Tax Tables 2014/2015

Transcription

1 Tax Tables 2014/2015

2 Income tax Individuals Nonsavings Savings Dividends* Band of taxable income Band of taxable income - 10% - 0-2, ,790 20% 20% 10% 0-31, ,010 40% 40% 32.5% 31, ,000 32, ,000 45% 45% 37.5% Over 150,000 Over 150,000 The 10% starting rate is for savings income only. If taxable non-savings income is above this limit, then the 10% band is not applicable. Trustees Life interest Discretionary Non-savings 20% 45% Savings 20% 45% Dividends* 10% 37.5% Standard rate band** n/a 1,000 * Dividends carry a 10% non-repayable tax credit ** Income in the standard rate band is taxed at 10% or 20% as appropriate Personal allowances Personal allowance: Born after 5/4/1948 aged under 65 10,000 9,440 Born after 5/4/1938 but before 6/4/1948 age between 10,500 10, Born before 6/4/1938 over 75 10,660 10,660 Income limit for personal allowance* 100, ,000 Income limit for age allowance** 27,000 26,100 Married couple s allowance for those born before 6/4/1935*** 8,165 7,915 Blind person s allowance 2,230 2,160 * Personal allowance reduced by 1 for every 2 of income over income limit Personal allowance is exhausted when income exceeds 120,000 (2013/ ,880) ** Age allowance reduced by 1 for every 2 of income over income limit for age allowance, initially to a minimum of the standard personal allowance; further reduced if income over 100,000 *** Minimum amount 3,140 (2013/2014 3,040). Relief restricted to 10% Corporation tax Small companies rate: 20% (YE 31/3/ %) Effective marginal rate: 21.25% (YE 31/3/ %) Main rate: 21% (YE 31/3/ %) * The taxable profits bands depend on the number of associated companies Taxable profits* year ended 31/03/2015 Taxable profits* year ended 31/03/ , , ,001-1,500, ,001-1,500,000 1,500,001 and over 1,500,001 and over Capital gains tax (CGT) Individuals Exempt amount 11,000 10,900 Taxed as top slice of income: Up to basic rate band 31,865 (2013/ ,010) 18% 18% Above basic rate band 28% 28% Trustees Exempt amount 5,500 5,450 All gains at flat rate 28% 28% Entrepreneurs Relief (ER) ER may be available in respect of gains made on the disposal of certain business assets, including shares in trading companies where, inter alia, the vendor owns at least 5%* and is an employee of the company. A flat rate of 10% applies. Assets must have been owned for at least a year* to qualify for the relief and there is a lifetime limit on the gains for which the relief can be claimed, as follows: Period ER lifetime limit 6/4/2008 to 5/4/2010 1,000,000 6/4/2010 to 22/6/2010 2,000,000 23/6/2010 to 5/4/2011 5,000,000 6/4/2011 onwards 10,000,000 * Different rules apply to shares acquired under an Enterprise Management Incentive Scheme Inheritance tax (IHT) Band* Tax rate** On death 0-325,000 Over 325,000 nil 40% Spousal exemption is limited to 325,000 where the transfer is to a non-uk domiciled spouse who does not elect to be treated as UK domiciled. An individual will become deemed domiciled in the UK from 6 April 2014 if they became UK resident during 1998/1999. Where there has been a break in UK residency or an election to be UK domiciled is to be made, professional advice should be sought. * A surviving spouse or civil partner is entitled to the nil rate band to the extent unused by their deceased spouse or civil partner ** Where 10% or more of the deceased s net estate is left to charity, the IHT rate on the remainder of the chargeable estate is 36% Lifetime gifts Lifetime gifts to individuals are exempt from IHT if the donor survives seven years. Chargeable lifetime gifts are taxed at 20% above the available nil rate band. Tax charges on gifts within seven years of death are as set out below: Years before death % of death rates No repayments available if tax paid on chargeable lifetime gifts exceeds charge at death. Other exemptions Certain gifts out of income. Small gifts: 250 per donee. Annual gifts: 3,000 per donor. In consideration of marriage: parent 5,000; grandparent, remoter ancestor or party to marriage 2,500; other 1,000.

