Tax Rates

 

Income Tax Rates

2014/15

2013/14

Band £ Rate % Band £ Rate %
0 - 2,880 10* 0 - 2,790 10*
0 - 31,865 20** 0 - 32,010 20**
31,866 - 150,000 40*** 32,011 - 150,000 40***
Over 150,000 45**** Over 150,000 45****

*Only applicable to dividends and savings income. The 10% rate is not available if taxable non-savings income exceeds £2,880 (£2,790).
** Except dividends (10%).
*** Except dividends (32.5%).
**** Except dividends (37.5%).
Other income taxed first, then savings income and finally dividends.

 

Income Tax Reliefs

 

2014/15
£

2013/14
£

Personal allowance
 - born after 5 April 1948 10,000 9,440
 - born after 5 April 1938 and before 6 April 1948* 10,500 10,500
 - born before 6 April 1938* 10,660 10,660
(Reduce personal allowance by £1 for every £2 of adjusted net income over £100,000.)
Married couple's allowance (relief at 10%)*
(Either partner 75 or over and born before 6 April 1935.)
8,165 7,915
 - min. amount 3,140 3,040
* Age allowance income limit
(Reduce age allowance by £1 for every £2 of adjusted net income over £27,000 (£26,100).)
27,000 26,100
Blind person’s allowance

 

Tax Credits

 

2014/15
£

2013/14
£

Working Tax Credit    
Basic element - max. 1,940 1,920
Childcare element
70% of eligible costs up to £175 per week (£300 if two or more children).
Child Tax Credit (CTC)    
Child element per child - max. 2,750 2,720
Family element 545 545

Reductions in maximum rates

41% of income above £6,420* p.a.

*If only CTC is claimed, the threshold is £16,010 (£15,910) p.a. The family element of CTC tapers immediately after the child element at a rate of 41%.

 

Corporation Tax

 

Year to 31.3.15

Year to 31.3.14

  Profits band
£
Rate
%
Profits band
£
Rate
%
Small profits rate 0 - 300,000 20* 0 - 300,000 20*
Marginal (small profits) rate 300,001 - 1,500,000 21.25* 300,001 - 1,500,000 23.75*
Main rate Over 1,500,000 21* Over 1,500,000 23*
Standard fraction   1/400*   3/400*

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

* Different rates apply for ring-fenced (broadly oil industry) profit.

 

Value Added Tax

Standard rate 20%
Reduced rate 5%
Annual Registration Limit - from 1.4.14 (1.4.13 - 31.3.14 £79,000) £81,000
Annual Deregistration Limit - from 1.4.14 (1.4.13 - 31.3.14 £77,000)

 

Stamp Duty & Stamp Duty Land Tax

Land and buildings (on full consideration paid)

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

* The rules for disadvantaged areas are withdrawn for transactions with an effective date on or after 6 April 2013.

Shares and securities - rate 0.5%.

 

National Insurance

2014/15 Class 1 (employed) contracted in rates

Employee Employer
Earnings per week % Earnings per week %
Up to £153 Nil* Up to £153 Nil
£153.01 - £805 12 Over £153 13.8
Over £805 2    
*Entitlement to contribution-based benefits retained for earnings between £111 and £153 per week.

Class 1A (employers) 13.8% on employee taxable benefits
Class 1B (employers) 13.8% on PAYE Settlement Agreements
Class 2 (self-employed) flat rate per week £2.75
small earnings exception p.a. £5.885 p.a.
Class 3 (voluntary) flat rate per week £13.90
Class 4 (self-employed) 9% on profits between £7,956 and £41,865 plus 2% on profits over £41,865

 

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