| Rates | 2015/16 | 2016/17 | 2017/18 |
|---|---|---|---|
| Basic rate of 20% on income up to | £31,785 | £32,000 | £33,500 |
| Higher rate of 40% on income | £31,786 to £150,000 | £32,001 to £150,000 | £33,501 to £150,000 |
| Additional rate on income over £150,000 | 45% | 45% | 45% |
| Starting rate of 0% limited for savings up to | £5,000 | £5,000 | £5,000 |
| Dividends: Basic rate taxpayers | 10% | 7.5% | 7.5% |
| Higher rate taxpayers | 32.5% | 32.5% | 32.5% |
| Additional rate taxpayers | 37.5% | 38.1% | 38.1% |
| Trust rate | 45% | 45% | 45% |
| Trust rate on first £1,000[2] | 20% | 20% | 20% |
| Trust rate on dividends | 37.5% | 38.1% | 38.1% |
Income Tax Rates & Taxable Bands
| Rate | 2010-11 | 2011-12 | 2012-13 |
|---|---|---|---|
| Starting rate for savings: 10%* | £0-£2,440 | £0-£2,560 | £0-£2,710 |
| Basic rate: 20% | £0-£37,400 | £0-£35,000 | £0-£34,370 |
| Higher rate: 40% | £37,401-£150,000 | £35,001-£150,000 | £34,371-£150,000 |
| Additional rate: 50% | Over £150,000 | Over £150,000 | Over £150,000 |
*The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
National Insurance Rates
Are you self employed?
| 2010-11 | 2011-12 | 2012-13 | |
|---|---|---|---|
| Class 2 rate WEEKLY | £2.40 | £2.50 | £2.65 |
| Class 2 small earnings exception | £5,075 per year | £5,315 per year | £5,595 per year |
| Class 4 lower profits limit | £5,715 per year | £7,225 per year | £7,605 per year |
| Class 4 upper profits limit | £43,875 per year | £42,475 per year | £42,475 per year |
| Class 4 rate between lower profits limit and upper profits limit | 8% | 9% | 9% |
| Class 4 rate above upper profits limit | 1% | 2% | 2% |
Are You Employed?
| £ per week | 2010-11 | 2011-12 | 2012-13 |
|---|---|---|---|
| Lower earnings limit, primary Class 1 | £97 | £102 | £107 |
| Upper earnings limit, primary Class 1 | £844 | £817 | £817 |
| Employees’ primary Class 1 rate between primary threshold and upper earnings limit | 11% | 12% | 12% |
| Employees’ primary Class 1 rate above upper earnings limit | 1% | 2% | 2% |
| Class 1A rate on employer provided benefits (1) | 12.8% | 13.8% | 13.8% |
Corporation Tax Rates
Rates for financial years starting on 1 April – If your financial year does not begin on 1 April, call us to find out how this would affect your business.
| Rate | 2010 | 2011 | 2012 | 2013 |
|---|---|---|---|---|
| Small profits rate* | 21%* | 20%* | 20%* | |
| Small profits rate can be claimed by qualifying companies with profits at a rate not exceeding | £300,000 | £300,000 | £300,000 | |
| Marginal Relief Lower Limit | £300,000 | £300,000 | £300,000 | |
| Marginal Relief Upper Limit | £1,500,000 | £1,500,000 | £1,500,000 | |
| Standard fraction | 7/400 | 3/200 | 1/100 | |
| Main rate of Corporation Tax* | 28%* | 26%* | 24%* | 23%* |
| Special rate for unit trusts and open-ended investment companies | 20% | 20% | 20% |
Main Rate of Corporation Tax
The main rate of Corporation Tax applies when profits are at a rate exceeding £1,500,000, or where there is no claim to another rate, or where another rate does not apply.
Capital Gains Tax rates and annual tax-free allowances
Each tax year nearly everyone who is liable to Capital Gains Tax gets an annual tax-free allowance – known as the ‘Annual Exempt Amount’. You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above this amount.
