News & Update - Rothera

News & Update

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
	2013/14	2012/13
Personal allowance
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)*
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	£2,160	£2,100
*available for civil partners
Income tax rates

Starting savings rate on income up to £2,790**(2011/12 £2,710)	10%	10%
On taxable income
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%
**Only applicable to savings income. If taxable non-savings income is above this limit, the starting rate does not apply.
Pension schemes allowances

Annual allowance	£50,000	£50,000
Lifetime allowance	£1,500,000	£1,500,000
COMPANY TAXATION

	FY2013	FY2012
Corporation tax rates


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
	2013/14	2012/13
Rate - standard rate	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
	Transfers after 5 April 2013 and before 6 April 2014
Threshold	£325,000
Death rate	40%
Unused nil rate band is transferred to spouse or civil partner, annual gifts of up to £3,000 per donor are exempt
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
2012/13
2012/13 in brackets where different
Class 1 (earnings related) - weekly earnings
Employees	Not contracted out	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%

Employers
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%
	2013-14	2012-13
Class 2 contributions (self employed)
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 .