| Income Tax allowances | 2013 to 2014 | 2014 to 2015 |
|---|---|---|
| Personal Allowance (1) | N/A | N/A |
| Personal Allowance for people born after 5 April 1948 (1) | £9,440 | £10,000 |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Personal Allowance for people aged 65-74 (1)(2) | N/A | N/A |
| Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2) | £10,500 | £10,500 |
| Personal Allowance for people aged 75 and over (1)(2) | N/A | N/A |
| Personal Allowance for people born before 6 April 1938 (1) (2) | £10,660 | £10,660 |
| Maximum amount of Married Couple’s Allowance (born before 6th April 1935) (2) (3) | £7,915 | £8,165 |
| Income limit for age-related allowances | N/A | N/A |
| Income limit for the allowances for those born before 6 April 1948 | £26,100 | £27,000 |
| Minimum amount of Married Couple’s Allowance | £3,040 | £3,140 |
| Blind Person’s Allowance | £2,160 | £2,230 |
| Income Tax allowances | 2011 to 2012 | 2012 to 2013 |
|---|---|---|
| Personal Allowance (1) | £7,475 | £8,105 |
| Personal Allowance for people born after 5 April 1948 (1) | N/A | N/A |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Personal Allowance for people aged 65-74 (1)(2) | £9,940 | £10,500 |
| Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2) | N/A | N/A |
| Personal Allowance for people aged 75 and over (1)(2) | £10,090 | £10,660 |
| Personal Allowance for people born before 6 April 1938 (1) (2) | N/A | N/A |
| Maximum amount of Married Couple’s Allowance (aged 75 and over) (2) (3) | £7,295 | £7,705 |
| Income limit for age-related allowances | £24,000 | £25,400 |
| Income limit for the allowances for those born before 6 April 1948 | N/A | N/A |
| Minimum amount of Married Couple’s Allowance | £2,800 | £2,960 |
| Blind Person’s Allowance | £1,980 | £2,100 |
(1) The Personal Allowance reduces where the income is above £100,000 - by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age or date of birth.
(2) These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit.
(3) This applies until the level of the personal allowance for those aged under 65, or from 2013 to 2014, for those born after 5 April 1948, is reached. For married couples allowance this applies until it reaches the minimum amount Tax relief for the Married Couple’s Allowance is given at the rate of 10%.
| Rate | 2013 to 2014 | 2014 to 2015 |
|---|---|---|
| Starting rate for savings: 10%* | £0 - £2,790 | £0 - £2,880 |
| Basic rate: 20% | £0 - £32,010 | £0 - £31,865 |
| Higher rate: 40% | £32,011 - £150,000 | £31,866 - £150,000 |
| Additional rate: 50% | N/A | N/A |
| Additional rate: 45% from 6 April 2013 | Over £150,000 | Over £150,000 |
| Rate | 2011 to 2012 | 2012 to 2013 |
| Starting rate for savings: 10%* | £0 - £2,560 | £0 - £2,710 |
| Basic rate: 20% | £0 - £35,000 | £0 - £34,370 |
| Higher rate: 40% | £35,001 - £150,000 | £34,371 - £150,000 |
| Additional rate: 50% | Over £150,000 | Over £150,000 |
| Additional rate: 45% from 6 April 2013 | N/A | N/A |
The 10% starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10% starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
The rates available for dividends are the 10% ordinary rate, the 32.5% dividend upper rate and the dividend additional rate of 42.5% (the dividend additional rate is 37.5% from 2013 to 2014).
