2015 rates and allowances

Published: 08 Mar 2015

 

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The following is a list of many of the main tax rates for 2014-15 which altered in the following tax year.  For up to date rates and supporting notes,please consult the tax rates menu.

 

Basic State Pension

 

  2014-15

 

2013-14

 

 

Weekly        

Annual                Weekly        Annual             
Single person £113.10 £5,881.20 £100.15 £5,727.80
Spouse's/civil partner's         £67.80 £3,525.60 £66.00 £3,432.00
Total married person £180.90 £9,406.80 £176.15

£9,159.80

 

Pension credit - standard minimum guarantee

 

       
Single £148.35 £7,714.20 £145.60 £7,560.80
Couple £226.50 £11,778 £222.05 £11,645.60

 

 

 

Corporation tax

 

 

 

Financial year to

 

31 March 2015 31 March 2014
First £300,000                                                    20%                         20%
Next £1,200,000 21.25% 23.75%
On profits over £1,500,000 21% 23%
Tax credit on dividends  10% 10%
Marginal relief fraction 1/400 3/400

 

 

 

Capital gains tax

 

 

  2014-15 2013-14
Standard rate 18% 18%
Higher rate 28% 28%
Entrepreneurs' relief - effective rate 10% 10%
Entrepreneurs' relief £10 mil. £10 mil.

 

Annual exemption

 

   

Individual

£11,000 £10,900
settlement(s) (spread over total number) £5,500 £5,450

 

Chattels exemption

 

   
(proceeds per item or set) £6,000  £6,000
Marginal relief 5/3 excess over £6,000  5/3 Excess over £6,000

 

 

 

Individual savings account

 

 

 

Individual savings accounts (ISAs)          From 1 July 2014 From 6 April 2014            

2013-14

 

Overall investment limit £15,000 £11,880 £11,520
Including cash maximum of N/a £5,940 £5,760
Junior ISA £4,000 £3,840 £3,720

 

 

Stamp duty land tax

 

 

 

Residential property Up to 3 December 2014 2013-14
Up to £125,000 Zero Zero
Over £125,000 to £250,000 1% 1%
Over £250,000 to £500,000 3% 3%
Over £500,000 (companies) 15% n/a
Over £500,000 to £1 million 4% 4%
Over £1 million to £2 million 5% 5%
Over £2 million (individuals) 7% 7%
Over £2 million (companies) n/a 15%

 

The 7% and 15% rates were introduced for property transactions from 22 March 2012.  The lower threshold for companies took effect from 20 March 2014, after the 2014 Budget announcement.

 

Stamp duty land tax (SDLT) is charged at a fixed percentage on consideration for the transfer of land. There is no stamp duty where the transaction is a gift, a transaction on divorce, or certain variations of a will.

From 21 March 2012, UK property acquired by companies and similar corporate bodies, regardless of where the company is resident, are taxed at a higher rate of SDLT.

 

 

Advisory fuel rates

 

 

From 1 December 2013

  Rates per mile
  £ £ £
Engine capacity Petrol gas diesel
Less than 1,400 cc 0.14 0.09 0.00
1401 to“ 2,000 cc 0.16 0.11 0.00
More than 2,000 cc 0.24 0.16 0.00
1600cc or less 0.00 0.00 0.12
1601cc to 2,000 cc 0.00 0.00 0.14
Over“ 2,000 cc 0.00 0.00 0.17

 

National Insurance Contributions on Employment

 

Thresholds for Class 1 National Insurance Contributions (NICs)

 

  2014-15 2013-14
Thresholds Annual Monthly Weekly Annual Monthly Weekly
Lower earnings limit £5,772 £481 £111 £5,668 £473 ;£109
Primary earnings threshold £7,956 £663 £153 £7,755 £646 £149
Secondary earnings threshold £7,956 £663 £153 £7,696 £641 £148
Upper accruals point £40,040 £3,337 £770 £40,040 £3,337 £770
Upper earnings limit £41,865 £3,489 £805 £41,450 £3,454 £797

 

Class 1 NIC rate on earnings

 

  2014-15 2013-14
  Employee Employer Employee Employer
Between primary threshold and upper earnings limit 12% 13.8% 12% 13.8%
Above upper earnings limit 2% 13.8% 2% 13.8%
Contracted out rebate 1.4% 3.4% 1.4% 3.4%

 

 

Class 1(A) NICs

 

  2014-15 2013-14
Rate 13.8% 13.8%

 

 

National insurance on Self-employment

Class 2 NICs

 

  2014-15 2013-14
  Weekly Yearly Weekly Yearly
Flat rate £2.75 £143 £2.70 £140.40
Small earnings exception limit   £5,885   £5,752

 

 

Class 4 NICs

 

  2014-15 2013-14
  Profit band Rate Profit band Rate
Between lower profits and upper profits limit £7,956 to £41,865 9% £7,755 to £41,450 9%
Above upper profits limit   2%   2%

 

 

Class 3 NICs

 

  2014-15 2013-14
  Weekly Yearly Weekly Yearly
Flat rate £13.90 £722.80 £13.55 £704.60

