Income Tax
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Main reliefs
|
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Allowed at top rate of tax
|
2013/14
|
2012/13
|
||||
Personal Allowance (PA)
|
9,440
|
8,105
|
||||
Personal Allowance (born 6.4.38-5.4.48)*
|
10,500
|
10,500
|
||||
Personal Allowance (born before 6.4.38)*
|
10,660
|
10,660
|
||||
Blind Person's Allowance
|
2,160
|
2,100
|
||||
Allowed only at 10%
|
||||||
Married Couple's Allowance (MCA)*
(only available if born before 6th April 1935)
|
7,915
|
7,705
|
||||
Age-related allowances (AA)* income limit
|
26,100
|
25,400
|
||||
*AA reduced by £1 for every £2 by which income exceeds limit.
Personal AA reduced before MCA until equal to normal PA.
MCA reduced to minimum £3,040 (2012/13: £2,960).
PA is withdrawn at £1 for every £2 by which total income exceeds £100,000.
(PA is nil at income of £118,880 or more).
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Rate Bands
|
2013/14
|
2012/13
|
||||
Basic rate band (BRB)
|
32,010
|
34,370
|
||||
Higher rate band (HRB)
|
32,011-150,000
|
34,371-150,000
|
||||
Additional rate
|
over 150,000
|
over 150,000
|
||||
BRB and HRB extended by Gift Aid donations and pension contributions up to permitted limit.
|
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Tax rates
|
||||||
2013/14
|
2012/13
|
|||||
Rates differ for General/Savings/Dividends
|
G
|
S
|
D
|
G
|
S
|
D
|
Basic rate
|
20%
|
20%
|
10%
|
20%
|
20%
|
10%
|
Higher rate
|
40%
|
40%
|
32.5%
|
40%
|
40%
|
32.5%
|
Additional rate
|
45%
|
45%
|
37.5%
|
50%
|
50%
|
42.5%
|
General income (salary, pension, profit, rent) uses lower rate bands first, then savings (interest), then dividends. UK dividends received are 90% of taxable amount with 10% tax credit.
|
||||||
If taxable general income is less than £2,790 (2012/13: £2,710), savings income is taxed at a 'starting rate' of 10% until total taxable income exceeds that limit. This 'starting rate band' is part of the BRB.
|
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