Income Tax

 

2013-14

2012-13

Basic rate band – income up to

£32,010

£34,370

Starting rate for savings

*10%

*10%

Basic rate

20%

20%

Dividend ordinary rate

10%

10%

Higher rate – income over

£32,010

£34,370

Higher rate

40%

40%

Dividend upper rate

32.5%

32.5%

Additional rate – income over

£150,000

£150,000

Additional rate

45%

50%

Dividend additional rate

37.5%

42.5%

*Starting rate is for savings income up to the starting rate limit of £2,790 (£2,710) within the basic rate band. The rate applies to any balance of the limit remaining after allocating taxable non-savings income

 

Personal allowances (PA)

 

 

 

Born after 5 April 1948

– Under 65

*£9,440

*£8,105

Born after 5 April 1938 and before 6 April 1948

– 65 to 74

*£10,500

*£10,500

Born before 6 April 1938

– 75 and over

*£10,660

*£10,660

Married Couple’s allowance (MCA)

 

Either partner born before 6 April 1935

*£7,915

*£7,705

(relief restricted to 10%)

 

*Age related allowances are reduced by £1 for every £2 that adjusted net income exceeds £26,100 (£25,400) to a maximum PA of £9,440 (£8,105) and a minimum MCA of £3,040 (£2,960). Where adjusted net income exceeds £100,000, PA is reduced in the same way until it is nil

 

Tax Shelters

 

 

Enterprise Investment Scheme up to

£1,000,000

£1,000,000

Venture Capital Trust up to

 

£200,000

£200,000

Rent a Room’ exempt on gross annual rent

£4,250

£4,250

Construction Industry Scheme deduction rate

20/30%

20/30%

ISAs: Overall investment limit

£11,520

£11,280

Including cash maximum of

£5,760

£5,640

Junior ISA limit

 

£3,720

£3,600