3 National Insurance contributions (NICs) Class 1 Not contracted-out Employee Employer 0-153pw nil 0-153pw nil 153pw - 805pw 12% Over 153pw 13.8% Over 805pw 2% Contracted out Employee Employer Rebate/reduction on earnings between 111pw and 770pw: salary related scheme 1.4% 3.4% Other classes of National Insurance Class 1A/1B 13.8% Class pw where earnings exceed 5,885pa Class 3 (voluntary) 13.90pw Class 4 9% on profits between 7,956 and 41,865 and 2% above 41,865 Employment allowance, certain employers qualify for a 2,000 reduction in the amount of NICs they pay (restrictions apply). Remittance Basis Charge (RBC) An individual who is not domiciled in the UK may be eligible to make a claim to be taxed on the remittance basis in the UK for a tax year. Those who have been resident in the UK for more than seven years may need to pay an RBC if a claim is made as follows: For the year ended 5 April 2015 Will need to pay RBC if became (and remained) resident Amount of RBC in the year ended: 5/4/ ,000 5/4/ ,000 If there has been a break in UK residence then this may, in some circumstances, reset the clock for this purpose. Professional advice should be sought regarding residence, domicile and the benefit of making a remittance basis claim. Annual Tax on Enveloped Dwellings (ATED) Annual tax payable by companies or collective investment vehicles (and partnerships where a partner is a company) on high value residential property. Property value on 1 April /2015* 2013/2014 2,000,000** to 5,000,000 15,400 15,000 5,000,000 to 10,000,000 35,900 35,000 10,000,000 to 20,000,000 71,850 70,000 20,000,000 and over 143, ,000 Relief may be claimed in certain limited circumstances. * Tax increases by CPI each year ** Threshold will be reduced to 1,000,000 from 1 April 2015 and to 500,000 from 1 April 2016, with the annual tax being 7,000 and 3,500 respectively Stamp Duty and Stamp Duty Land Tax (SDLT) Stamp Duty is charged at the rate of 0.5% on the transfer of shares valued at greater than 1,000. SDLT is charged on the transfer of UK property and on most lease premiums according to the value and the use. There is no Stamp Duty or SDLT on most gifts. The 2014/2015 SDLT rates are as follows: Rate Residential bands Commercial bands 0% 0-125, ,000 1% 125, , , ,000 3% 250, , , ,000 4% 500,001-1,000,000 Over 500,000 5% 1,000,001-2,000,000 n/a 7% Over 2,000,000 n/a 15%* Over 500,000** Mixed use is apportioned * Only applies to certain non-natural persons. Relief may be claimed in certain limited circumstances ** Rate applies from 20 March Before this 15% only applied to value over 2,000,000 VAT Standard rate 20% Reduced rate 5% applies to certain specified categories of goods Turnover thresholds From 1/4/2014 From 1 /4/2013 Registration 81,000 79,000 De-registration 79,000 77,000 Cash accounting 1,350,000 1,350,000 Annual accounting 1,350,000 1,350,000 Flat rate scheme 150, ,000 Capital allowances Annual Investment Allowance (AIA) 500,000* 250,000 Plant and machinery**: Main rate pool 18% 18% Short life assets 18% 18% Special rate pool 8% 8% Energy-saving technology*** 100% 100% Certain low CO 2 emission cars 100% 100% 100% Initial allowances for: certain energy saving technology; research and development; and business premises renovation (conditions apply) * With effect from 1 April 2014 (companies) or 6 April 2014 (unincorporated businesses) until 31 December 2015 ** On reducing balance *** Loss-making companies may surrender losses for a PAYE tax credit. The qualifying list changes each year and therefore should be regularly reviewed Individual savings account (ISA) 2014/2015* 2013/2014 Total annual ISA allowance of 15,000 ( 11,880) 11,520 Equities up to 15,000 ( 11,880) 11,520 Cash up to 15,000 ( 5,940) 5,760 Junior ISA limit 4,000 ( 3,840) 3,720 * Applies from 1/7/2014. In period 6/4/2014 to 30/6/2014 thresholds as indicated in brackets

4 Tax relief for qualifying research & development Small and medium-sized enterprises* 225% 225% Large companies 130% 130% * Loss-making companies may surrender for a tax credit, subject to detailed conditions Enterprise Investment Scheme (EIS) & Seed EIS (SEIS) Cash subscriptions for newly issued ordinary shares of unquoted (including AIM) trading companies satisfying certain conditions. Investors must also satisfy certain conditions. Income tax relief individuals only EIS SEIS Maximum investment 1,000, ,000 Income tax relief EIS and SEIS shares which attract income tax relief will be exempt from CGT (conditions apply). There is a facility to carryback 100% of investment for one year (subject to usual limits). EIS deferral relief individuals and certain trusts No minimum or maximum subscription. CGT deferral on gains realised three years before and one year after subscription. SEIS CGT reinvestment relief 50% exemption from CGT for gains made in the tax year which are reinvested in an SEIS company, subject to certain time limits. Venture Capital Trusts (VCTs) Investments into VCTs attract income tax relief at 30% on up to 200,000 per year, and dividends and gains in respect of the VCT shares are tax free. The shares must be held for five years or more. Detailed conditions must be satisfied. Pension schemes Stakeholder limit* Annual allowance** Lifetime allowance*** 30% 3,600 40,000 1,250,000 * Contributions up to this level will benefit from tax relief regardless of earnings ** Tax relief will be due on contributions up to a maximum of earnings or the annual allowance. There are no facilities for the carry back or carry forward of contributions but eligible members of registered pension schemes may carry forward unused annual allowance for three years *** The maximum amount of pension savings that can benefit from tax relief during an individual s lifetime, subject to any pension protection in place 50% Car benefits % of list price emissions of 0g/km 0% emissions of >0g/km but < 76g/km 5% emissions of > 75g/km but < 95g/km 11% Each additional 5g/km of CO 2 when CO 2 emissions are over 94g/km 1% Additional percentage if diesel 3% Maximum charge, including diesel supplement 35% Where the car is registered after 1 January 1998 and there is no CO 2 figure, there are HMRC rates based on engine size. The benefit for cars registered before 1 January 1998 is also based on engine size. There is no maximum list price to which the relevant % is applied. This was removed from 6 April Classic cars 15 years old or over at the end of the tax year are treated as having a list price of open market value if that is > 15,000 and > original list price. Fuel benefits 2014/2015 (2013/2014) % of 21,700 ( 21,100), with % being same as used for company car scale benefit. Taxable benefit will be a maximum of 7,595 ( 7,385). Company van benefit 2014/2015 (2013/2014) Company van business and private use 3,090 ( 3,000) Company van business use only (insignificant nil (nil) private use) Fuel for private use 581 ( 564) Statutory mileage rates employee s vehicle Cars and vans: first 10,000 miles additional miles additional passenger Motorcycles Bicycles Advisory fuel rates company car From 1 March 2014* Engine size Petrol LPG Engine size Diesel 0-1,400cc 14p 9p 0-1,600cc 12p 1,401-2,000cc 16p 11p 1,601-2,000cc 14p Over 2,000cc 24p 17p Over 2,000cc 17p * Rates apply to all journeys on or after 1 March 2014 until further notice. Rates are reviewed at various intervals throughout the year 45p 25p 5p 24p 20p

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