A. A. BALLANTYNE ACCOUNTANTS
Tax Rates

Income tax personal allowances

 

2013-14

2014-15

Personal allowance1

£9,440

£10,000

Personal allowance for people aged 65-741

£10,500

£10,500

Personal allowance for people aged 75 and over1

£10,660

£10,660

Married couple's allowance for people aged 75 and over2

£7,915

£8,165

Income limit for age-related allowances3

£27,000

£26,100

  1. The personal allowance is reduced by £1 for every £2 that an individual's adjusted net income exceeds £100,000.
  2. The married couple's allowance only applies where at least one of the partners (in a marriage or civil partnership) was born before 6 April 1935. 
  3. Age-related allowances are reduced by £1 for every £2 an individual's income exceeds the income limit, until the personal allowance for under 65's is reached.

Bands of taxable earned income4, 5

 

2013-14

2014-15

Basic rate 20%

£0 - £32,010

£0 - £31,865

Higher rate 40%

£32,011 - £150,000

£31,866 - £150,000

Additional rate 50%

Over £150,000

Over £150,000

  1. The table shows bands of earnings in excess of an individual's personal allowance.
  1. The tax rate is only 10% on savings income where such income falls within the first £2,880 (£2,790 in 2013-14) of taxable income.

Corporation tax

Corporation tax

 

2012-13

2013-14

Main tax rate6

24%

23%

Small profits rate7

20%

20%

Marginal Relief Lower Limit

£300,000

£300,000

Marginal Relief Upper Limit

£1,500,000

£1,500,000

Employees' National Insurance contributions

 

2013-14

2014-15

NI rate

12%

12%

Weekly earnings between the primary threshold and the upper earnings limit9

£149 - £770

£153 - £805

NI rate on earnings above the upper earnings limit

2%

2%

Contracted-out rebate10

1.4%

1.4%

 

Employers' National Insurance contributions

 

2013-14

2014-15

NI rate

13.8%

13.8%

Weekly earnings at or above11

£149

£153

Salary-related contracted-out rebate10

3.4%

3.4%

Money purchase contracted-out rebate12

NIL

Nil

  1. The threshold above which employees begin to pay Class 1 contributions is increased in line with the Consumer Price Index.
    1. Rebate applies to earnings between £111 (lower earnings limit) and £805 (upper accrual point) per week for 2014-15.
    2. The threshold for Class 1 employer contributions will rise by the equivalent of Retail Price Index for the course of this Parliament.
    3. Contracting out on a money purchase basis will be abolished from 6 April 2012.

Self-employed National Insurance contributions

 

2013-14

2014-15

Class 2 small earnings exception

£5,725

£5,885

Class 2 rate (per week)13

£2.70

£2.75

Class 4 lower profits limit13

£7,755

£7,965

Class 4 rate between lower and upper profits limits

9%

9%

Class 4 upper profits limit

£41,450

£41,865

Class 4 rate on profits in excess of upper profits limit

2%

2%

  1. These amounts will increase in line with the Consumer Price Index.

Basic State pension

Weekly basic State pension entitlement

 

2013-14

2014-15

Single pensioner

£110.15

£113.1014

Married couple

£176.15

£180.9014



Capital Gains Tax

 

2013-14

2014-15

Standard rate applicable where income and chargeable gains are below the upper limit of the income tax basic rate band

18%

18%

Higher rate applicable where income and chargeable gains are above the upper limit of the income tax basic rate band & for trustees

28%

28%

Annual exempt amount for individuals

£11,000

£11,100

Entrepreneurs' relief effective rate

10%

10%

Annual exempt amount for trustees

£5,450

£5,550

Entrepreneurs' relief lifetime limit of gains

£10,000,000

£10,000,000

Inheritance tax

 

2013-14

2014-15

Rate

40%

40%

Individual nil-rate band17

£325,00018

£325,000

  1. A reduced rate of inheritance tax will apply where at least 10% of the net estate is left to charity.
    1. Any unused inheritance tax nil-rate band is transferable to a spouse or civil partner.
    2. The nil-rate band will be frozen until 2015-16.

Value Added Tax (VAT)

VAT

 

2013-14

2014-15

Standard rate

20%

20%

Individual savings accounts (ISAs)

ISA maximum limits

 

2013-14

2014-15

Cash

£5,760

£5,94019

Stock and shares (overall limit)

£11,520

£11,8801



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