 

Rates of income tax

 

Rate

2014-15

2013-14

Starting rate: 10%

£0 to £2,880

£0 to £2,790

Basic rate: 20%

£0 to £31,865

£0 to £32,010

Higher rate: 40%

£31,865 to £150,000

£32,011 to £150,000

Top rate: 45%

Over £150,000

Over £150,000

 

 

Rates of income tax on dividends

 

Rate

2014-15

2013-14

Basic rate: 0%

£0 to £31,865

£0 to £32,010

Higher rate: 25%

£31,865 to £150,000

£32,011 to £150,000

Top rate: 30.5%

Over £150,000

Over £150,000

 

 

Personal allowances

 

Income Tax allowances

2014-15

2013-14

Personal Allowance (basic)

£10,000

£9,440

Income limit for Personal Allowance

£100,000

£100,000

Personal Allowance for people born between 6 April 1938 and 5 April 1948

£10,500

£10,500

Personal Allowance for people before 6 April 1938

£10,660

£10,660

Income limit for the allowances for those born before 6 April 1948

£27,000

£26,100

Married Couple's Allowance (born before 6th April 1935)

£8,165

£7,915

Minimum amount of Married Couple's Allowance

£3,140

£3,040

Blind Person's Allowance

£2,230

£2,160

 

 

 

Enterprise investment scheme and Venture capital trusts

 

 

 

Income tax relief limits effective 2014/15 are as follows:

 

  EIS SEED VCT
  £ £ £
Annual Investment limits £1,000,000 200,000 £500,000
Income tax relief rates 30% 50% 30%
Are dividends taxable? Yes Yes No
Capital gains tax exempt Yes Yes Yes
Minimum holding period to prevent capital gains tax clawback 3 years 3 years N/a
Minimum holding period to prevent income tax clawback 3 years
3 years 5 years
Income tax relief for capital losses Yes Yes No
Business property relief for inheritance tax purposes Yes Yes No

 

 

Pension rates

 

 

 

 

2014-15 2013-14

Lifetime Allowance

£1,250,000 £1,500,000

Annual Allowance

£40,000 £50,000

Lifetime Allowance Charge

55% on excess paid as a lump sum.   25% on excess not taken as a lump sum. 55% on excess paid as a lump sum.   25% on excess not taken as a lump sum.

Annual Allowance Charge

20%-45%, depending on other income 20%-45%, depending on other income

Maximum pension contribution with tax relief

100% of relevant UK earnings or £3,600, (subject to the annual allowance) 100% of relevant UK earnings or £3,600, (subject to the annual allowance)

 

 

Car Benefit Charge 2014-15

 

Co2 Emissions g/km Petrol Engine % Diesel Engines %
75 or less 5 8
76-94 11 14
95-99 12 15
100-104 13 16
105-109 14 17
110-114 15 18
115-119 16 19
120-124 17 20
125-129 18 21
130-134 19 22
135-139 20 23
140-144 21 24
145-149 22 25
150-154 23 26
155-159 24 27
160-164 25 28
165-169 26 29
170-174 27 30
175-179 28 31
180-184 29 32
185-189 30 33
190-194 31 34
195-199 32 35
200-204 33 35
205-209 34 35
210 g/kg and above 35 35

 

Van benefit charge

 

 

  2014-15 2013-14
Van benefit charge £3,090 £3,000

 

 

Fuel Benefit charge

 

  2014-15 2013-14
Car Fuel Benefit Charge Multiplier £21,700 £21,100
Van Fuel Benefit Charge Multiplier £564 £564

 

 

Proposals for 2015-16

 

The lowest percentage is expected to increase from 0% to 9% from 2015-16. This measure will create a taxable benefit for the provision of electric cars and other vehicles with zero CO2 emissions. Preferential rates for cars with co2 emissions below 75 g/km are also set to be abolished.

 

 

Rate of the annual investment allowance

 

 

 

From 1 April 2014 to 31 December 2015 2013/14
Annual investment allowance 100% 100%
Main rate on general pool 18% 18%
Special rate pool 8% 8%
Know-how and patents 25% 25%

 

 

Annual investment allowance limit

 

 

 

From 1 April 2014 to 31 December 2015 2013/14
Annual investment allowance £500,000 £250,000

 

 

The annual investment allowance was due to increase to £250,000 for a temporary period of two years from 1 January 2013. The increase will take effect from 6 April 2014 (rather than 1 April) for unincorporated businesses. The AIA will reduce to £25,000 from 1 January 2016.

 

The balance of capital expenditure which is not relieved by the annual investment allowance is not relieved by the AIA is added to the main pool and tax relief is provided at the above rates. The balance of certain expenditure, such as on features integral to a building, are added to a special rate pool.

 

Capital allowances for cars

 

 

 

2014-15 2013/14
CO2 emissions below 95 g/km 100% 100%
CO2 emissions between 95 g/km and 130 g/km 18% 18%
CO2 emissions over 130 g/km 8% 8%

 

 

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