PERSONAL TAXATION

2014/15

2013/14

Personal allowance

 

 

basic

£10,000

£9,440

personal allowance income limit

£100,000

£100,000

born between 6.4.1938 and 5.4.1948

£10,500

£10,500

born before 6.4.1938

£10,660

£10,660

age allowance income limit

£27,000

£26,100

minimum where income exceeds limit

£10,000

£9,440

     

Married couple’s allowance

(10% relief)

 

 

either partner born before 6.4.1935

£8,165

£7,915

age allowance income limit

£27,000

£26,100

minimum where income exceeds limit

£3,140

£3,040

     

Blind person’s allowance

£2,230

£2,160

     

Income tax rates

 

 

Starting savings rate

10%

10%

   on income up to

£2,880*

£2,790*

Basic rate

20%

20%

   on taxable income up to

£31,865

£32,010

Higher rate

40%

40%

   on taxable income over

£31,865

£32,010

Additional rate

45%

45%

   on taxable income over

£150,000

£150,000

Lower rate on dividend income

10%

10%

Higher rate on dividend income

32.5%

32.5%

Additional rate on dividend income

37.5%

37.5%

     

Pension schemes allowances

 

 

Annual allowance

£40,000

£50,000

Lifetime allowance

£1,250,000

£1,500,000

     

ISAs

 

 

overall limit**

£11,880

£11,520

cash limit**

£5,940

£5,760

Junior ISA***

£3,840

£3,720

*Starting rate applies only to savings income. If taxable non-savings income is
above this limit, the starting rate is not applicable.

**Increases to £15,000 from 1 July 2014.

***Increases to £4,000 from 1 July 2014.

COMPANY TAXATION

FY2014

FY2013

Corporation tax rates

 

 

All companies (except below)

21%

23%

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

1/400

3/400

— marginal rate

21.25%

23.75%

     

CAPITAL GAINS TAX

2014/15

2013/14

Rate – standard rate

18%

18%

– higher rate

28%

28%

– trustees and personal representatives

28%

28%

– entrepreneurs’ relief rate

10%

10%

Annual exemption – individuals

£11,000

£10,900

– personal representatives

£11,000

£10,900

– trustees

£5,500*

£5,450*

* Exemption is apportioned if there are several trusts created by the same settlor,
but with each trust entitled to a minimum exemption of £1,100 for 2014/15, £1,090 for 2013/14.

 

INHERITANCE TAX

Deaths after 5/4/2012

Threshold / Nil-rate band

£325,000

 

Death rate

40%

 

Lower death rate
(10% or more given to charity)

36%

 

Chargeable lifetime transfers rate

20%

 

VAT

2014/15

 

Standard rate

20%

 

Reduced rate

5%

 

Registration threshold after 31.3.2014

£81,000

 

(previously £79,000 after 31.3.2013)

 

 

     

NATIONAL INSURANCE

2014/15

 

(2013/14 in brackets where different)

 

 

Class 1 contributions

 

 

Not contracted-out

 

 

The employee contribution is 12% of earnings between £153 (£149) and £805 (£797) p.w.
plus 2% of all earnings above £805 (£797) p.w. The employer contribution is 13.8% of
all earnings in excess of the first £153 (£148) p.w. Between £111 (£109) and £153 (£149) p.w.,
no employee contributions are payable but a notional contribution is deemed to have been
paid to protect contributory benefit entitlement. From 6 April 2014 most employers can claim employment allowance of up to £2,000 a year to offset against their liability for employer contributions.

Contracted-out

 

 

The ‘not contracted-out’ rates for employees in salary-related schemes are reduced
on the band of earnings from £111 (£109) 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

13.8%

 

Class 2 contributions

 

 

Flat weekly rate

£2.75 (£2.70)

 

Exemption limit

£5,885 (£5,725)

 

Class 3 contributions

 

 

Flat weekly rate

£13.90 (£13.55)

 

Class 4 contributions

 

 

9% on the band of profits between £7,956 (£7,755) and £41,865 (£41,450)
plus 2% on all profits above £41,865 (£41,450).