Tax Resources

Click the headings below to show or hide the various available tax resources. Please note that these are provided for information purposes only. If you’d like to know more then please contact us.

Capital Allowances

Year to 31/03/2013 Year to 31/03/2014
Annual Investment Allowance £25,000 £250,000*
Writing down allowances
General Pool 18% 18%
Special Pool 8% 8%
First year allowances
Cars with emissions <= 110g/km (2012/2013) / <= 95 g/km (2013/14) 100% 100%
Energy-saving plant or machinery 100% 100%

*temporary increase 1/1/2013 to 31/12/2014

Car, Van & Fuel Benefits

Company Cars (Petrol)
CO2 emissions (g/km) (round down to nearest 5g/km) % of car's list price taxed
2011/12 2012/13 2013/14
225 plus 35 35 35
220 34 35 35
215 33 34 35
210 32 33 34
205 31 32 33
200 30 31 32
195 29 30 31
190 28 29 30
185 27 28 29
180 26 27 28
175 25 26 27
170 24 25 26
165 23 24 25
160 22 23 24
155 21 22 23
150 20 21 22
145 19 20 21
140 18 19 20
135 17 18 19
130 16 17 18
125 15 16 17
121-124 15 15 16
120 (unrounded) 10 15 16
115 10 14 15
110 10 13 14
105 10 12 13
100 10 11 12
95 10 10 11
90 10 10 10
85 10 10 10
80 10 10 10
76 - 79 10 10 10
1 - 75 (unrounded) 5 5 5

Diesel Vehicles are charged at 3 percentage points higher than the Petrol rate, up to the maximum of 35%

Capital Gains Tax

2012 / 2013 2013 / 2014
Individuals
Exemption £10,600 £10,900
Standard rate 18% 18%
Higher rate & Additional rate 28% 28%
Entrepreneur's relief - effective rate 10% 10%
Entrepreneur's relief £10,000,000 £10,000,000
Trusts
Exemption £5,300 £5,450
Standard rate 28% 28%

Entrepreneur's relief is available on the disposal of a business but please seek specific advice on whether you qualify.

Corporation Tax

Up to 31st March 2013 Up to 31st March 2014
£ Profit band % rate £ Profit band % rate
Small profit rates 0 - 300,000 20 0 - 300,000 20
Marginal (small profits) rates 300,000 to 1,500,000 25 300,000 to 1,500,000 25
Main rate 1,500,000+ 24 1,500,000+ 23.75
Standard Fraction 1/100 3/400

Close investment holding companies do not receive the benefit of the small profits rate or marginal relief, and so are taxable entirely at the main rate.

Inheritance Tax

Death Rate % Lifetime Rate % Chargeable transfers £000
Nil Nil 0-325
40 20 325 plus
Reliefs £ Marriage £
Annual exemption 3,000 Parent 5,000
Small gifts 250 Grandparent 2,500
Bride/Groom 2,500
Other 1,000
Reduced charges on gifts within seven years of death
Years before death 0 - 3 3 - 4 4 - 5 5 - 6 6 - 7
% of death charge 100 80 60 40 20
Agricultural Property
Vacant possession or right to obtain within 12 months 100
Tenanted land with vacant possession value 100
Entitled to 50% relief at 9 March 1981 and not since able to obtain vacant possession 100
Agricultural land let on or after 1 September 1995 100
Other circumstances 50
Business property
Business or interest in business 100
Controlling shareholding in quoted company 50
Settled property used in life tenant's business (Higher rate applies where settled property is transferred with business itself.) 100 / 50
Shareholding in unquoted company: >25% 100
Shareholding in unquoted company: <=25% 100

Note: new death rate (from 6 April 2012) of 36% if the deceased leaves more than 10% of their estate to charity.

Value Added Tax

Standard Rate 20%
Standard Rate VAT fraction 1/6
Reduced Rate 5%
Reduced Rate VAT fraction 1/21
Annual Registration Limit - from 01/04/13 - 31/03/14 £79,000
Annual Deregistration Limit - from 01/04/13 - 31/03/14 £77,000

Scheme Thresholds

Registration threshold Deregistration threshold
Cash accounting scheme £1,350,000 £1,600,000
Annual accounting scheme £1,350,000 £1,600,000

Optional flat rate scheme

Joining up to Exiting over
£150,000 £230,000

Businesses with annual taxable turnover of up to £150,000 can register for the flat rate scheme.

A person must leave the scheme once annual taxable turnover exceeds £230,000 or is expected to exceed £230,000 in the next 30 days.

