Chartered Certified Accountants London Aydan Smith.
Income Tax
Main income tax reliefs 2011-2012 2012-2013
Personal allowance (for income up to £100,000)* £7,475 £8,105
Personal allowance (age 65-74) £9,940 £10,500
Personal allowance (age 75 and over) £10,090 £10,660
Married couple’s allowance
(where born before 06/04/1935)**
£7,295 £7,705
Income limit for age-related allowances £24,000 £25,400
Blind person’s allowance £1,980 £2,100
Enterprise Investment Scheme at 30% / 20% *** £500,000 £1,000,000
Venture Capital Trust at 30% £200,000 £200,000
Rent-a-room tax-free income £4,250 £4,250

* Restricted to savings income and not available if non-savings income exceeds starting rate limit.
** A standard rate band of £1,000 applies, below this level income will be taxed at no more than 20%.

VAT & Stamp Duty
Value Added Tax
Standard Rate 20%*
Registration level from 01.04.12 £77,000 to 31.03.12 £73,000
De-registration limit from 01.04.12 £75,000 to 31.03.12 £71,000

* From 4 January, 2011

Stamp Duty Land Tax
On documents transferring residential property from 25.03.10
Value up to £125,000 Nil
£125,001-£250,000 1%*
£250,001-£500,000 3%
£500,001-£1,000,000 4%

* For first time buyers before 25 March 2012 the rate is nil.
From 6 April 2011, the rate is 5% for properties over £1,000,000.

Car & Fuel
    • Taxable benefit for cars is based on a maximum of 35% of list price, reduced according to the car’s level of CO2 emissions.
    • Zero Emission cars taxable at 0% (until 2014-15)
    • Where CO2 emissions do not exceed 75g / km benefit is 5% of list price (until 2014-15)
    • Benefit is 10% of list price for cars with CO2 emissions up to 120g / km for 2011-12
    • Benefit is 15% of list price for cars with CO2 emissions up to 125 g/km for 2011-12
    • Minimum will increase by 1% for each 5 g/km of extra CO2 emissions*.
    • Diesel cars subject to an extra 3% charge*.
    • Where free fuel for private use is provided, tax charge on fuel is calculated according to scale rate charge as
    • above, applied to a standard figure of £20,200 for 6 April 2013.

* Subject to a maximum of 35% of list price.

Approved mileage allowance payments 2011-2012 2012-2013
Own cars and vans
Up to 10,000 miles (per mile) 45p 45p
Over 10,000 miles (per mile) 25p 25p
Pensions
Personal pensions 2010-2011 2011-2012 2012-2013
Annual Allowance* £255,000 £50,000 £50,000
Lifetime Allowance £1.8m £1.8m £1.5m

An individual can contribute the lower of the allowance or relevant income. An individual without relevant income can contribute up to £3,600. Transitional rules apply from 14 October 2010.

Note: From 2011 – 12, the annual allowance will be linked to the individual’s marginal tax rate.

Basic state pensions 2011-2012 2012-2013
Single person per year £5,311.80 £5,587.40
Dependant’s addition per year £3,187.08 £3,348.80
Married couple total per year £8,498.88 £8,936.20
Capital Gains
Capital Gains 2011-2012 2012-2013
Individuals/Trusts 28%* 18%**
Entrepreneurs’ Relief effective rate 10% 10%

* Remains at 18% for basic rate individuals.
** 28% for higher rate individuals and trusts from 23 June 2010.

Annual Exemptions
Individuals and personal representatives £10,600 £10,600
Trusts generally £5,300 £5,300
Chattels exemption (5/3 taxable on excess) £6,000 £6,000
Entrepreneurs’ Relief lifetime limit of gains £10,000,000 £10,000,000
ISAs
2011-2012 2012-2013
Maximum subscription £10,680 £11,280
of which maximum investments are:
Stocks and shares account £10,680 £11,280
Cash account £5,340 £5,640
Corporation Tax
Corporation Tax To 31.03.12 To 31.03.13
Small Companies Rates (£0-£300,000) 20% 20%
£300,001 – £1,500,000 27.5% 25%
Full rate (£1,500,001+) 26% 24%

 

MAIN CAPITAL ALLOWANCES
Plant and Machinery 2011-2012 2012-2013
Writing down allowance 20% pa 18% pa
Long life assets / integral features / thermal insulation 10% pa 8% pa
100% Annual Investment Allowance (AIA) on expenditure up to £100,000 £25,000

Motor Cars
For cars purchased after 6 April 2009 the annual allowances are dependent on the CO2 emissions of the car:
– for cars with CO2 emissions up to 110 g/km a 100% allowance is available*
– for cars with CO2 emissions between 111 and 160 g/km the annual allowance is 18%
– for cars with CO2 emissions over 160 g/km the annual allowance is 10%, calculated in a special pool. *This allowance is due to expire in 2013
Industrial and Agricultural Buildings 2011-2012 2012-2013
Writing down allowance (straight line) n/a n/a
National Insurance
Employees Class 1 NIC 2011-2012 (Earnings PW) 2012-2013 (Earnings PW)
Earnings at or above lower limit
Standard rate 0% up to £139 0% up to £146
contracted in 12% on £139.01-£817 12% on £146-£817
contracted out 1.4% on £139.01-£770 9.4% on £110.01-£770
contracted out 12% on £770.01-£817 1.4% over £817
contracted in and out 11% on £770.01-£844 1.4% over £844
Employers Class 1 NIC
Contracted In
Below £136 / £144 NIL NIL
Over £136 / £146 13.8% 13.8%
Contracted Out* SR MP SR MP
Below £136 / £144 NIL NIL NIL NIL
£136.01 / £146-£634 10.1% 12.4% 10.1% 12.4%
Over £770 13.8% 13.8% 13.8% 13.8%
Class 2- Self Employed Rate £2.50 per week £2.65 per week
Small Earnings Exception £5,315 per annum £5,595 per annum
Class 3- Voluntary rate £12.60 £13.25
Class 4- Self Employed Rate 9% 9%
Lower Limit of earnings £7,225 per annum £7,605 per annum
Upper Limit of earnings £42,475 per annum £42,475 per annum
2% on earnings over £42,475 per annum £42,475 per annum

SR= Salary related scheme MP= Money purchase scheme

Inheritance Tax
Personal Relief 2011-2012 2012-2013
Free of tax up to* £325,000 £325,000
Tax on excess 40% 40%
Transfers to certain trusts 20% 20%
Overseas domiciled spouse exemption £55,000 £55,000
Annual gifts exemption £3,000 £3,000
Gifts to charities Exempt Exempt
Small gifts to same person £250 £250
Marriage/ civil partnership gifts by:
Parent £5,000 £5,000
Grandparent / party to marriage / civil partnership £2,500 £2,500
Other person £1,000 £1,000