• Home
• Why Us
  • About Us
  • Meet the Team
  • Our Promises
  • Frequently Asked Questions
  • What our Clients Say
  • Complete Profit Guide
  • How to Choose an Accountant
  • Links to our Clients
• Services
• Resources
  • Business Centre
    • Special Business Reports
    • Business Calculators
    • Business Helpsheets
    • Brilliant Business Books
    • Companies House Forms
    • Company Searches
    • Market Data
    • Useful Business Links
    • Useful Office Software
  • Tax Centre
    • Special Tax Reports
    • Tax Calculators
    • Tax Helpsheets
    • HMRC Forms
    • Personal Tax Organiser
    • Tax Busting Checklist
    • Tax Calendar
    • Tax Rates & Allowances
    • The Budget
    • Useful Tax Links
• News
  • Practice News
  • Tax Tips and News
  • Daily News Headlines
• Client Area
  • Client Only Resources
  • clientFILESHARER
  • Pay Your Fee Online
• Games
• Contact

You are in: Home » Resources » Tax Centre » Tax Rates And Allowances » Full List

In this document you will find:

• Capital Allowances
• Capital Gains Tax
• Car And Fuel Benefits
• Charitable Gifts
• Corporation Tax
• Fuel Rates
• Income Tax Allowances
• Income Tax Bands & Rates
• Individual Savings Accounts
• Inheritance Tax
• Key Tax Dates
• Minimum Wage
• National Insurance
• Pension Premiums
• Social Security Benefits
• Stamp Duty
• Tax Credits & Child Benefit
• Tax Free Mileage Allowances
• Tax Shelters
• Value Added Tax
• Van Benefits

Capital Allowances

Capital allowances write off the cost of capital assets against taxable profits. They are used instead of the depreciation in the accounts, which is not allowable as a tax deduction.

(1) For accounting periods shorter or longer than 1 year the £25,000 limit is pro-rata. There is a single £25,000 AIA limit for groups of companies and there is "anti-fragmentation" rules for "related" companies and businesses under common control. The AIA limit can be allocated between companies as they wish.

(2) Companies that make losses attributable to 100% first year allowances on designated energy saving or environmentally beneficial plant and machinery can surrender the loss in exchange for the first year tax credit equal to 19% of the loss surrendered subject to a maximum of the greater of £250,000 or the company's total PAYE and NIC liability for the period concerned.

(3) The distinction between cars that cost more and less than £12,000 ended on 1 April 2009 for companies and 6 April 2009 for unincorporated businesses. From this date cars will be put into one of two general plant pools, those over 130g/km added to a special rate 10% pool and those at or below 130gm/km will go into the main plant pool. Cars with private usage will still be held in individual pools but the rate determined by these criteria. For expenditure on cars before April 2009, there is a 5 year transitional period where they will continue to be subject to the existing expensive car rules. Prior to these dates there was a 20% writing down allowance subject to a maximum of £3000p.a.

Capital Gains Tax

*Individuals, trustees of settlements for the disabled, and personal representatives of the estate of a deceased person.

Entrepreneurs' relief is available on qualifying lifetime gains on or after 6th April 2008.

** The higher rate applies to higher and additional rate taxpayers.

Transfers between husband and wife or civil partners that live together are exempt.

Car And Fuel Benefits

The following rates apply for 2012/13.

To find the CO2 figure for your car, you can...

• visit the Vehicle Certification Agency www.vca.gov.uk
• inspect the car's V5 registration document
• ask your dealer
• look at the data pages of car magazines

For cars registered from 1 January 1998 with no CO2 emissions figures, the tax charge is 15% of the list price for engines up to 1,400 cc, 22% for engines of 1,401 cc to 2,000 cc and 32% for engines above 2,000 cc.

Where cars have zero CO2 emissions in all circumstances, the car benefit charge is reduced to zero.

List price is reduced for capital contributions made by the employee up to £5,000.

Employee contributions reduce the taxable benefit by the amount paid.

There are various discounts on the percentages for car driven on alternative fuels

Fuel Benefits

The car fuel benefit is calculated by applying the above car benefit percentage to a figure of £20,200 (2011/12 - £18,800).

The fuel benefit charge is proportionately reduced if provision of private fuel ceases part way through the year.

