AT-A-GLANCE

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

Personal Taxation

2013/14

2012/13

Personal allowance

   
basic £9,440 £8,105
personal allowance income limit £100,000 £100,000
born between 6.4.1938 and 5.4.1948 £10,500  
born before 6.4.1938 £10,660  
aged 65 or over in tax year   £10,500
aged 75 or over in tax year   £10,660
age allowance income limit £26,100 £25,400
minimum where income exceeds limit £9,440 £8,105
     

Married couple's allowance

   
(10% relief)    
either partner born before 6.4.1935 £7,915 £7,705
age allowance income limit £26,100 £25,400
minimum where income exceeds limit £3,040 £2,960
     

Blind person's allowance

£2,160 £2,100
     

Income tax rates

   
Starting savings rate 10% 10%
on income up to
£2,790* £2,710*
Basic rate 20% 20%
on taxable income up to
£32,010 £34,370
Higher rate 40% 40%
on taxable income over
£32,010 £34,370
Additional rate 45% 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 37.50% 42.50%
     

Pension schemes allowances

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

ISAs

   
overall limit £11,520 £11,280
cash limit £5,760 £5,640
Junior ISA £3,720 £3,600
     
*Starting rate applies only to savings income. If taxable non-savings income is above this limit, the starting rate is not applicable.
     

Company Taxation

FY2013

FY2012

Corporation tax rates

   
All companies (except below) 23% 24%
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 3/400 1/100
– marginal rate 23.75% 25%
     

Capital Gains Tax

2013/14

2012/13

Rate – standard rate 18% 18%
– higher rate
28% 28%
– trustees and personal representatives
28% 28%
– entrepreneurs' relief rate 10% 10%
     
Annual exemption – individuals £10,900 £10,600
– personal representatives
£10,900 £10,600

– trustees

£5,450* £5,300*
* Exemption is apportioned if there are several trusts created by the same settlor, but with each trust entitled to a minimum exemption of £1,090 for 2013/14, £1,060 for 2012/13.
     

Inheritance Tax

Deaths after 5/4/2012

Threshold / Nil-rate band   £325,000
Death rate   40%
Lower death rate (where 10% or more given to charity)   36%
Chargeable lifetime transfers rate   20%
     

VAT

   
Standard rate   20%
Reduced rate   5%
Registration threshold after 31.3.2013   £79,000
(previously £77,000 after 31.3.2012)    
     

National Insurance

 

2013/14

(2012/13 in brackets where different)    
Class 1 contributions    

Not contracted-out

   
The employee contribution is 12% of earnings between £149 (£146) and £797 (£817) p.w. plus 2% of all earnings above £797 (£817) p.w. The employer contribution is 13.8% of all earnings in excess of the first £148 (£144) p.w. Between £109 (£107) and £149 (£146) 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 £109 (£107) p.w. to £770 p.w. by 1.4%. For the employer, they are reduced on the same band of earnings by 3.4%.
     
Class 1A and 1B contributions   13.80%
Class 2 contributions    
Flat weekly rate   £2.70 (£2.65)
Exemption limit   £5,725 (£5,595)
Class 3 contributions    
Flat weekly rate   £13.55 (£13.25)
Class 4 contributions    
9% on the band of profits between £7,755 (£7,605) and £41,450 (£42,475) plus 2% on all profits above £41,450 (£42,475).