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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 |
Over £150,000 |
Over £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% |
Did you know?
That the Treasury is expecting to raise £154.8 billion from income tax (2011/12 - £152.6 billion).
2013 and beyond
From 2013/14 the age related allowance will be restricted. The allowance of £10,500 for 2012/13 will be restricted to those born after 5 April 1938 but before 6 April 1948. Similarly the £10,660 allowance for 2012/13 will be restricted to those born before 6 April 1938.
Main taxes
Vehicles
Savings
Other taxes
Giving, credits and benefits
Lambert Chapman LLP is a limited liability partnership registered in England and Wales under registered number OC328593. The Registered Office is 3 Warners Mill, Silks Way Braintree, Essex CM7 3GB. Partner denotes member of the LLP.
Registered to carry on audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.
Registered with the Chartered Institute of Taxation as a firm of Chartered Tax Advisors
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