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Tax data applicable to the year from 6th April 2014 to 5th April 2015

Income tax

Rate of tax on bands of taxable income

£0 - £2,880
£0 - £31,865
£31,866 - £150,000
Over £150,000

Savings income is chargeable at rates of 10%, 20%, 40% and 45%.

UK dividends carry a notional tax credit of 10%. Dividends represent the top slice of income. If that income falls within the basic rate limit the applicable rate is 10%, equal to the tax credit. Higher and additional rate tax-payers are liable to tax at 32.5% or 37.5% on dividends.

 



%

10
20
40
45

 

Allowances

Personal allowance
Age allowance
65-75
over 75





£10,000

£10,500
£10,660



Corporation tax

Rate of tax on bands of taxable profit


£0 - £300,000
£300,001 - £1,500,000
over £1,500,000



%


20
21.25
21


Capital allowances (per annum)

Annual Investment Allowance

 

%

£500,000

 







Inheritance tax

Rate of tax on chargeable estates

Tax due on part of estate in excess of probate value of £325,000

Taper relief: on gifts within 7 years of death:

0 - 3 years of death
3 - 4 years
4 -5 years
5 - 6 years
6 - 7 years

%

40


% of charge of tax due at death rates

100
80
60
40
20

Other reliefs

Agricultural and business property

Annual exemption

Gifts on marriage by:

parent
other ancestor
party to the marriage
other person

small gifts

%

100

£3,000


£5,000
£2,500
£2,500
£1,000

£250

Capital gains tax

Gains are taxed as the top slice income at rates of 18% or 28% depending on income.

 

Entrepreneur's rate relief:

 








10%

Other reliefs

Annual exemption - individuals
Annual exemption - trusts

Chattel exemption

In addition there are exemptions for individuals for:
principal private residence
transfers between husband and wife
motor vehicles
gilt-edged stocks and foreign currency acquired for personal expenditure



£11,000
£5,500

£6,000

Value added tax

Rates of tax on chargeable supplies:
standard
reduced (applicable to domestic fuel and power)

Exempt supplies:
Land, insurance, postal services, betting, gaming and lotteries, finance, education, health and welfare, burial and cremation, subscriptions to trade unions, professional and other public interest bodies, sport, sports competitions and physical education, works of art, charity fund raising, cultural services, supplies of goods where input tax cannot be recovered and investment gold.


%

20
5


Registration threshold

De-registration limit

Zero-rated supplies:
Food, sewerage services and water, books, construction of buildings, protected buildings, international services, transport, caravans and houseboats, gold, bank notes, drugs and medicines, aids for disabled people, imports, exports, charities, protective clothing and footwear.


£79,000

£77,000

National insurance


Contributions:
Class I - employees - earnings £153 - £805 per week

over £805 per week

Class I - employers - earnings from £153 per week

Class II (self-employed) per week
Class IV (self-employed) additional due on profits of between £7,956 and £41,865 in the year
above £31,865

Class III - voluntary contributions - per week






12%


2%

13.8%

£2.75

9%
2%

£13.90

 

State benefits

taxable: retirement pensions
single person/widow's pension
married couple

non-taxable benefits, include:
maternity allowance, child benefit, one-parent benefit, constant attendance allowance, attendance allowance, Christmas bonus, council tax benefit, disability allowances, earnings top-up, family credit, housing benefit, income support, redundancy payment and winter fuel allowance.




£5,727.80
£9,159.80