The fuel benefit is reduced to nil only if the employee pays for all private fuel.

Charitable Gifts

Gift Aid

Individuals can claim higher and additional rate relief on cash gifts and payments to charities using gift aid. It allows a charity to reclaim the basic-rate tax on donations made by UK taxpayers from HMRC. Higher and additional rate taxpayers can claim an additional tax relief on the gross donation through their tax return at their marginal rate.

You can make a claim for a charitable donation made in one tax year to be treated as if it had been made in the previous tax year.

To qualify for gift aid you must pay at least as much tax as the amount the charities will reclaim on your gifts in the tax year in which you make them. You must make a declaration to the charity concerned.

Give As You Earn

Give As You Earn allows employees to make regular donations tax-free from their gross salary. The employer will deduct the amount from their salary for payment to the charity.

The taxable pay of the employee is reduced by the amount of their donation.

Corporation Tax

Corporation Tax On Profits - £ per year (unless stated)

The profits limits are reduced for accounting periods of less than 12 months and for a company with associated companies.

It has been announced the main companies rate will decrease to 22% from 1st April 2014.

Fuel Rates

From 1st March 2012*

From 1st December 2011*

*Rates per mile

Income Tax Allowances

(1) The personal allowance is reduced for individuals with a gross income before the allowance of £100,000. The allowance will be reduced by £1 for every £2 of gross income above the income limit up to a maximum reduction down to zero. This applies irrespective of age.

(2) These allowances are reduced where the income is above the income limit by £1 for every £2 of income above the limit but will never be less than the personal allowance or minimum amount of married couple's allowance.

Income Tax Bands & Rates

* Only applies to savings income (otherwise is 20%)

** Dividends taxed at 10%

*** Dividends taxed at 32.5% of the gross dividend

**** Dividends taxed at 42.5% of the gross dividend

Other income is taxed first, then savings and then dividends.

Individual Savings Accounts

Savings are exempt from income tax and capital gains tax.

Anyone aged 16-17 can invest in a cash ISA only up to the cash limit above.

Junior ISA's are available for those under 18 to invest up to £3,600.

Inheritance Tax

Inheritance Tax Thresholds

The IHT threshold is to be frozen at £325,000 until 2014/15.

For deaths after 9th October 2007, a transfer of any unused nil rate band is available from former deceased spouses and civil partners.

Amounts above the threshold are taxed at 40%.

Most transfers between spouses and civil partners are exempt.

Chargeable lifetime transfers are initially charged at 20%.

Business Property Relief

• Business, interest in business or qualifying shareholders in unquoted companies (includes AIM listed companies) - 100%
• Land, buildings, machinery, or plant used in a company controlled by the transferor - 50%
• Agricultural property - 50% or 100%

Other Reliefs:

• Annual gifts of up to £3000 per donor are exempt.
• Small gifts £250
• Marriage gifts...
  • parent £5,000
  • grandparent £2,500
  • bride/groom £2,500
  • other £1,000

Reduced charge on gifts made within seven years of death:

Key Tax Dates

Income Tax and Class 4 NIC

• 31 July 2012 - 2nd payment on account for 2011/12
• 31 Jan 2013 - balancing payment for 2011/12 and 1st payment on account for 2012/13
• 31 July 2013 - 2nd payment on account for 2012/13
• 31 Jan 2014 - balancing payment for 2012/13 and 1st payment on account for 2013/14

Tax Return

• 31 October 2012 - Filing deadline for 2012 paper return
• 31 January 2013 - Filing deadline for 2012 online return

Capital Gains Tax

• 31 January 2013 - CGT payment due for 2011/12
• 31 January 2014 - CGT payment due for 2012/13

Inheritance Tax

Payment due 6 months after the end of the month of death or chargeable transfer.

For chargeable lifetime transfers from 6 April to 30 September, payment is due by 30 April in the following tax year.

Corporation Tax

Payment due 9 months and one day after the end of the accounting period. Accounts longer than 12 months are divided into two periods.

