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Tax Rate & Allowances Guide for the Budget 2015

19th March 2015

Tax Rates and Allowances Guide

2014/15 2015/16
£ £
Income tax rates – (non-dividend income)
10% lower rate tax – savings rate only Up to 2,880 Up to 5,000
20% basic rate tax Up to 31,865 Up to 31,785
40% higher rate tax 31,866 – 150,000 31,786 – 150,000
45% additional rate tax Above £150,000 Above £150,000
From 2008-09 10% starting rate applies to savings income only and will not apply if non-savings income exceeds threshold.
Income tax rates – (dividend income)
10% rate Up to 31,865 Up to 31,785
32.5% higher dividend rate 31,866 – 150,000 31,786 – 150,000
37.5% additional dividend rate Above £150,000 Above £150,000
Personal allowances
Personal allowance those born after 5 April 1948 10,000 10,600
Personal allowance those born between 6 April 1938 and 5 April 1948 10,500 10,600
Personal allowance those born before 6 April 1938 10,660 10,660
Married couple’s allowance those born before 6 April 1935 8,165 8,355
Married couple’s allowance – minimum amount 3,140 3,220
Income limit for under 65 personal allowance 100,000 100,000
Income limit for personal allowances (born before 6 April 1948) 27,000 27,700
Blind person’s allowance 2,230 2,290
Rent-a-room relief 4,250 4,250
Transferable tax allowance for married couples and civil partners N/A 1,060
Abatement of personal allowance will apply of £1 for every £2 of taxable income in excess of income limit.

 

 


National insurance
Lower earnings limit, primary Class 1 (per week) 111 112
Upper earnings limit, primary Class 1 (per week) 805 815
Upper accrual point 770 770
Primary threshold (per week) 153 155
Secondary threshold (per week) 153 156
                                               Employment allowance (per year per employer) 2,000 2,000
Employee’s primary Class 1 rate between primary threshold and upper earnings limit 12% 12%
Employee’s primary Class 1 rate above upper earnings limit 2.00% 2.00%
Employee’s contracted-out rebate – salary-related scheme 1.40% 1.40%
Married woman’s reduced rate between primary threshold and upper earnings limit 5.85% 5.85%
Married woman’s rate above upper earnings limit 2.00% 2.00%
Employer’s secondary Class 1 rate above secondary threshold 13.80% 13.80%
Employer’s secondary Class 1 rate above secondary threshold (contracted out) 10.40% 10.40%
Employer’s contracted-out rebate, salary-related schemes (between LEL and UAP) 3.40% 3.40%
Class 2 rate (per week) 2.75 2.80
Class 2 small earning exception (per year) 5,885 5,965
Special Class 2 rate for share fishermen (per week) 3.40 3.45
Special Class 2 rate for volunteer development workers 5.55 5.60
Class 3 rate (per week) 13.90 14.10
Class 4 lower profits limit 7,956 8,060
Class 4 upper profits limit 41,865 42,385
Class 4 rate between lower profits limit and upper profits limit 9.00% 9.00%
Class 4 rate above upper profits limit 2.00% 2.00%
From 6 April 2015 there will be no employer’s liability to NIC for employees under 21.
Pensions
Annual allowance 40,000 40,000
Lifetime allowance 1,250,000 1,250,000
Relief’s and incentives
Enterprise Investment Scheme (EIS) – maximum 1,000,000 1,000,000
Venture Capital Trust (VCT) – maximum 200,000 200,000
Enterprise Management Incentive Scheme (EMI) – employee limit 240,000 240,000
Seed Enterprise Investment Scheme (SEIS) 100,000 100,000
Income tax relief on EIS schemes 30% 30%
Income tax relief on VCT schemes 30% 30%
Income tax relief on SEIS schemes 50% 50%

 

Individual Savings Account (ISA):
New ISA (NISA) limits
New ISA (NISA) annual limit 15,000 15,240
New Junior ISA investment annual limit 4,000 4,080
New child value of Child Trust Fund annual limit 4,000 4,080
Capital gains tax
Rate – basic rate tax payer 18% 18%
– higher rate tax payer 28% 28%
Individuals 11,000 11,100
Certain trusts for disabled persons 11,000 11,100
Other trusts 5,500 5,550
Entrepreneurs Relief lifetime limit 10,000,000 10,000,000
Entrepreneurs Rate 10% 10%
Chattels exemption (5/3 taxable on excess) 6,000 6,000
Working and Child tax credits rates
Working tax credit
Basic element 1,940 1,960
Couple and lone parent element 1,990 2,010
30 hour element 800 810
Disabled worker element 2,935 2,970
Severe disability element 1,255 1,275
Childcare element of the Working tax credit
Maximum eligible cost for one child (per week) 175 175
Maximum eligible cost for two or more children (per week) 300 300
Percentage of eligible costs covered 70.00% 70.00%
Child tax credit
Family element 545 545
Child element 2,750 2,780
Disabled child element 3,100 3,140
Severely disabled child element 1,255 1,275
Income threshold and withdrawal rates
First income threshold 6,420 6,420
First withdrawal rate 41.00% 41.00%
First threshold for those entitled to Child tax credit only 16,010 16,105
Income disregard 5,000 5,000
Income fall disregard 2,500 2,500
Child benefit/Guardian’s allowance rates
Eldest/only child 20.50 20.70
Other children 13.55 13.70
Guardian’s allowance 16.35 16.55
An income tax charge will apply to taxpayers with income exceeding £50,000 in a tax year, when child benefit is also received by them or their partner. The charge will reduce the financial benefit of receiving child benefit for those with income between £50,000 and £60,000 and remove it completely for taxpayers with income above £60,000.