Historical UK Tax Rates
| per year 1 | 2009-10 | 2010-11 |
| Income tax personal and age-related allowances 2 | ||
| Personal allowance (age under 65) | £6,475 | £6,475 |
| Personal allowance (age 65-74) | £9,490 | £9,490 |
| Personal allowance (age 75 and over) | £9,640 | £9,640 |
| Married couple's allowance * (age 75 and over) | £6,965 | £6,965 |
| Married couple's allowance * - minimum amount | £2,670 | £2,670 |
| Income limit for age-related allowances | £22,900 | £22,900 |
| Blind person’s allowance | £1,890 | £1,890 |
| Capital gains tax annual exempt amount | ||
| Individuals etc. | £10,100 | £10,100 |
| Most trustees | £5,050 | £5,050 |
| Individual inheritance tax allowance | £325,000 | £325,000 |
| Pension schemes allowances | ||
| Annual Allowance | £245,000 | £255,000 |
| Lifetime Allowance | £1,750,000 | £1,800,000 |
1 The income tax year is 6 April to 5 April. 2 From April 2010, the personal allowance will be gradually withdrawn for income over £100,000 at a rate of £1 of allowance lost for every £2 over £100,000 until it is completely removed. * Married couple's allowance is given at the rate of 10%. |
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| 2009-10 | 2010-11 | |
| Savings starting rate*: 10% | 0 - £2,440 | 0 - £2,440 |
| Basic rate: 20% | 0 - £37,400 | 0 - £37,400 |
| Higher rate: 40% | Over £37,400 | £37,401 - £150,000 |
| Additional rate : 50% | N/A | Over £150,000 |
* only available if non savings income is less than this amount. |
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| 2009-10 | 2010-11 | |
| Full rate of CGT | 18% | 18% |
| Entrepreneurs' Relief fraction | 4/9 | 4/9 |
| Net rate for Entrepreneurs | 10% | 10% |
| per year 1 | 2009-10 | 2010-11 |
| £0-£300,000 | 21% | 21% |
| £300,001 - £1,500,000 | Marginal rate | Marginal rate |
| £1,500,001 or more | 28% | 28% |
1 The corporation tax year is 1 April to 31 March. |
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| per year | 2009-10 | 2010-11 |
| Main writing down allowance | 20% | 20% |
| Special rate writing down allowance | 10% | 10% |
| Temporary first year-allowance | 40% | 0% |
| Annual Investment Allowance 1 | £50,000 | £100,000 |
| 1 Not available on cars and some other types of plant and machinery. | ||
| per week (unless stated) | 2009-10 | 2010-11 |
| Lower earnings limit, primary Class 1 | £95 | £97 |
| Upper earnings limit, primary Class 1 | £844 | £844 |
| Upper Accruals point | £770 | £770 |
| Primary threshold | £110 | £110 |
| Secondary threshold | £110 | £110 |
| Employees’ primary Class 1 rate between primary threshold and upper earnings limit | 11% | 11% |
| Employees’ primary Class 1 rate above upper earnings limit | 1% | 1% |
| Employees’ contracted-out rebate - salary-related schemes | 1.6% | 1.6% |
| Employees’ contracted-out rebate - money-purchase schemes | 1.6% | 1.6% |
| Married women’s reduced rate between primary threshold and upper earnings limit | 4.85% | 4.85% |
| Married women’s rate above upper earnings limit | 1% | 1% |
| Employers’ secondary Class 1 rate above secondary threshold | 12.8% | 12.8% |
| Employers’ contracted-out rebate, salary-related schemes | 3.7% | 3.7% |
| Employers’ contracted-out rebate, money-purchase schemes | 1.4% | 1.4% |
| Class 2 rate | £2.40 | £2.40 |
| Class 2 small earnings exception (per year) 1 | £5,075 | £5,075 |
| Special Class 2 rate for share fishermen | £3.05 | £3.05 |
| Special Class 2 rate for volunteer development workers | £4.75 | £4.85 |
| Class 3 rate (per week) | £12.05 | £12.05 |
| Class 4 lower profits limit (per year) | £5,715 | £5,715 |
| Class 4 upper profits limit (per year) | £43,875 | £43,875 |
| Class 4 rate between lower profits limit and upper profits limit | 8% | 8% |
| Class 4 rate above upper profits limit | 1% | 1% |
1 Those with profits less than, or expected to be less than, the level of the Small Earnings Exception may apply for exemption from paying Class 2 contributions. From April 2011 the proposed increase of 0.5% on both employee and employer National Insurance contributions has been increased to 1%. The threshold will rise correspondingly to eliminate the effect of the increase for those earning £20,000 or less per annum. |
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