2011/12 PAYE Return Deadlines

• 19 May 2012 - P35, P14, P38, P38A and CIS36
• 31 May 2012 - P60s to employees
• 6 July 2012 - P11D, P11Db and P9D - and give copies to employees
• 19 July 2012 - Payment of Class 1A National Insurance on benefits due or 22nd July 2012 for electronic payments

Minimum Wage

National Insurance

NIC Holiday

Some businesses will be exempt from paying the employer's class 1 NICs for 12 months for up to 10 employees, capped at £5,000 per employee. The scheme started in September 2010 but will apply to new businesses set up on and after 22 June 2010. It will only apply in Scotland, Wales, Northern Ireland, the North of England, Yorkshire, the Midlands and the South West regions. Certain businesses are excluded, such as those under the IR35 or Managed Service Company rules, and businesses in grant-supported sectors such as agriculture, fisheries and coal.

Pension Premiums

For 2012/13...

• Maximum amount of pension contributions that qualify for tax relief is the greater of £3,600 or the individuals UK relevant earnings.
• An annual allowance is set at £50,000 for the Pension Input Period ending in the tax year. Contributions in excess of the allowance are charged to tax at the top slice of income. Contributions also include those made by the employer.
• Unused annual allowances of up to £50,000 can be carried forward for the next three years. When considering if there is any unused allowance from 2009/10, 2010/11 and 2011/12 the annual allowance for those years will be deemed to be £50,000.
• Employer contributions need to be "wholly and exclusively" for the benefit of the trade to obtain tax relief.
• Minimum age for taking benefits is 55. Was 50 Prior to 6 April 2010.
• Maximum age for tax relief on contributions is 74.
• Lifetime allowance is £1,500,000.(£1,8,000,000 2011/12)
• There is a tax charge of 55% on the excess value above the lifetime allowance if the excess if taken as a lump sum and 25% on monies retained.
• Maximum tax-free lump sum is 25%.

Social Security Benefits

* Or 90% of weekly earnings if this is lower

Stamp Duty

The following rates apply for 2012/13.

Stamp Duty Land Tax

The applicable rate of Stamp Duty Land Tax must be applied to the whole of the consideration paid to acquire the land / buildings.

For disadvantaged areas, sales of land and buildings up to £150,000 are exempt.

Zero Carbon Homes

From 1 October 2007 until 30 September 2012 all new zero carbon homes and flats costing up to £500,000 are exempt from stamp duty land tax. Homes and flats above this have the first £500,000 exempt. This only applies to new homes which have SDLT on the first sale.

New leases (lease duty)

Duty on rent

Please note that when calculating duty payable on the 'NPV' (Net Present Value) of leases, you must reduce your 'NPV' calculation by the following before applying the 1% rate.

Residential - £125,000
Non-Residential - £150,000

Duty on premium is the same as for transfers of land (except special rules apply for premium on non-residential properties where the rent exceeds £1,000 annually).

Stamp Tax

The rate of stamp duty / stamp duty reserve tax for the transfer of shares and securities is 0.5%. Where the consideration is £1,000 or less on the transfer of shares, they will be exempt from stamp duty.

Tax Credits & Child Benefit

Working Tax Credit - £ per year (unless stated)

Childcare Element of the Working Tax Credit - £ per year (unless stated)

Child Tax Credit - £ per year (unless stated)

Income thresholds and withdrawal rates - £ per year (unless stated)

Child Benefit/Guardian Allowance - £ per week

From 7 January 2013 tax payers with income of over £50,000 will have their Child Benefit restricted.

This will be administered as an income tax charge on the person earning over £50,000.

The income tax charge will apply at a rate of one per cent of the full Child Benefit for each £100 of income between £50,000 and £60,000. The charge on taxpayers with income above £60,000 will be equal to the amount of Child Benefit paid.

Where both partners earn over £50,000 it is the partner with the highest income who will be subject to the charge.

Tax Free Mileage Allowances

Rates for 2012/13

These rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

Tax Shelters

Value Added Tax

VAT fuel scale charges from 1/5/11

VAT fuel scale charges from 4/1/11 to 30/4/11

Van Benefits

2012/13 and 2011/12

The taxable benefit for private use of a company van that is more than home to work travel is £3,000. For 5 years from 2010/11 this is reduced to nil for vans which cannot produce CO2 emissions under any circumstances.

The taxable benefit for fuel provided for private use is £550.