Tax Rates & Dates

Income taxOsborne

 

Tax bands and rates

2013/14

2012/13

Basic rate band

£32,010

£34,370

Basic tax rate

20%

20%

Dividend ordinary tax rate

10%

10%

Savings rate band

£2,790

£2,710

Savings rate

10%

10%

Higher rate band

£32,011 to £150,000

£34,371 to £150,000

Higher tax rate

40%

40%

Dividend higher tax rate

32.5%

32.5%

Additional rate band over

£150,000

 £150,000

Additional tax rate

45%

50%

Dividend additional tax rate

37.5%

42.5%

Allowances that reduce taxable income
Personal allowances under 65

£9,440

£8,105

65 to 74

£10,500

£10,500

75 and over

 £10,660

£10,660

Blind person’s allowance

£2,160

£2,100

Age related allowances are reduced by £1 for each £2 of income above £26,100 (2012/13 £25,400), until the minimum of £9,440 (2012/13 £8,105) is reached.The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 (2012/13 – £100,000) to £118,880 (2012/13 – £116,210).
Allowances that reduce tax
Married couple’s allowance (MCA) 79 and over (78 and over in 2012/13)

£7,915

£7,705

Tax reduction at 10%

£791.50

£770.50

The age for MCA is of the elder spouse or civil partner.The loss of tax reduction is 10p for each £2 of income above £25,400 (2012/13 £25,400) until the minimum of £304 (2012/13 £296) is reached.
All ages as at 5 April 2014 (5 April 2013 for 2012/13).
Non domicile charge
Charge for adult non UK domiciliary – applies after UK residence in seven or
more of the previous tax years

£50,000

£50,000

Tax shelters
Enterprise Investment Scheme (EIS) up to

£1,000,000

£1,000,000

Maximum amount for EIS carry back

£50,000

£50,000

Income tax relief rate

30%

30%

Seed Enterprise Investment Scheme (SEIS)

£100,000

£100,000

Venture Capital Trust

£200,000

£200,000

VCT tax relief rate

30%

30%

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 rate – registered

20%

20%

Higher rate – not registered

30%

30%

Corporation tax

Corporation tax rates and bands are as follows:

Financial year to

31 March 2014

31 March 2013

Taxable profits    
First £300,000

20%

20%

Next £1,200,000

23.75%

25%

On profits over £1,500,000

23%

24%

Tax credit on dividends

10%

10%

Marginal relief fraction

3/400

1/100

 

Corporation tax payable

For small and medium sized companies

  • Nine months and one day after the end of the accounting period

For large companies

  • Instalments
    • The 14th day of the seventh, tenth, 13th and 16th months after the commencement of a 12 month accounting period
  • Balance
    • Nine months and one day after the end of the accounting period

2014 and beyond

Main rate

Small profits rate

Financial year to 31 March 2015

21%

20%

Financial year to 31 March 2016

20%

20%

 

Tax-free allowances for Capital Gains Tax

 

The annual tax-free allowance (known as the Annual Exempt Amount) allows you to make a certain amount of gains each year before you have to pay tax.

Nearly everyone who is liable to Capital Gains Tax gets this tax-free allowance.

There’s one Annual Exempt Amount for:

  • most individuals who live in the UK
  • executors or personal representatives of a deceased person’s estate
  • trustees for disabled people

Most other trustees get a lower Annual Exempt Amount.

Annual Exempt Amounts
Customer group 2011 – 12 2012 – 13 2013 – 14
Individuals, personal representatives and trustees for disabled people £10,600 £10,600 £10,900
Other trustees £5,300 £5,300 £5,450