Income Tax
| Income Tax Rates |
Note
|
2013/14
|
2012/13
|
| Basic rate band - income up to |
£32,010
|
£34,370
|
| Starting rate for savings |
*10%
|
*10%
|
| Basic rate |
20%
|
20%
|
| Dividend ordinary rate |
10%
|
10%
|
| Higher rate - income over |
£32,010
|
£34,370
|
| Higher rate |
40%
|
40%
|
| Dividend upper rate |
32.5%
|
32.5%
|
| Additional rate - income over |
£150,000
|
£150,000
|
| Additional rate |
45%
|
50%
|
| Dividend additional rate |
37.5%
|
42.5%
|
| * Starting rate is for savings income up to the starting rate limit of £2,790 (£2,710) within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income. |
| Trusts |
| For interest in possession trusts on all income, and other trusts on the first £1,000 of income ("standard rate band"): |
|
|
| dividend ordinary rate |
5
|
10%
|
10%
|
| savings income |
5
|
20%
|
20%
|
| other income |
5
|
20%
|
20%
|
| Income of other trusts above £1,000 is taxed at the special trust rates: |
|
|
| rate applicable to trusts |
|
45%
|
50%
|
| dividend trust rate |
|
37.5%
|
42.5%
|
| Personal allowance (PA) |
| |
Born after 5 April 1948/ under 65+ |
1,4
|
£9,440
|
+£8,105
|
| |
Born after 5 April 1938 and before 6 April 1948/ 65 to 74+ |
1,2,4
|
£10,500
|
+£10,500
|
| |
Born before 6 April 1938/ 75 and over+ |
1,2,4
|
£10,660
|
+£10,660
|
| |
Blind person's allowance |
|
£2,160
|
£2,100
|
| Married couple's allowance (MCA) |
| Either partner born before 6 April 1935 (relief restricted to 10%) |
1,3,4
|
£7,915
|
£7,705
|
| Tax Shelters |
| Enterprise Investment Scheme (EIS) up to |
|
£1,000,000
|
£1,000,000
|
| Seed Enterprise Investment Scheme up to |
£100,000
|
£100,000
|
| Venture Capital Trust (VCT) up to |
£200,000
|
£200,000
|
| Golden Handshake max. |
£30,000
|
£30,000
|
| Rent a Room - exempt on gross annual rent up to |
£4,250
|
£4,250
|
| Construction Industry Scheme deduction rate: |
|
|
| Standard (registered) |
20%
|
20%
|
| Higher (not registered) |
30%
|
30%
|
|
Notes
- Ages are as the end of the tax year.
- The higher rates of personal allowances are reduced by £1 for each £2 of excess income over £26,100 (£25,400) until the basic allowance is reached.
- Similar limits apply to the married couple's allowance. The reduction in allowance is subject to a minimum level of £3,040. (For couples married before 5 December 2005, only the husband's income is taken into account. For those married on or after 5 December 2005 or in a civil partnership, only the higher earner’s income is taken into account.)
- The personal allowance, including the minimum age-related allowance, is reduced by £1 for every £2 that net adjusted income exceeds £100,000.
- Where there are several trusts created by the same settlor, the "standard rate band" is divided equally between them, subject to a minimum band of £200 for each trust.
|
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The 1929 Building
Merton Abbey Mills
18 Watermill Way
London
SW19 2RD
Tel: 020 8542 4262
Fax: 020 8545 0662
Email us click here |
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