AT-A-GLANCE

Note: It must be remembered that these proposals are subject to amendment.

Personal Taxation

2012/13

2011/12

Personal allowance

   
general £8,105 £7,475
personal allowance income limit £100,000 £100,000
aged 65 or over in tax year £10,500 £9,940
aged 75 or over in tax year £10,660 £10,090
age allowance income limit £25,400 £24,000
minimum where income exceeds limit £8,105 £7,475

Married couple's allowance

   
(10% relief)    
either partner born before 6 April 1935 £7,705 £7,295
age allowance income limit £25,400 £24,000
minimum where income exceeds limit £2,960 £2,800

Blind person's allowance

£2,100 £1,980

Income tax rates

   
Starting savings rate 10% 10%
on income up to £2,710* £2,560*
Basic rate 20% 20%
on taxable income up to £34,370 £35,000
Higher rate 40% 40%
on taxable income over £34,370 £35,000
Additional rate 50% 50%
on taxable income over £150,000 £150,000
Lower rate on dividend income 10% 10%
Higher rate on dividend income 32.50% 32.50%
Additional rate on dividend income 42.50% 42.50%

Pension schemes allowances

   
Annual allowance £50,000 £50,000
Lifetime allowance £1,500,000 £1,800,000

ISAs

   
overall limit £11,280 £10,680
cash limit £5,640 £5,340
     
*Starting rate applies only to savings income. If taxable non-savings income is above this limit, the starting rate is not applicable.
     

Company Taxation

FY2012

FY2011

Corporation tax rates

   
All companies (except below) 24% 26%
Companies with small profits 20% 20%
– 20% rate limit £300,000 £300,000
– marginal relief limit £1,500,000 £1,500,000
– marginal relief fraction 1/100 3/200
– marginal rate 25% 27.50%

 

Capital Gains Tax

2012/13

2011/12

Rate – standard rate 18% 18%
   – higher rate 28% 28%
   – trustees and personal representatives 28% 28%
   – entrepreneurs' relief rate 10% 10%
General exemption limit £10,600 £10,600

 

Inheritance Tax

Deaths after 5/4/2012

Threshold £325,000
Death rate 40%
Lower rate (where 10% or more given to charity) 36%

 

VAT

 
Standard rate after 3 January 2011 20%
Standard rate 1 Jan 2010 to 3 Jan 2011 17.5%
Registration threshold after 31 March 2012 £77,000
(previously £73,000 after 31 March 2011)  

 

National Insurance

2012/13

(2011/12 in brackets where different)  
Class 1 contributions  

Not contracted out

 
The employee contribution is 12% of earnings between £146 (£139) and £817 p.w. plus 2% of all earnings above £817 p.w. The employer contribution is 13.8% of all earnings in excess of the first £144 (£136) p.w. Between £107 (£102) and £146 (£139) p.w., no employee contributions are payable but a notional contribution is deemed to have been paid to protect contributory benefit entitlement.

Contracted out

 
The 'not contracted-out' rates for employees in salary-related schemes are reduced on the band of earnings from £107 (£102) p.w. to £770 p.w. by 1.4% (1.6%). For the employer, they are reduced on the same band of earnings by 3.4% (3.7%). Contracting-out for money-purchase schemes is abolished for 2012/13 onwards. For 2011/12 the 'not contracted-out' rates for employees in money-purchase schemes are reduced on the band of earnings from £102 p.w. to £770 p.w. by 1.6%. For the employer, the 'not contracted-out' rates are reduced on the same band of earnings by 1.4%.
Class 1A and 1B contributions 13.8%
Class 2 contributions  
Flat weekly rate £2.65 (£2.50)
Exemption limit £5,595 (£5,315)
Class 3 contributions  
Flat weekly rate £13.25 (£12.60)
Class 4 contributions  
9% on the band of profits between £7,605 (£7,225) and £42,475 plus 2% on all profits above £42,475.