Income Tax Income Tax allowances table Income Tax allowances 2011-12 2012-13 2013-14 Personal Allowance (1) 7,475 8,105 N/A Personal Allowance for people born after 5 April 1948 (1) N/A N/A 9,440 Income limit for Personal Allowance 100,000 100,000 100,000 Personal Allowance for people aged 65-74 (1)(2) 9,940 10,500 N/A Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2) N/A N/A 10,500 Personal Allowance for people aged 75 and over (1)(2) Personal Allowance for people before 6 April 1938 (1) (2) 10,090 10,660 N/A N/A N/A 10,660 Married Couple's Allowance (born before 6th April 1935 and aged 75 and over) (2) (3) 7,295 7,705 7,915 Income limit for age-related allowances Income limit for the allowances for those born before 6 April 1948 Minimum amount of Married Couple's Allowance Blind Person's Allowance 24,000 25,400 N/A N/A N/A 26,100 2,800 2,960 3,040 1,980 2,100 2,160 1. 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. 2. 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. 3. Tax relief for the Married Couple's Allowance is given at the rate of 10 per cent.
Income Tax rates and taxable bands Income Tax rates and taxable bands Rate 2011-12 2012-13 2013-14 Starting rate for savings: 10%* 0-2,560 0-2,710 0-2,790 Basic rate: 20% 0-35,000 0-34,370 0-32,010 Higher rate: 40% 35,001-150,000 34,371-150,000 32,011-150,000 Additional rate: 50% Over 150,000 Over 150,000 N/A 45% from 6 April 2013 N/A N/A Over 150,000 * The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits. The rates available for dividends are the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate and the dividend additional rate of 42.5 per cent (the dividend additional rate is 37.5 per cent from 2013-14).
National Insurance Contributions National Insurance contributions - rates and allowances per week 2011-12 2012-13 2013-14 Lower earnings limit, primary Class 1 Upper earnings limit, primary Class 1 Upper accrual point Primary threshold Secondary threshold Employees' primary Class 1 rate between primary threshold and upper earnings limit 102 107 109 817 817 797 770 770 770 139 146 149 136 144 148 12% 12% 12% Employees' primary Class 1 rate above upper earnings limit 2% 2% 2% Class 1A rate on employer provided benefits (1) Employees' contracted-out rebate (for contracted-out salary related schemes only) Married women's reduced rate between primary threshold and upper earnings limit Married women's rate above upper earnings limit Employers' secondary Class 1 rate above secondary threshold Employers' contracted-out rebate, salary-related schemes 13.8% 13.8% 13.8% 1.6% 1.4% 1.4% 5.85% 5.85% 5.85% 2% 2% 2% 13.8% 13.8% 13.8% 3.7% 3.4% 3.4% Employers' contracted-out rebate, money-purchase 1.4% Abolished from 6 N/A
National Insurance contributions - rates and allowances per week 2011-12 schemes 2012-13 2013-14 April 2012 Class 2 rate 2.50 2.65 2.70 Class 2 small earnings exception 5,315 per year 5,595 per year 5,725 per year Special Class 2 rate for share fishermen Special Class 2 rate for volunteer development workers Class 3 rate 3.15 3.30 3.35 5.10 5.35 5.45 12.60 13.25 13.55 Class 4 lower profits limit 7,225 per year 7,605 per year 7,755 per year Class 4 upper profits limit 42,475 per year 42,475 per year 41,450 per year Class 4 rate between lower profits limit and upper profits limit Class 4 rate above upper profits limit Additional primary Class 1 percentage rate on deferred employments Additional Class 4 percentage rate where deferment has been granted 9% 9% 9% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1. 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 for financial years starting on 1 April Rate 2011 2012 2013 2014 Small profits rate* 20%* 20%* 20%* Small profits rate can be claimed by qualifying companies with profits at a rate not exceeding 300,000 300,000 300,000 Marginal Relief Lower Limit 300,000 300,000 300,000 Marginal Relief Upper Limit 1,500,000 1,500,000 1,500,000 Standard fraction 3/200 1/100 3/400 Main rate of Corporation Tax* 26%* 24%* 23%* 21%* Special rate for unit trusts and openended investment companies 20% 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. Ring fence companies *For companies with ring fence profits (income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf) these rates differ. The small profits rate of tax on those profits is 19 per cent and the ring fence fraction is 11/400 for financial years starting 1 April 2011, 2012 and 2013. The main rate is 30 per cent for financial years starting on 1 April 2011, 2012 and 2013. Corporation Tax on chargeable gains Indexation Allowance allows for the effects of inflation when calculating the chargeable gains of companies or organisations.
