Rates & Allowances
| Income Tax Allowances | 2012-13 (£) |
2011-12 (£) |
| Personal allowance (under 65) (1) | 8,105 |
7,475 |
| Income limit for personal allowance (1) |
100,000 | 100,000 |
| Personal allowance for people aged 65-74 (1)(2) |
10,500 | 9,940 |
| Personal allowance for people aged 75 and over (1)(2) | 10,660 | 10,090 |
| Married couple's allowance - aged 75 and over (2) (3) | 7,705 | 7,295 |
| Income limit for age-related allowances | 25,400 | 24,000 |
| Minimum amount of married couple's allowance | 2,960 | 2,800 |
| Blind person's allowance | 2,100 | 1,980 |
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(1) - The personal allowance is gradually withdrawn by £1 for every £2 of income over £100,000. |
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(2) - These allowances reduce by £1 for every £2 of inome above the income limit for age related allowances but will never be less than the basic personal allowance or minimum amount of married couple's allowance. |
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(3) - Available to people born before 6 April 1935. Tax relief for the married couple's allowance is given at the rate of 10%. |
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| Tax Bands | 2012-13 (£) | 2011-12 (£) |
| Starting rate for savings 10% | 0 - 2,710 | 0 - 2,560 |
| Basic rate 20% | 0 - 34,370 | 0 - 35,000 |
| Higher rate 40% | 34,371 - 150,000 | 35,001 - 150,000 |
| Additional rate 50% (45% from April 2013) | over 150,000 | over 150,000 |
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If non-savings income is above the starting rate limit the 10% rate for savings will not apply. |
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Dividends are taxed at 10%, 32.5% or 42.5% as the top slice of total income. |
| National Insurance - Rates and Allowances | 2012-13 | 2011-12 |
| Lower weekly earnings limit, primary Class 1 | £107 | £102 |
| Upper weekly earnings limit, primary Class 1 | £817 | £817 |
| Upper weekly accruals point | £770 | £770 |
| Primary weekly earnings threshold | £146 | £139 |
| Secondary weekly earnings threshold | £144 | £136 |
| Employees' primary Class 1 rate between primary earnings threshold and upper earnings limit | 12% | 12% |
| Employees' primary Class 1 rate above upper earnings limit | 2% | 2% |
| Employees' contracted-out rebate between primary earnings threshold and upper earnings limit | 1.40% | 1.60% |
| Married women's reduced rate between primary earnings threshold and upper earnings limit | 5.85% | 5.85% |
| Married women's rate above upper earnings limit | 2% | 2% |
| Employers' secondary Class 1 rate above secondary earnings threshold | 13.80% | 13.80% |
| Employers' contracted-out rebate, final salary-related schemes | 3.40% | 3.70% |
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Employers' contracted-out rebate, money purchase schemes |
Abolished from 6 April 2012 |
1.40% |
| Class 2 weekly rate | £2.65 | £2.50 |
| Class 2 small earnings exception | £5,595 per year | £5,315 per year |
| Special Class 2 weekly rate for share fishermen | £3.30 | £3.15 |
| Special Class 2 weekly rate for volunteer development workers | £5.35 | £5.10 |
| Class 3 voluntary weekly rate | £13.25 | £12.60 |
| Class 4 lower profits limit | £7,605 per year | £7,225 per year |
| Class 4 upper profits limit | £42,475 per year | £42,475 per year |
| Class 4 rate between lower profits limit and upper profits limit | 9% | 9% |
| Class 4 rate above upper profits limit | 2% | 2% |
| Capital Gains Tax: Individuals and Trustees | 2012-13 (£) | 2011-12 (£) |
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Annual exempt amount Individuals Trusts |
10,600 5,300 |
10,600 5,300 |
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Rates Standard rate taxpayers Higher rate taxpayers / Trustees |
18% 28% |
18% 28% |
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Limit for gains subject to entrepreneurs' relief (2) Entrepreneurs' rate |
10,000,000 10% |
10,000,000 10% |
| Inheritance Tax | 2012-13 | 2011-12 |
| Nil rate band for individuals (1) | £325.000 | £325.000 |
| Thereafter - lifetime gifts (2) | 20% | 20% |
| - lower rate on death (3) | 36% | n/a |
| - on death | 40% | 40% |
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(1) Unused nil rate band can be used by surviving spouse or civil partner |
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(2) Increased to 40%, subject to tapering relief, on gifts made between 3 and 7 years pre death. Certain lifetime gifts are exempt. Special rules for Business property. |
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(3) From 6th April 2012, a reduced rate of inheritance tax of 36% applies where 10% or more of the net estate is left to charity. |
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Corporation Tax |
FY 2012 | FY2011 |
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Main rate on Profits above |
24% £1.5m |
26% £1.5m
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Small companies rate on Profits between |
20% £0 - £300k |
20% £0 - £300k |
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Small/large marginal band Fraction (effective rate) |
£300,001 - £1.5m 1/100th (25%) |
£300,001 - £1.5m 3/200th (27.5%) |
| VAT | |
| Standard rate | 20% |
| Reduced rate | 5% |
| Registration level from 1.4.12 | £77,000 turnover per annum |
| Deregistration level from 1.4.12 | £75,000 turnover per annum |
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