 

 

 

 

Inheritance tax
Single persons nil rate band 1 – 325,000 1 – 325,000
Single persons 40% band over 325,000 over 325,000
Married couples or civil partnerships allowance nil rate band 650,000 650,000
Gifts to charities Exempt Exempt
Small gifts to same person 250 250
Marriage/civil partnership gifts by:
Parent 5,000 5,000
Grandparent/party 2,500 2,500
Other person 1,000 1,000
From 6 April 2012 a reduced rate of IHT of 36% will be introduced where 10% or more of the net estate is left to charity.
Business Property Relief
Business or interest in a business and transfer if unquoted shareholdings 100% 100%
Transfers out of a controlling shareholding in quoted companies, land and buildings, plant and machinery used in a qualifying company or partnership 50% 50%
Taxation of trusts
Trust tax rate excluding dividend income 45.00% 45.00%
Dividend trust rate 37.50% 37.50%
Basic rate trust income tax band 1,000 1,000
Corporation tax
£1-£300,000 20% 20%
£300,001-£1,500,000 21.25% 20%
Over £1,500,000 21% 20%
Capital Allowances
Main writing down allowance 18% 18%
Special rate writing down allowance 8% 8%
First year allowances for certain energy-saving/water efficient products 100% 100%
Annual investment allowance 100% 100%
AIA from 1 April 2014 to 31 December 2015 maximum £500,000pa. From 1 January 2016 £25,000pa. (subject to change).
Research and Development Tax Credit Rates
SME Rate 225% 230%
Large company rate 130% 130%
Large companies expenditure credit scheme 10% 11%
Patent Box
Patent box 10% 10%
The Patent box regime will phased in from April 2013 with companies able to claim the benefit of
60% for 2013/14, 70% for 2014/15, 80% for 2015/16, 90% for 2016/17 and 100% from 2017/18 onwards
VAT
Standard rate 20% 20%
Registration threshold 81,000 82,000
Deregistration threshold 79,000 80,000
Cash accounting scheme 1,350,000 1,350,000
Annual accounting scheme 1,350,000 1,350,000
Flat rate scheme 150,000 150,000
Flat rate scheme exit threshold 230,000 230,000

 

Stamp duty land tax (SDLT) Property purchases in England, Wales and Northern Ireland    
Band Rate incremental
0% residential £1-£125,000
2% residential £125,001-£250,000
5% residential £250,001-£925,000
10% residential £925,001-£1.5m
12% residential Above £1.5 million
0% non-residential and mixed-use properties £1 to £150,000
1% non-residential and mixed-use properties £150,001-250,000
3% non-residential and mixed-use properties £250,001 -£500,000
4% non-residential and mixed-use properties Above £500,000
Stamp duty land tax (SDLT) Property purchases in Scotland    
Band Rate incremental
0% residential £1-£135,000
2% residential £135,001-£250,000
10% residential £250,001-£1m
12% residential Above £1m
0% non-residential and mixed-use properties £1-£150,000
3% non-residential and mixed-use properties £150,00-£350,000
4.5% non-residential and mixed-use properties Above £350,000
Leases 1% on present value of rents above £150,000
From 20 March 2014 residential property purchased by non-natural persons for consideration exceeding £500,000 will be subject to SDLT at 15%
Annual Tax on Enveloped Dwellings (ATED)
More than £1m but not more than £2m n/a £7,000
More than £2m but not more than £5m £15,400 £23,350
More than £5m but not more than £10m £35,900 £54,450
More than £10m but not more than £20m £71,850 £109,050
More than £20m £143,750 £218,200

  

For further help and advice

Tel: 01332 813380  – Email: advice@rdgaccounting.com 

 

ACCA LEGAL NOTICE

This is a basic guide prepared by ACCA UK‘s Technical Advisory Service for members and their clients. It should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary.

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