Tax Tables
Your Tax Tables With the coalition government continuing their efforts to reduce the deficit, it s more important than ever to make the most of all your available tax allowances. This booklet summarises the various rates for the tax year and will help you keep up to date with the latest changes, including: The reduced Lifetime Allowance for pensions Higher rates of stamp duty on homes worth over 2 million An increase in the tax free Personal Allowance Increased ISA allowances for both cash and stocks and shares accounts. If you would like to discuss how tax changes may affect you personally, we would be pleased to arrange a no-obligation financial review with your local Wesleyan Financial Consultant. Simply visit wesleyan.co.uk/taxtables and complete the short online form and we ll get in touch to make the arrangements. You can also download a free PDF of this booklet to store on your smartphone or tablet. Request a financial review or download your free PDF copy: wesleyan.co.uk/taxtables
Income Tax rates and taxable bands Rate Starting rate for savings: 10%* Basic rate: 20% Higher rate: 40% Additional rate: 50% 2011-2012 0-2,560 0-35,000 35,001-150,000 Over 150,000 0-2,710 0-34,370 34,371-150,000 Over 150,000 * The 10 per cent starting rate applies to savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. 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. Additional rate of income tax will reduce from 50% to 45% from 6 April 2013 Income Tax - Summary of Allowances and Reliefs Personal allowance Under 65 # Age 65-74 * Age 75 or over 2011-2012 7,475 9,940 10,090 8,105 10,500 10,660 Change 630 560 570 Married couples allowance Born on or after 6/4/1935 Age 75 or over 7,295 7,705 410 Blind person s allowance 1,980 2,100 # If income exceeds 100,000, the personal allowance is reduced by 50% of the excess until the figure is reduced to zero. * If income exceeds 25,400, the age related allowances are reduced by 50% of the excess until the figure is reduced to 2,960 in the case of the married couple s allowance; and 8,105 in the case of the personal allowance. Relief restricted to tax rate of 10%. Capital Gains Tax (individuals) 2011-2012 and Gains Up to 10,600* 10,600+ Rate 18%** on taxable gains falling within the basic rate band 28%** on taxable gains above the higher rate threshold *Each spouse is entitled to the annual exemption. ** Where entrepreneurs relief applies this reduces the rate of CGT on gains to 10% subject to the lifetime limit of 10 million. Pension Tax Relief Annual Allowance Tax relief is available on contributions of up to 100% of earnings or 3,600 if greater. An Annual Allowance tax charge will be applied at your nominal rate to recover relief given if pension input exceeds the following: 2010-2011 255,000 2011-2012 50,000 50,000
National Insurance Contributions Class 1 (Employer s) Weekly Monthly Yearly Lower Earnings Limit 107 464 5,564 Weekly contributions Contracted in Contracted out If earnings exceed earnings threshold 144 13.8% on all earnings above 144 10.4%* on earnings between 144.01 and 770, 13.8% on earnings above 770 Class 1 (Employees) Weekly Monthly Yearly Lower Earnings Limit 107 464 5,564 Primary Earnings Threshold 146 634 7,605 Upper Accrual Point (UAP) 770 3,337 40,040 Upper Earnings Limit (UEL) 817 3,540 42,475 Weekly contributions Contracted in Contracted out If earnings exceed earnings threshold 12% on earnings between 146.01 and 817 plus 2% on all earnings above 817 10.6% on earnings between 146.01 and 770, 12% on earnings between 770 and 817 plus 2% on all earnings above 817 This is only relevant for salary related pension schemes Class 2 (Self-employed) Earnings over 5,595 per annum Class 3 (Voluntary) From April 2012 2.65 per week 13.25 per week Class 4 (Self-employed, additional levy) Profi ts between 7,605 and 42,475 per annum 9% plus 2% on profi ts above 42,475
Standard Lifetime Allowance A tax charge will be made if the amount you accumulate into your pension over your lifetime exceeds the Lifetime Allowance. This is a 25% tax charge on excess benefi ts taken as income and 55% tax charge on excess benefi ts taken as a lump sum. Tax Year 2010-2011 2011-2012 Amount 1,800,000 1,800,000 1,500,000 National Insurance Benefits (per week) Single person Married person Basic State Pension 107.45 171.85 Jobseekers Allowance Age 18-24 56.25 Age 25 or over 71.00 Employment and Support Allowance Assessment phase (age 25 and over) 71.00 Main Phase Work Related Activity Group 99.15 Main Phase Support Group 105.05 Short Term Incapacity Benefi t Lower rate 74.80 Higher rate 88.55 Bereavement Payment 2,000 Widowed Parents Allowance (basic) 105.95 Widow s Pension (standard rate) 105.95 Maternity Allowance (up to 39 weeks) 135.45 Child Benefi t* First child 20.30 Second and each subsequent child 13.40 Guardian s Allowance 15.55 *From January 2013, an income tax charge will apply gradually where someone has an income of over 50,000. This charge represents a 1% reduction in Child Benefi t for every 100 earned over 50,000. Those earning more than 60,000 will no longer gain from Child Benefi t because of the tax charge.
