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Tax and NIC rates

Income tax allowance

Allowances 2012/13 2013/14 2014/15
Personal Allowances up to 5 April 2013: *
age under 65 8,105 See below See below
age 65-74 10,500 See below See below
age 75 and over 10,660 See below See below
Personal Allowances from 6 April 2013: *
those born after 5 April 1948 - 9,440 10,000
those born between 6 April 1938 and 5 April 1948 - 10,500 10,500
those born before 6 April 1938 - 10,660 10,660
Married couple's allowance:
maximum amount 7,705 7,915 8,165
minimum amount 2,960 3,040 3,140
Blind person's allowance 2,100 2,160 2,230
Income limit for personal allowance 100,000 100,000 100,000
Income limit for age-related personal allowance ** 25,400 N/A N/A
Income limit for personal allowance for those born before 6 April 2948** N/A 26,100 27,000

* Up to and including 2012/13, an individual’s personal allowance depends on their age and their income in the tax year. From 2013/14 an individual’s personal allowance depends on their date of birth and their income in the tax year. Only people born before 6 April 1948 are entitled to age-related personal allowance; only people born before 6 April 1938 are entitled to the higher amount of age-related personal allowance. Individuals born on or after 6 April 1948 are entitled to the basic personal allowance.

** The age-related personal allowance reduces where the individual’s income in the tax year is above the income limit by £1 for every £2 above the limit until the level of the basic personal allowance is reached.

Income tax – taxable bands

2012/13 Band 2013/14 Band 2014/15 Band
Starting rate for savings
10%
Up to £2,710 Starting rate for savings
10%
Up to £2,790 Starting rate for savings
10%
Up to £2,880
Basic rate
20%
Up to £34,370 Basic rate
20%
Up to £32,010 Basic rate
20%
Up to £31,865
Higher rate
40%
£34,371 to £150,000 Higher rate
40%
£32,011 to £150,000 Higher rate
40%
£31,866 to £150,000
Additional rate
50%
Over £150,000 Additional rate
45%
Over £150,000 Additional rate
45%
Over £150,000

Age allowance restriction – personal allowance

2012/13 2013/14 2014/15
Income limit for receiving basic personal allowance only – aged 65-74 30,190 - -
Income limit for receiving basic personal allowance only – aged 75 or over 30,510 - -
Income limit for receiving basic personal allowance only – born between 6 April 1938 and 5 April 1948 - 28,220 28,000
Income limit for receiving basic personal allowance only – born before 6 April 1938 - 28,540 28,320

Dividends

2012/13 Tax rate 2013/14 Tax rate 2014/15 Tax rate
Up to £34,370 10% Up to £32,010 10% UP to £31,865 10%
£34,371 – £150,000 32.50% £32,011 – £150,000 32.50% £31,866 – £150,000 32.50%
Over £150,000 42.50% Over £150,000 37.50% Over £150,000 37.50%

National Insurance contributions (NIC)

Class 1 primary NIC (employee – EE)

£ per week (unless stated) 2012/13 2013/14 2014/15
Lower earnings limit 107 109 111
Primary theshold 146 149 153
Upper accrual point 770 770 770
Upper earnings limit 817 797 805
EE primary Class 1 rate between primary threshold and upper earnings limit 12% 12% 12%
EE primary Class 1 rate above upper earnings limit 2% 2% 2%
EE contracted-out rebate – salary 1.4% 1.4% 1.4%
Married women's reduced rate between primary threshold and upper earnings limit 5.85% 5.85% 5.85%
Married women's rate above upper earnings limit 2% 2% 2%

Class 1 secondary NIC (employers – ER)

£ per week (unless stated) 2012/13 2013/14 2014/15
Secondary threshold 144 148 153
ER secondary Class 1 rate above secondary threshold 13.8% 13.8% 13.8%
ER contracted-our rebate – salary related schemes 3.7% 3.4% 3.4%
ER contracted-out rebate – money-purchase schemes Abolished from 6 April 2012 Abolished from 6 April 2012 Abolished from 6 April 2012

Class 2 NIC (self-employed)

£ per week (unless stated) 2012/13 2013/14 2014/15
Class 2 rate 2.65 2.70 2.75
Class 2 small earnings exception (per year) 5,595 5,725 5,885
Special Class 2 rate for share fishermen 3.30 3.35 3.40
Special Class 2 rate for volunteer development workers 5.35 5.45 5.55

Class 3 NIC (voluntary)

£ per week (unless stated) 2012/13 2013/14 2014/15
Class 3 rate 13.25 13.55 13.90

Class 4 NIC (self-employed)

£ per year 2012/13 2013/14 2014/15
Class 4 lower profits limit 7,605 7,755 7,956
Class 4 upper profits limit 42,475 41,450 41,865
Class 4 rate between lower profits limit and upper profits limit 9% 9% 9%
Class 4 rate above upper profits limit 2% 2% 2%

Capital gains tax

2012/13 2013/14 2014/15
Standard rate 18% 18% 18%
Rate for higher and additional taxpayers 28% 28% 28%
Annual exemption 10,600 10,900 11,000
Entrepreneurs' Relief rate 10% 10% 10%
Entrepreneurs' Relief lifetime limit 10M 10M 10M

Inheritance tax

2012/13 2013/14 2014/15
Chargeable lifetime transfers (after exemptions):
Up to £325,000 0% 0% 0%
Over £325,000 20% 20% 20%
On death (net estate):
Up to £325,000 0% 0% 0%
Over £325,000 40% 40% 40%

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