Tax Credits

2012 / 2013 £ 2013 / 2014 £
Working Tax Credits Basic Element - Max 1,920 1,920
Child Tax Credit (CTC) Child Element 2012 / 2013 £ 2013 / 2014 £
Per child - max 2,690 2,720
Family element 545 545
Disabled child element 2,950 2,950
Severely disabled child element 1,190 1,220

Individual Savings Accounts (ISAs)

2012 / 2013 2013 / 2014
Overall annual investment limit £11,280 £11,520
Comprising cash up to £5,640 max £5,760 max
Comprising balance in stocks & shares £11,280 max £11,520 max

Income Tax Rates

2012 / 2013 2013 / 2014
Earnings £ percentage Earnings £ percentage
0.01 - 34,370 20 0.01 - 32,010 20
34,371 - 150,000 40 32,011 - 150,000 40
150,000+ 50 150,000+ 50

Dividend Tax Rates

2012 / 2013 2013 / 2014
Earnings £ percentage Earnings £ percentage
0.01 - 34,370 10 0.01 - 32,010 10
34,371 - 150,000 32.5 32,011 - 150,000 32.5
150,000+ 42.5 150,000+ 42.5

Income Tax Reliefs

Personal Allowance 2012 / 2013 £ 2013 / 2014 £
Under 65 8,105 9,440
65 - 74 10,500 10,500
75+ 10,660 10,660
Married couple's allowance (relief at 10%) (Either partner born before 1935) 2012 / 2013 £ 2013 / 2014 £
Maximum amount 7,705 7,915
Minimum amount 2,960 3,040
Other 2012 / 2013 £ 2013 / 2014 £
Age allowance income limit 25,400 26,100
Blind person's allowance 2,100 2,160

Notes: reduction in personal allowance for income over £100,000. Allowance reduces by £1 for every £2 income over £100,000

Age related allowance reduced by £1 for every £2 over £25,400

Mileage Allowance Payments

Cars & Vans Pence per mile
Up to 10,000 miles 45
Over 10,000 miles 25
Pence per mile
Bicycles 20
Motorcycles 24

Passenger supplement is 5p per passenger per mile.

National Insurance

2012 / 2013

Employee Employer
Earnings per week % Earnings per week %
Up to £146 Nil Up to £144 Nil
£146.01 - £817 12 £144+ 13.8
£817+ 2
Class 1A (employers) 13.8% on employee taxable benefits
Class 1B (employers) 13.8% on Payee Settlement Agreement
Class 2 (self-employed) flat rate per week £2.65 small earnings exception p.a. £5,595 p.a.
Class 3 (voluntary) flat rate per week £13.25
Class 4 (self-employed) 9% on profits between £7,605 annd £42,475 plus 2% on profits over £42,475

2013 / 2014

Employee Employer
Earnings per week % Earnings per week %
Up to £149 Nil Up to £148 Nil
£149.01 - £797 12 £148+ 13.8
£797+ 2
Class 1A (employers) 13.8% on employee taxable benefits
Class 1B (employers) 13.8% on Payee Settlement Agreement
Class 2 (self-employed) flat rate per week £2.70 small earnings exception p.a. £5,725 p.a.
Class 3 (voluntary) flat rate per week £13.55
Class 4 (self-employed) 9% on profits between £7,755 and £41,450 plus 2% on profits over £41,450

Main Social Security Benefits

Weekly benefit - basic retirement pensions

Single £110.15
Married £176.15

Statutory pay rates - average weekly earnings £109 or over

Statutory Sick Pay £86.70
Statutory Maternity Pay - first six weeks 90% of weekly earnings
Statutory Maternity Pay - next 33 weeks £136.78*
Statutory Paternity Pay - two weeks £136.78*
Statutory Adoption Pay - 39 weeks £136.78*

* Or 90% of weekly earnings if lower

Stamp Duty & Stamp Duty Land Tax

Land & buildings (on full consideration paid)

Rate Residential Property £ Non-residential property £
Disadvantaged areas * Other
Nil 0 - 150,000 0 - 125,000 0 - 150,000
1% 150,001 - 250,000 125,001 - 250,000 150,001 - 250,000
3% 250,001 - 500,000 250,001 - 500,000 250,001 - 500,000
4% 500,000 - 1,000,000 500,000 - 1,000,000 500,000 - 1,000,000
5% 1,000,000 - 2,000,000 1,000,000 - 2,000,000 1,000,000 - 2,000,000
7% 2,000,000+ 2,000,000+ 2,000,000+

SDLT Leases

Rate Residential Property £ Non-residential property £
Nil 0 - 125,000 0 - 150,000
1 Over 125,000 Over 150,000

SDRT (Stamp Duty Reserve Tax) is payable on share purchases / transfers. This is a flat 0.5% rate rounded down to the nearest £5.

* Disadvantaged area rules are being withdrawn for transactions on or after 6 April 2013.

Pension Premiums

Year Lifetime Allowance Lifetime Allowance Charge
2012 / 2013 £1,500,000 25% on excess if taken as pension
55% on excess if taken as lump sum
2013 / 2014 £1,500,000 25% on excess if taken as pension
55% on excess if taken as lump sum