Budget 2013

Note: It must be remembered that these proposals are subject to amendment during the passage of the Finance Bill.
Link to more details of the latest budget information can be found here .

PERSONAL TAXATION

Personal allowance 2013/14 2012/13
general (age under 65) £9,440 £8,105
income limit for personal allowances £100,000 £100,000
born after 5 April 1938 but before 6 April 1948 £10,500
born before 6 April 1938 £10,660
aged 65 or over in tax year £10,500
aged 75 or over in tax year £10,660
age allowance income limit £26,100 £25,400
minimum where income exceeds age limit £9,440 £8,105

Married couple’s allowance (10% relief)*

Married couple’s allowance 2013/14 2012/13
either partner born before 06 April 1935
in year of assessment
£7,915 £7,705
age allowance income limit £26,100 £25,400
minimum where income exceeds limit £3,040 £2,960
Blind person’s allowance *available for civil partners £2,160 £2,100

Income tax rates

**Only applicable to savings income. If taxable non-savings income is above this limit, the starting rate does not apply.

Income tax rates 2013/14 2012/13
Starting savings rate on income up to £2,790**(2011/12 £2,710)
On taxable income
10% 10%
Basic rate up to £32,010 (2011/12 £34,370) 20% 20%
Higher rate on £32,011 (2011/12 £34,371) to £150,000 40% 40%
Additional rate over £150,000 45% 50%
Lower rate on dividend income 10% 10%
Higher rate on dividend income 32.5% 32.25%
Additional rate on dividend income 37.5% 42.25%

Pension schemes allowances

Pension schemes allowances 2013/14 2012/13
Annual allowance £50,000 £50,000
Lifetime allowance £1,500,000 £1,500,000

COMPANY TAXATION

COMPANY TAXATION FY2013 FY2012

Corporation tax rates

Corporation tax rates 2013/14 2012/13
Full rate 23% 24%
Companies with small profit 20% 20%
20% rate limit £300,000 £300,000
marginal relief limit £1,500,000 £1,500,000
marginal relief fraction 3/400 1/100
marginal rate 23.75% 25%

CAPITAL GAINS TAX

CAPITAL GAINS TAX 2013/14 2012/13
Rate – standard rate 23% 24%
Companies with small profit 18% 18%
higher rate 28% 28%
trustees and personal representatives 28% 28%
General exemption limit £10,900 £10,600
Trust generally annual exemption £5,450 £5,300
Entrepreneurs relief 10% 10%

INHERITANCE TAX

Unused nil rate band is transferred to spouse or civil partner, annual gifts of up to £3,000 per donor are exempt

INHERITANCE TAX Transfers after 5 April 2013 and before 6 April 2014
Threshold £325,000
Death rate 40%

VAT

VAT
Standard rate after 3 January 2011 20.0%
Lower rate 5%
Standard rate 1 Jan 2010 to 3 Jan 2011 17.5%
Registration threshold after 1 April 2013 £79,000 pa
Deregistration from 1 April 2013 £77,000 pa

NATIONAL INSURANCE

NATIONAL INSURANCE 2012/13 2012/13 in brackets where different
Class 1 (earnings related) – weekly earnings
Employees Not contracted Contracted out
First £149 (£146) Nil Nil
£149.01 (£146.01) -£770 12% 10.6%
£770.01 – £797 (£817) 12% 12%
Over £797 (£817) 2% 2%
Employees
First £148 (£144) Nil Nil
£148 (£144.01) – £770 13.8% 10.4%
Over £770 13.8% 13.8%

Class 1A and 1B contributions 13.8%

Class 2 contributions (self employed) 2013-14 2012-13
Flat weekly rate £2.70 £2.65
Small earnings exemption limit £5,725 £5,595
Class 3 contributions
Flat weekly rate £13.55 £13.25
Class 4 contributions (self employed)
Between £7,755 and £41,450 (£7,605 and £42,475) 9% 9%
Above these limits 2% 2%

More extensive details of the latest budget information can be found here .

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