Accountancy and Consultancy 			Services

Income Tax Rates

Rate this item
(0 votes)

Income Tax

Tax bands and rates
2012/13
2011/12
Basic rate band
£34,370
£35,000
Basic tax rate
20%
20%
Dividend ordinary tax rate
10%
10%
Savings rate band
£2,710
£2,560
Savings rate
10%
10%
Higher rate band
£34,371-£150,000
£35,001-£150,000
Higher tax rate
40%
 
40%
Dividend higher tax rate
32.5%
32.5%
Additional rate band £150,000+ £150,000+
Additional tax rate
50%
50%
Dividend additional tax rate
42.5%
42.5%
Allowances that reduce taxable income
Personal allowances under 65:
£8,105
£7,475
  65 to 74:
£10,500
£9,940
  75 and over:
£10,660
£10,090
Blind person's allowance  
£2,100
£1,980

 

Age related allowances are reduced by £1 for each £2 of income above £25,400 (2011/12 £24,000), until the minimum of £8,105 (2011/12 £7,475) is reached. The minimum personal allowance is reduced, by £1 for each £2 of income from £100,000 (2011/12 - £100,000) to £116,210 (2011/12 - £114,950).

 

Allowances that reduce tax
Married couple's allowance (MCA) 78 and over (77 and over in 2011/12):
£7,705
£7,295
Tax reduction at 10%  
£770.50
£729.50

 

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 (2011/12 £24,000) until the minimum of £296 (2011/12 £280) is reached.  All ages as at 5 April 2013 (5 April for 2011/12).

 

Non domicile charge
Charge for adult non UK domiciliary - applies after UK residence in seven or
more of the previous tax years
£50,000
£30,000
Tax shelters  
 
 
 

Enterprise Investment Scheme (EIS) up to

£1,000,000
£500,000
Maximum amount for EIS carry back
£50,000
£50,000
Income tax relief
30%
30%

Venture Capital Trust (VCT) up to

£200,000
£200,000
Golden handshake max.
£30,000
£30,000
Rent a room - exempt on gross annual rent up to
£4,250
£4,250
Construction industry scheme - deduction rate  
 
 
 
Standard rate - registered
20%
20%
Higher rate - not registered
30%
30%

 

More in this category: Tax Rates 2012-2013 »
172_cash.jpg

News in Brief


Warning: Creating default object from empty value in /var/www/vhosts/davidblair.co.uk/httpdocs/modules/mod_feed/helper.php on line 37

BBC News - Business