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Krogh & Partners Limited
 
Your auditor, accountant and advisor in the United Kingdom

Tax rates

Budget 2012 tax rates
Income Tax
Annual investment limits
Car Benefit
Tax free mileage allowances
National Insurance Contributions
Pension contributions
Inheritance Tax
Value Added Tax
Capital Gains Tax
Corporation Tax
Main capital allowances
Stamp Duty & Stamp Duty Land Tax
Earliest due dates for payment of Tax
Useful rates


Income Tax





Main reliefs





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PA is withdrawn at £1 for every £2 by which total income exceeds £100,000.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).




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.

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.