Statutory Sick Pay Average weekly earnings Weekly rate of statutory sick pay Up to 106.99 107 and above 85.85 Statutory Maternity Pay Higher weekly rate First 6 weeks For the remaining 33 weeks 90% of employees average gross weekly earnings The lower of 90% of employees average gross weekly earnings, or 135.45 Tax efficient savings accounts Individual Savings Account (ISA) Overall limit Cash Account Stocks and shares account 2011-2012 Change 10,680 11,280 600 5,340 5,640 300 10,680 11,280 600 Junior ISA 3,600 3,600 0 Child Trust Fund (CTF) 3,600 3,600 0 Inheritance Tax Death transfers From 06/04/2012 to 05/04/2013 Gross cumulative transfer Rate Up to 325,000* 325,001 and above 40% * rate band is frozen until April 2015 after which it will increase in line with rises in the Consumer Prices Index Lifetime transfers No Inheritance Tax is chargeable on lifetime transfers. Certain gifts including gifts into and out of some trusts will be taxed at half the death rates. Gifts on or within seven years of death will be liable to tax at rates applicable at death - subject to reduction as follows: Years between gift and death 0-3 3-4 4-5 5-6 6-7 Percentage of full charge gift and death at death rates chargeable 100% 80% 60% 40% 20%
Corporation Tax 01/04/11 to 31/03/12 01/04/12 to 31/03/13 Main Rate* 26% 24% Small Profi ts Rate 20% to 300,000 20% to 300,000 Intermediate Profi ts 300,001-1,500,000 300,001-1,500,000 Standard Fraction 3/200 1/100 *The main rate of Corporation Tax is set to reduce to 23% from 01/01/13 and 22% from 01/01/14. The Starting Rate and Small Companies Rate provisions do not apply to Close Investment Holding Companies. Car Benefit Assessment Directors/Higher Paid Employee Benefi t is based on a percentage of the total list price of the car when new, including cost of accessories. There is no maximum list price. An employee s capital contribution of up to 5,000 is treated as reducing the list price. There are special rules for cars over 15 years old valued at more than 15,000. The cost of conversion of a car for use by a disabled person is disregarded. For cars first registered before 01/01/98 From 01/01/98* Engine size Percentage of list price taxable Percentage of list price taxable Non-diesel Diesel 1,400cc or less 1,401cc to 2,000cc Over 2000cc 15% 22% 32% 15% 25% 35% *Applies only to cars for which no emission data is available. 18% 28% 38% Car Fuel Scales For both diesel and non diesel fuel the taxable benefi t is the fi xed sum of 20,200 (was 18,800 for 2011/2012) multiplied by the same percentage of the list price used to calculate the car benefi t charge. Scales apply to employees earning over 8,500 and directors. Car Benefit Scales reduced by employee s contribution. Approved Mileage Allowance Payments Rate of allowance First 10,000 mls Excess over 10,000 mls All cars 45p 25p Each passenger 5p 5p Motorcycles 24p 24p Bicycles 20p 20p
Company Car Benefit in Kind (BIK) Charges Cars first registered on or after 01/01/98 - Diesel fuelled Vehicle CO2 Vehicle CO2 Vehicle CO2 g/km % g/km % g/km % 0 (EV) 0 135-139 21 190-194 32 1-75 8 140-144 22 195-199 33 76-94 13 145-149 23 200-204 34 95-99 13 150-154 24 205-209 35 100-104 14 155-159 25 210-214 35 105-109 15 160-164 26 215-219 35 110-114 16 165-169 27 220-224 35 115-120 17 170-174 28 225-229 35 121-124 18 175-179 29 230 or above 35 125-129 19 180-184 30 130-134 20 185-189 31 Cars first registered on or after 01/01/98 - Petrol fuelled Vehicle C02 g/km % Vehicle C02 g/km % Vehicle C02 g/km 0 (EV) 0 135-139 18 190-194 29 1-75 5 140-144 19 195-199 30 76-94 10 145-149 20 200-204 31 95-99 10 150-154 21 205-209 32 100-104 11 155-159 22 210-214 33 105-109 12 160-164 23 215-219 34 110-114 13 165-169 24 220-224 35 115-120 14 170-174 25 225-229 35 121-124 15 175-179 26 230 or above 35 125-129 16 180-184 27 130-134 17 185-189 28 Vehicles registered before 1st January 1998 are taxed according to engine size: Up to 1400cc, Benefi t In Kind (BIK) 15%; 1401-2000cc, BIK 22%; Over 2000cc, BIK 32%. % Stamp Duty Land Tax residential property Up to 125,000 Over 125,000 to 250,000 Over 250,000 to 500,000 Over 500,000 to 1 million Over 1 million Over 2 million Over 2 million (purchased by certain persons including corporate bodies) 2011-2012 0% 1% 3% 4% 5% 5% N/A 0% 1% 3% 4% 5% 7% 15% The stamp duty land tax on properties over 2 million was introduced from 21 March 2012. Wesleyan Assurance Society. Head Office: Colmore Circus, Birmingham, B4 6AR. Tel: 0845 351 2352. Fax: 0121 200 2971. www.wesleyan.co.uk Wesleyan Assurance Society is authorised and regulated by the Financial Services Authority. Incorporated by Private Act of Parliament (No. ZC145). Telephone calls may be recorded for monitoring and training purposes. WG-SALES-2-04/12