for the allowances for those born before 6 April 1948 |
N/A | £26,100 |
| Minimum amount of Married Couple's Allowance |
£2,960 | £3,040 |
| Blind Person's Allowance |
£2,100 | £2,160 |
- The Personal Allowance reduces where the income is above £100, 000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age.
- These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. The Personal Allowance for people aged 65 and over (up to and including 2012-13) and born before 6 April 1948 (from 2013-14) can be reduced below the basic Personal Allowance where the income is above £100,000.
- Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.
National Insurance Contributions
| £ per week | 2012-13 | 2013-14 |
|---|---|---|
| Lower earnings limit, primary Class 1 |
£107 | £109 |
| Upper earnings limit, primary Class 1 |
£817 | £797 |
| Upper accrual point |
£770 | £770 |
| Primary threshold |
£146 |
£149 |
| Secondary threshold
|
£144 | £148 |
| Employees' primary Class 1 rate between primary threshold and upper earnings limit |
12% | 12% |
| Employees' primary Class 1 rate above upper earnings limit |
2% | 2% |
| Class 1A rate on employer provided benefits (1) |
13.8% | 13.8% |
| Employees' contracted-out rebate (for contracted-out salary related schemes only) |
1.4% | 1.4% |
| Married women's reduced rate between primary threshold and upper earnings limit |
5.85% | 5.85% |
| Married women's rate above upper earnings limit |
2% | 2% |
| Employers' secondary Class 1 rate above secondary threshold |
13.8% | 13.8% |
| Employers' contracted-out rebate, salary-related schemes |
3.4% | 3.4% |
| Employers' contracted-out rebate, money-purchase schemes |
Abolished from 6 April 2012 | N/A |
| Class 2 rate |
£2.65 | £2.70 |
| Class 2 small earnings exception |
£5,595 per year | £5,725 per year |
| Special Class 2 rate for share fishermen |
£3.30 | £3.35 |
| Special Class 2 rate for volunteer development workers |
£5.35 | £5.45 |
| Class 3 rate |
£13.25 | £13.55 |
| Class 4 lower profits limit |
£7,605 per year | £7,755 per year |
| Class 4 upper profits limit |
£42,475 per year | £41,450 per year |
| Class 4 rate between lower profits limit and upper profits limit |
9% | 9% |
| Class 4 rate above upper profits limit |
2% | 2% |
| Additional primary Class 1 percentage rate on deferred employments |
2% | 2% |
| Additional Class 4 percentage rate where deferment has been granted |
2% | 2% |
- Class 1A NICs are payable in July and are calculated on the value of taxable benefits provided in the previous tax year, using the secondary Class 1 percentage rate appropriate to that tax year.
Corporation Tax Rates
Rates for financial years starting on 1 April
| Rates | 2012 | 2013 | 2014 |
|---|---|---|---|
| Small profits rate* |
20%* | 20%* | |
| Small profits rate can be claimed by qualifying companies with profits at a rate not exceeding |
£300,000 | £300,000 | |
| Marginal Relief Lower Limit |
£300,000 | £300,000 | |
| Marginal Relief Upper Limit |
£1,500,000 |
£1,500,000 |
|
| Standard fraction |
1/100 | 3/400 | |
| Main rate of Corporation Tax* |
24%* | 23%* | 21%* |
| Special rate for unit trusts and open-ended investment companies |
20% | 20%* |
Main rate of Corporation Tax
The main rate of Corporation Tax applies when profits (including ring fence profits) are at a rate exceeding £1,500,000, or where there is no claim to another rate, or where another rate does not apply.
In addition to the rates set out in the above table, the main rate of Corporation Tax for 2015 is set at 20 per cent. The small profits rate will be unified with the main rate, so from 1 April 2015 there will be only one Corporation Tax rate for non-ring fence profits – set at 20 per cent.
Capital Gains Tax Rates
Annual Exempt Amounts
| Customer Group | 2011-12 | 2012-13 | 2013-14 |
|---|---|---|---|
| Individuals, personal representatives and trustees for disabled people |
£10,600 |
£10,600 |
|
| Other trustees |
£5,300 |
£5,300 |
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