Income tax

Income tax - 25 March 2010

Tax bands and rates		2013/14	2012/13
Basic rate band		£32,010	£34,370
Basic tax rate		20%	20%
Dividend ordinary tax rate		10%	10%
Savings rate band		£2,790	£2,710
Savings rate		10%	10%
Higher rate band		£32,011-£150,000	£34,371 - £150,000
Higher tax rate		40%	40%
Dividend higher tax rate		32.5%	32.5%
Additional rate band over		£150,000	£150,000
Additional tax rate		45%	50%
Dividend additional tax rate		37.5%	42.5%
Allowances that reduce taxable income
Personal allowances	under 65	£9,440	£8,105
	65 to 74	£10,500	£10,500
	75 and over	£10,660	£10,660
Blind person's allowance		£2,160	£2,100
Age related allowances are reduced by £1 for each £2 of income above £26,100 (2012/13 £25,400), until the minimum of £9,440 (2012/13 £8,105) is reached. The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 (2012/13 - £100,000) to £118,880 (2012/13 - £116,210).
Allowances that reduce tax
Married couple's allowance (MCA)	79 and over (78 and over in 2012/13)	£7,915	£7,705
Tax reduction at 10%		£791.50	£770.50
The age for MCA is of the elder spouse or civil partner. The loss of tax reduction is 10p for each £2 of income above £25,400 (2012/13 £25,400) until the minimum of £304 (2012/13 £296) is reached. All ages as at 5 April 2014 (5 April 2013 for 2012/13).
Non domicile charge
Charge for adult non UK domiciliary - applies after UK residence in seven or more of the previous tax years		£50,000	£50,000
Tax shelters
Enterprise Investment Scheme (EIS) up to		£1,000,000	£1,000,000
Maximum amount for EIS carry back		£50,000	£50,000
Income tax relief rate		30%	30%
Seed Enterprise Investment Scheme (SEIS)		£100,000	£100,000
Venture Capital Trust		£200,000	£200,000
VCT tax relief rate		30%	30%
Golden handshake max.		£30,000	£30,000
Rent a room - exempt on gross annual rent up to		£4,250	£4,250
Construction industry scheme - deduction rate
Standard rate - registered		20%	20%
Higher rate - not registered		30%	30%

Did you know?

That the Treasury is expecting to raise £151.9 billion from income tax (2012/13 - £147.4 billion).

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