Annual Exempt Amounts
| Tax rates – individuals | 2015/16 | 2016/17 |
|---|---|---|
| Standard rate | 18% | 10% |
| Higher rate | 28% | 20% |
| Standard rate for gains on residential property and carried interest | N/A | 18% |
| Higher rate for gains on residential property and carried interest | N/A | 28% |
| Trust rate | 28% | 20% |
| Trust rate for gains on residential property | N/A | 28% |
| Exemptions | 2015/16 | 2016/17 |
|---|---|---|
| Individuals, PRs and some trustees | £11,100 | £11,100 |
| Most trustees | £5,500 | £5,550 |
| Chattels exemptions: proceeds up to[1] | £6,000 | £6,000 |
Notes: [1] For consideration over £6,000 the chargeable gain is limited to five-thirds of excess over £6,000
| Entrepreneurs’ relief | 2015/16 | 2016/17 | 2017/18 |
|---|---|---|---|
| Relief rate | 10% | 10% | TBA |
| Lifetime limit | £10m | £10m | TBA |
| Relief rate for long term external investors | N/A | 10% | 10% |
| Lifetime limit for long term external investors | N/A | £10m | £10m |
Rates For Capital Gains Tax – 2011-12
The following Capital Gains Tax rates apply:
- 18 per cent and 28 per cent tax rates for individuals (the tax rate you use depends on the total amount of your taxable income, so you need to work this out first )
- 28 per cent for trustees or for personal representatives of someone who has died
- 10 per cent for gains qualifying for Entrepreneurs’ Relief
If you’re not sure how to work out your taxable income, Call Livingstones and we can help you calculate the most effective way to use the exemptions in your favour.
Inheritance Tax Thresholds
The Inheritance Tax threshold (or ‘nil rate band’) is the amount up to which an estate will have no Inheritance Tax to pay.
If the estate – including any assets held in trust and gifts made within seven years of death – is more than the threshold, Inheritance Tax will be due at 40 per cent on the amount over the nil rate band. From 6 April 2012 people who leave 10 per cent or more of their net estate to charity can choose to pay a reduced rate of Inheritance Tax of 36 per cent.
| From | To | Threshold/nil rate band |
|---|---|---|
| 6 April 2009 | 5 April 2015 | £325,000 |
Stamp Duty Land Tax Rates & Thresholds
Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.
Residential land or property SDLT rates and thresholds
| Purchase price/lease premium or transfer value | SDLT rate |
|---|---|
| Up to £125,000 | Zero |
| Over £125,000 to £250,000 | 1% |
| Over £250,000 to £500,000 | 3% |
| Over £500,000 to £1 million | 4% |
| Over £1 million to £2 million | 5% |
| Over £2 million from 22 March 2012 | 7% |
| Over £2 million (purchased by certain persons including corporate bodies) from 21 March 2012 | 15% |
Working & Child Tax Credits Rates
Working Tax Credit
| £ per year (unless stated) | 2012-13 | 2011-12 | |
|---|---|---|---|
| Basic element | £1,920 | £1,920 | |
| Couple and lone parent element | £1,950 | £1,950 | |
| 30 hour element | £790 | £790 | |
| Disabled worker element | £2,790 | £2,650 | |
| Severe disability element | £1,195 | £1,130 | |
| 50+ Return to work payment (16-29 hours) | Removed | £1,365 | |
| 50+ Return to work payment (30+ hours) | Removed | £2,030 |
Childcare element of the Working Tax Credit
| £ per year (unless stated) | 2012-13 | 2011-12 | |
|---|---|---|---|
| Maximum eligible cost for one child | £175 per week | £175 per week | |
| Maximum eligible cost for two or more children | £300 per week | £300 per week | |
| Percentage of eligible costs covered | 70% | 70% |
Child Tax Credit
| £ per year (unless stated) | 2012-13 | 2011-12 | |
|---|---|---|---|
| Family element | £545 | £545 | |
| Child element | £2,690 | £2,555 | |
| Disabled child element | £2,950 | £2,800 | |
| Severely disabled child element | £1,190 | £1,130 |
Income Thresholds & Withdrawal Rates
| £ per year (unless stated) | 2012-13 | 2011-12 | |
|---|---|---|---|
| First income threshold | £6,420 | £6,420 | |
| First withdrawal rate | 41% | 41% | |
| Second income threshold | Withdrawn | £40,000 | |
| Second withdrawal rate | 41% | 41% | |
| First threshold for those entitled to Child Tax Credit only | £15,860 | £15,860 | |
| Income disregard | £10,000 | £10,000 | |
| Income fall disregard | £2,500 | N/A |
High income child benefit charge
Child benefit is receivable by a person responsible for each child until they reach 16, or 20 if they stay in education or training. If the person (or their spouse or partner) has adjusted net income above £50,000, the person with the highest income has an income tax charge. If their adjusted net income is more than £60,000 a year, the tax charge equals the child benefit received and the charge is 1% of benefit for each £100 of income between £50,000 and £60,000. High income child benefit charge applies from January 2013.
