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Tax Rates 2012-2013

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Tax Rates 2012-2013

Income tax rates and allowances


Taxable Income
Basic rate band
Basic tax rate
Dividend ordinary rate
Savings rate band
Savings rate
Higher rate band
£34,371 - £150,000
Higher rate tax
Dividend higher rate tax
Additional rate band
Over £150,000
Additional rate tax
Dividend additional rate tax
Allowances that reduce taxable income:  
Personal allowances:  
Age under 65*
Age 65-74**
Age 75 and over**
Blind person's allowance
Allowances that reduce tax:  
Married couple's allowance (MCA)***:  
Age 78 and over
Tax reduction at 10%


*The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 to £116,210, irrespective of age.

**Age related allowances are reduced by £1 for each £2 of income above £25,400 until the non-age related personal allowance of £8,105 is reached.

***The age for MCA is of the elder spouse or civil partner. The loss of tax reduction is 10p for each £2 of income above £25,400 until the minimum of £296 is reached.



2012/13 national insurance rates 


Class 1: 

Earnings per week:
Employee NIC rate (primary):
Below £107 (lower earnings limit LEL)
£107 to £146 (primary threshold PT)*
£146 to £817 (upper earnings limit UEL)
Above £817
Employees' contracted out rate rebate
Earnings per week:
Employer NIC rate (secondary)
Below £144
Above £144


* No NICs are actually payable but a notional Class 1 NIC is deemed to have been paid in respect of earnings between LEL and PT to protect contributory benefit entitlement.



2012/13 self employed national insurance contribution rates 


Annual profits (£) a year*:
Class 2**:
Class 4:
Below £5,595 (SEE)***
£5,595 to £7,605 (LPL)
£7,605 to £42,475 (UPL)
Above £42,475


* The limits are defined as SEE - small earnings exception; LPL - lower profits limit and UPL - upper profits limit.

** Class 2 NICs are paid at a weekly flat rate of £2.65 by all self employed persons unless they have applied for a small earnings exception.

*** The self-employed may apply for exception from paying Class 2 contributions if their earnings are less than, or expected to be less than, the level of the small earnings exception.

2012/13 other national insurance contributions rates 


Married women's reduced rate*
Special Class 2 rate for share fishermen
Special Class 2 rate for volunteer development workers
Class 3 rate**


*Married women's reduced rate is paid only by maried women and certain widows with valid reduced rate elections.

**Class 3 NICs are paid by contributors to make the year a qualifying year for basic State Pension and Bereavement Benefit purposes.



2012/13 working and child tax credit rates and thresholds


Working Tax Credit*:  
Basic element
Couple and lone parent element
30 hour element
Disabled worker element
Severe disability element
Childcare element:  
maximum eligible cost for one child
maximum eligible cost two or more children
per cent of eligible costs covered
Child Tax Credit:  
Family element
Child element
Disabled child element
Severely disabled child element
Income thresholds and withdrawal rates**:  
Income threshold
Withdrawal rate (per cent)
First threshold for those entitled to Child Tax Credit only
Income rise disregard
Income fall disregard


* As announced in the June Budget 2010, the 50 plus element of the Working Tax Credit will be removed from April 2012.

** As announced in the June Budget 2010, the family element of the Child Tax Credit will taper immediately after the child element from April 2012.

2012/13 child benefit and guardian's allowance


Child Benefit:  
First child rate
Rate for additional children
Guardian's Allowance:



2012/13 tax-free savings accounts


Individual Savings Account (ISA) subscription limit:  
Overall limit
of which cash
of which stocks & shares
Junior ISA subcription limit:
Child Trust Fund (CTF) subscription limit:


Air passenger duty (APD)


APD distance bands APD rates (£ per passenger from 1 April 2012) 
Miles from UK  Reduced rate* Standard rate**
Band A (0-2000)  £13  £26
Band B (2001-4000)  £65  £130
Band C (4001-6000)  £81  £162
Band D (over 6000) £92 £184


* In lowest class of travel

** In other than lowest class of travel




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