Capital Gains Tax 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 Individuals, personal representatives and trustees for disabled people 10,600 10,600 Other trustees 5,300 5,300 You can use your Annual Exempt Amount against the gains charged at the highest rates to minimise the tax you owe. See the section on 'Rates for Capital Gains Tax' below for an example. Executors and personal representatives If you're acting as an executor or personal representative for a deceased person's estate, you may get the full Annual Exempt Amount during the 'administration period'. The administration period is usually the time it takes to settle the deceased person's affairs and get a grant of probate (or confirmation in Scotland). You're entitled to the Annual Exempt Amount for the tax year in which the death occurred and the following two tax years. After that there's no tax-free allowance against gains during the administration period. Trustees for disabled people If you're acting as a trustee for a disabled person you use the higher Annual Exempt Amount above - and not the rate for 'other trustees'. A disabled person in this context is a person who has mental health problems or receives the middle or higher rate of Attendance Allowance or Disability Living Allowance. People who are 'non-domiciled' in the UK You won't get the Annual Exempt Amount if you're 'non-domiciled' in the UK and you've claimed the 'remittance basis' of taxation on your foreign income and gains. You may be 'non-domiciled' in the UK, for example, if you were born in another country and intend to return there. You may have claimed the 'remittance basis' if you have income and gains from abroad and have decided that it's beneficial to be taxed on the foreign income and gains that you bring into the UK, rather than on all income and gains that arise. Issues of domicile and tax on foreign gains are complicated. A lot depends on the facts of each case. You can find out more by following the link below. Or speak to your Tax Office about your specific circumstances.
Rates for Capital Gains Tax 2011-12 and 2012-13 The following Capital Gains Tax rates apply: 18 per cent and 28 per cent tax rates for individuals (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first ) 28 per cent for trustees or for personal representatives of someone who has died 10 per cent for gains qualifying for Entrepreneurs' Relief If you're not sure how to work out your taxable income, see the examples in the section below 'Working out your Capital Gains Tax for 2012-13'. 2010-11 For gains on or before 22 June 2010 Capital Gains Tax is charged at a flat rate of 18 per cent. For capital gains made from 23 June 2010 to 5 April 2011 The following Capital Gains Tax rates apply to gains after this date: 18 per cent and 28 per cent tax rates for individuals (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first ) 28 per cent for trustees or for personal representatives of someone who has died 10 per cent for gains qualifying for Entrepreneurs' Relief 2009-10 and 2008-09 Capital Gains Tax is charged at a flat rate of 18 per cent Working out your Capital Gains Tax for 2012-13 You need to work out your total taxable income before working out which Capital Gains Tax rate to use. 1. First work out your taxable income by deducting any tax-free allowances and reliefs that you are entitled to. 2. Next see how much of your basic rate band is already being used against your taxable income. The basic rate band for 2012-13 is 34,370. 3. Allocate any remaining basic rate band first against gains that qualify for Entrepreneurs' Relief - these are charged at 10 per cent. 4. Next allocate any remaining basic rate band against your other gains, these are charged at 18 per cent. 5. Any remaining gains above the basic rate band are charged at 28 per cent.
Inheritance Tax thresholds The Inheritance Tax threshold (or 'nil rate band') is the amount up to which an estate will have no Inheritance Tax to pay. If the estate - including any assets held in trust and gifts made within seven years of death - is more than the threshold, Inheritance Tax will be due at 40 per cent on the amount over the nil rate band. From 6 April 2012 people who leave 10 per cent or more of their net estate to charity can choose to pay a reduced rate of Inheritance Tax of 36 per cent. This page shows the different thresholds in use for deaths going back to 1914. Inheritance Tax thresholds - present day back to 18 March 1986 From To Threshold/nil rate band 6 April 2009 5 April 2015 325,000 6 April 2008 5 April 2009 312,000 6 April 2007 5 April 2008 300,000 6 April 2006 5 April 2007 285,000 6 April 2005 5 April 2006 275,000 6 April 2004 5 April 2005 263,000 6 April 2003 5 April 2004 255,000 6 April 2002 5 April 2003 250,000 6 April 2001 5 April 2002 242,000 6 April 2000 5 April 2001 234,000 6 April 1999 5 April 2000 231,000 6 April 1998 5 April 1999 223,000 6 April 1997 5 April 1998 215,000 6 April 1996 5 April 1997 200,000 6 April 1995 5 April 1996 154,000 10 March 1992 5 April 1995 150,000 6 April 1991 9 March 1992 140,000 6 April 1990 5 April 1991 128,000 6 April 1989 5 April 1990 118,000 15 March 1988 5 April 1989 110,000 17 March 1987 14 March 1988 90,000 18 March 1986 16 March 1987 71,000
Stamp Duty Land Tax rates and thresholds Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction. The tax rate and payment threshold can vary according to whether the property is in residential or nonresidential use, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction. This guide provides an overview of the SDLT rates and provides links to related guidance where necessary. SDLT rates for residential property The table below applies for all freehold residential purchases and transfers and the premium paid for a new lease or the assignment of an existing lease. (If the property will be used for both residential and nonresidential purposes the rates differ - please see the section 'SDLT for non-residential or mixed use property'). New leases If the transaction involves the purchase of a new lease with a substantial rent there may be an additional SDLT charge to that shown below, based on the rent. See the next section and further table 'SDLT on rent for new leasehold properties (residential)' for more detail. Residential land or property SDLT rates and thresholds Purchase price/lease premium or transfer value SDLT rate Up to 125,000 Zero Over 125,000 to 250,000 1% Over 250,000 to 500,000 3% Over 500,000 to 1 million 4% Over 1 million to 2 million 5% Over 2 million from 22 March 2012 7% Over 2 million (purchased by certain persons including corporate bodies) from 21 March 2012 If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid. For example, a house bought for 130,000 is charged at 1 per cent, so 1,300 must be paid in SDLT. A house bought for 350,000 is charged at 3 per cent, so SDLT of 10,500 is payable. 2 million threshold for wholly residential property 15% From 22 March 2012 SDLT on residential properties over 2 million is charged at 7 per cent It does not apply to non-residential or mixed-use properties. If you exchanged contracts before the higher rate came into force on 22 March 2012) the 5 per cent rate will apply.
