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Budget 2014 Tax Tables

This is a basic guide, prepared by ACCA’s Technical Advisory team, for members and their colleagues or clients.

It is an introduction only and should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained, where necessary.

 

 

 

2014/15

2013/14

 

£

£

Income tax rates – (non-dividend income)
10% lower rate tax – savings rate only

Up to 2,880

Up to 2,790

20% basic rate tax

Up to 31,865

Up to 32,010

40% higher rate tax

31,866 – 150,000

32,011 – 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 32,010

32.5% higher dividend rate

31,866 – 150,000

32,011 – 150,000

37.5% additional dividend rate

Above £150,000

Above £150,000

Personal allowances
Personal allowance (age under 65)

N/A

N/A

Personal allowance (age 65 – 74)

N/A

N/A

Personal allowance (age 75 and over)

N/A

N/A

Personal allowance those born after 5 April 1948

10,000

9,440

Personal allowance those born between 6 April 1938 and 5 April 1948

10,500

10,500

Personal allowance those born before 5 April 1938

10,660

10,660

Married couple’s allowance those born before 6 April 1935

8,165

7,915

Married couple’s allowance – minimum amount

3,140

3,040

Income limit for under 65 personal allowance

100,000

100,000

Income limit for personal allowances (born before 6 April 1948)

27,000

26,100

Blind person’s allowance

2,230

2,160

Rent-a-room relief

4,250

4,250

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

109

Upper earnings limit, primary Class 1 (per week)

805

797

Upper accrual point *

770

770

Primary threshold (per week)

153

149

Secondary threshold (per week)

153

148

Employment allowance (per year per employer)

2,000

N/A

Employee’s primary Class 1 rate between primary threshold and upper earnings limit

12.00%

12.00%

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

2.70

Class 2 small earning exception (per year)

5,885

5,725

Special Class 2 rate for share fishermen (per week)

3.40

3.35

Special Class 2 rate for volunteer development workers

5.55

5.45

Class 3 rate (per week)

13.90

13.55

Class 4 lower profits limit

7,956

7,755

Class 4 upper profits limit

41,865

41,450

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%

Pensions
Annual allowance

40,000

50,000

Lifetime allowance

1,250,000

1,500,000

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):
  – total maximum investment

11,880

11,520

  – maximum cash element of ISA

5,940

5,760

Junior ISA investment limit

3,840

3,720

Child value of CFT limit

3,840

3,720

New ISA (NISA) limits
New ISA (NISA) annual limit from 1 July 2014 to 5 April 2015

15,000

N/A

New Junior ISA investment annual limit from 1 July 2014 to 5 April 2015

4,000

N/A

New child value of CFT annual limit from 1 July 2014 to 5 April 2015

4,000

N/A

Between 6 April and 30 June 2014 the total amount you can pay into a cash ISA is £5,940, any amounts that you have paid into your ISA between 6 April 2014 and 30 June 2014 will count against your £15,000 NISA limit for 2014/15
Capital gains tax
Rate – basic rate tax payer

18%

18%

  – higher rate tax payer

28%

28%

Individuals

11,000

10,900

Certain trusts for disabled persons

11,000

10,900

Other trusts

5,500

5,450

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

1,920

Couple and lone parent element

1,990

1,970

30 hour element

800

790

Disabled worker element

2,935

2,855

Severe disability element

1,255

1,220

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

Family element, baby addition

Nil

Nil

Child element

2,750

2,720

Disabled child element

3,100

3,015

Severely disabled child element

1,255

1,220

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

15,910

Income disregard

5,000

5,000

Income fall disregard

2,500

2,500

Child benefit/Guardian’s allowance rates
Eldest/only child

20.50

20.30

Other children

13.55

13.40

Guardian’s allowance

16.35

15.90

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
Normal main rate (profits above £1,500,000)

21%

23%

Small companies rate (profits below £300,000)

20%

20%

Margin relief fraction

1/400

3/400

Capital Allowances
Main writing down allowance

18%

18%

Special rate writing down allowance

8%

8%

Annual Investment Allowance

500,000

250,000

First year allowances for certain energy-saving/water efficient products

100%

100%

Research and Development Tax Credit Rates
SME Rate

225%

225%

Large company rate

130%

130%

Repayable tax credit for small and medium sized loss making company

14.50%

11%

For large companies the tax credit is 130% or 10% above the line of tax credit
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

79,000

Deregistration threshold

79,000

77,000

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)

 

 

0% residential

0 – 125,000

0 – 125,000

1% residential

125,001 – 250,000

125,001 – 250,000

3% residential

250,001 – 500,000

250,001 – 500,000

4% residential

500,001 – 1,000,000

500,001 – 1,000,000

5% residential

1,000,001 – 2,000,000

1,000,001 – 2,000,000

7% residential

over 2,000,000

over 2,000,000

15% non-residential

over 2,000,000

over 2,000,000

0% non-residential

0 – 150,000

0 – 150,000

1% non-residential

150,001 – 250,000

150,001 – 250,000

3% non-residential

250,001 – 500,000

250,001 – 500,000

4% non-residential

over 500,000

over 500,000

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)
Property value less than £2,000,000

 

0

0

Property value between £2,000,000 – £5,000,000

 

15,400

15,000

Property value between £5,000,000 – £10,000,000

 

35,900

35,000

Property value between £10,000,000 – £20,000,000

 

71,850

70,000

Property value more than £20,000,000

 

143,750

140,000

Stamp duty and stamp duty reserve tax
Standard rate

0.50%

0.50%

Higher rate

1.50%

1.50%

Insurance Premium Tax    
Standard rate

6.0%

6.0%

Higher rate

20.0%

20.0%

 

 

 

 

 

 

 

 

 

 

ACCA LEGAL NOTICE

 

This is a basic guide prepared by the 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.