Higher rate for corporate bodies From 21 March 2012 SDLT is charged at 15 per cent on interests in residential dwellings costing more than 2 million purchased by certain non-natural persons. This broadly includes bodies corporate, for example companies, collective investment schemes and all partnerships with one or more members who are either a body corporate or a collective investment scheme. There are exclusions for companies acting in their capacity as trustees for a settlement and property developers who meet certain conditions. If you exchanged contracts before the higher rate charge came into force on 21 March 2012, the 5 per cent rate will apply. Annual Tax on Enveloped Dwellings is a tax payable by companies on high value residential property (a dwelling). It will start on 1 April 2013 and will be payable each year. Properties bought in a disadvantaged area Disadvantaged Areas Relief will be abolished for transactions with an effective date on or after 6 April 2013. All claims to this relief must be made on or before 5 May 2014. Claims made after that date will not be accepted. If the property is in an area designated by the government as 'disadvantaged' a higher threshold of 150,000 applies for residential properties. Disadvantaged areas - residential land or property SDLT rates and thresholds Purchase price/lease premium or transfer value SDLT rate Up to 150,000 Zero Over 150,000 to 250,000 1% Over 250,000 to 500,000 3% Over 500,000 to 1 million 4% Over 1 million to 2 million 5% Over 2 million from 22 March 2012 7% Over 2 million (purchased by certain persons including corporate bodies) from 21 March 2012 15% SDLT on rent - new residential leasehold purchase When a new residential lease has a substantial annual rent, SDLT is payable on both of the following, which are calculated separately and then added together: the lease premium (purchase price) - see the table above the 'net present value' (NPV) of the rent payable The NPV is based on the value of the total rent over the life of the lease and can be worked out using HMRC's online calculator (link below).
SDLT on rent for new leasehold properties (residential) Net present value of rent - residential SDLT rate 0-125,000 Zero Over 125,000 1% of the value that exceeds 125,000 If six or more residential properties form part of a single transaction If six or more properties form part of a single transaction the rules, rates and thresholds for non-residential properties apply. The amounts paid for all the properties in the transaction must be added together in order to establish the rate of tax payable. SDLT rates for non-residential or mixed use properties Non-residential property includes: commercial property such as shops or offices agricultural land forests any other land or property which is not used as a dwelling six or more residential properties bought in a single transaction A mixed use property is one that incorporates both residential and non-residential elements. The table below applies for freehold and leasehold non-residential and mixed use purchases and transfers If the transaction involves the purchase of a new lease with a substantial annual rent, there may be additional SDLT charge to that shown below, based on the rent. See the later section and table for more detail. Non-residential land or property rates and thresholds Purchase price/lease premium or transfer value (non-residential or mixed use) SDLT rate Up to 150,000 - annual rent is under 1,000 Zero Up to 150,000 - annual rent is 1,000 or more 1% Over 150,000 to 250,000 1% Over 250,000 to 500,000 3% Over 500,000 4% Note that for the above purpose the annual rent is the highest annual rent known to be payable in any year of the lease, not the net present value used to determine any tax payable on the rent as described below.
SDLT on rent - new non-residential or mixed use leasehold purchase When a new non-residential or mixed use lease has a substantial annual rent, SDLT is payable on both of the following which are calculated separately and then added together: the lease premium or purchase price - see the table above the net present value of the rent payable (this is based on the value of the total rent over the life of the lease and can be worked out using HMRC's online calculators) SDLT on rent for new leasehold properties (non-residential or mixed use) Net present value of rent - non-residential SDLT rate 0-150,000 Zero Over 150,000 1% of the value that exceeds 150,000 Using the HMRC SDLT online calculators HMRC has developed online calculators which work out the amount of SDLT payable on residential, nonresidential and mixed transactions in land and property. Go to HMRC's SDLT calculators SDLT and Stamp Duty rates before 25 March 2012 Follow the links below to check SDLT and Stamp Duty rates in earlier tax years. SDLT rates from 6 April 2011 until 24 March 2012 SDLT rates from 25 March 2010 until 5 April 2011 SDLT rates from 1 January 2010 until 24 March 2010 SDLT rates 22 April 2009 until 31 December 2009 SDLT rates 3 September 2008 until 21 April 2009 SDLT rates from 12 March 2008 until 2 September 2008 SDLT rates from 23 March 2006 until 11 March 2008 SDLT rates from 17 March 2005 until 22 March 2006 SDLT rates from 1 December 2003 until 16 March 2005 Rates of Stamp Duty on land transfers before December 2003