The maximum Working Tax Credit rates are shown below.
Rates | April 2013 | April 2014 |
---|---|---|
Basic element | £1,920 | £1,940 |
Couple and lone parent element | £1,970 | £1,990 |
30 hour element | £790 | £800 |
Disabled worker element | £2,855 | £2,935 |
Severe disability element | £1,220 | £1,255 |
The maximum childcare costs you can claim for, and percentage you can get help with are shown below.
Rates | April 2013 | April 2014 |
---|---|---|
Maximum eligible cost for one child | £175 per week | £175 per week |
Maximum eligible cost for two or more children | £300 per week | £300 per week |
Percentage of eligible costs covered | 70% | 70% |
The maximum Child Tax Credit rates are shown below.
Rates | April 2013 | April 2014 |
---|---|---|
Child Tax Credit Family element | £545 | £545 |
Child element | £2,720 | £2,750 |
Disabled child element | £3,015 | £3,100 |
Severely disabled child element | £1,220 | £1,255 |
The tax credits income thresholds and withdrawal rates are shown below.
Rates and Thresholds | April 2013 | April 2014 |
---|---|---|
Income threshold | £6,420 | £6,420 |
Withdrawal rate (per cent) | 41% | 41% |
Threshold for those entitled to Child Tax Credit only | £15,910 | £16,010 |
Income rise disregard | £5,000 | £5,000 |
Income fall disregard | £2,500 | £2,500 |
The Child Benefit rates are shown below.
Rates | April 2013 | April 2014 |
---|---|---|
Eldest/Only Child | £20.30 | £20.50 |
Other Children | £13.40 | £13.55 |
The Guardian’s Allowance rates are shown below.
Rates | April 2013 | April 2014 |
---|---|---|
Guardian’s Allowance | £15.90 | £16.35 |
The tables below show the rates and thresholds that apply when you operate your payroll or provide expenses and benefits to your employees. Unless otherwise stated, the figures quoted apply between 6 April 2014 and 5 April 2015.
PAYE tax rates, thresholds and codes | Figures to use 2014-15 |
---|---|
PAYE tax threshold | £192 per week £833 per month £10,000 per year |
Basic tax rate | 20% on annual earnings above the PAYE tax threshold and up to £31,865 |
Higher tax rate | 40% on annual earnings from £31,866 to £150,000 |
Additional tax rate | 45% on annual earnings above £150,000 |
Emergency tax code | 1000L |
Understanding employee tax codes
Class 1 NICs thresholds | Figures to use 2014-15 |
---|---|
Lower earnings limit (LEL) | £111 per week £481 per month £5,772 per year |
Primary Threshold (PT) | £153 per week £663 per month £7,956 per year |
Secondary Threshold (ST) | £153 per week £663 per month £7,956 per year |
Upper accrual point(UAP) | £770 per week £3,337 per month £40,040 per year |
Upper earnings limit (UEL) | £805 per week £3,489 per month £41,865 per year |
NICs deductions should not be made on earnings below the Lower Earnings Limit (LEL).
NICs category letter | Earnings at or above LEL up to and including PT | Earnings above the PT up to and including UAP | Earnings above UAP up to and including UEL | Balance of earnings above UEL |
---|---|---|---|---|
A | 0% | 12% | 12% | 2% |
B | 0% | 5.85% | 5.85% | 2% |
C | NIL | NIL | NIL | NIL |
D | 0% | 10.60% | 12% | 2% |
E | 0% | 5.85% | 5.85% | 2% |
J | 0% | 2% | 2% | 2% |
L | 0% | 2% | 2% | 2% |
NICs category letter | NICs rebate on earnings above LEL, up to and including PT |
---|---|
A | N/A |
B | N/A |
C | N/A |
D | 1.40% |
E | NIL |
J | N/A |
L | 1.40% |
National Insurance for employers: the basics
NICs deductions should not be made on earnings below the Lower Earnings Limit (LEL).
NICs category letter | Earnings at or above LEL up to and including ST | Earnings above ST up to and including UAP | Earnings above UAP up to and including UEL | Balance of earnings above UEL | NICs rebate on earnings above LEL, up to and including ST |
---|---|---|---|---|---|
A | 0% | 13.80% | 13.80% | 13.80% | N/A |
B | 0% | 13.80% | 13.80% | 13.80% | N/A |
C | 0% | 13.80% | 13.80% | 13.80% | N/A |
D | 0% | 10.40% | 13.80% | 13.80% | 3.40% |
E | 0% | 10.40% | 13.80% | 13.80% | 3.40% |
J | 0% | 13.80% | 13.80% | 13.80% | N/A |
L | 0% | 10.40% | 13.80% | 13.80% | 3.40% |
National Insurance for employers: the basics
The rates below apply from 1 October 2013 and are likely to change again on 1 October 2014.
Category of worker | Hourly rate from 1 Oct 2013 |
---|---|
Aged 21 and above | £6.31 |
Aged 18 to 20 inclusive | £5.03 |
Aged under 18 (but above compulsory school leaving age) | £3.72 |
Apprentices aged under 19 | £2.68 |
Apprentices aged 19 and over, but in the first year of their apprenticeship | £2.68 |
Type of payment or recovery | Figures to use 2014-15 |
---|---|
Statutory Maternity Pay (SMP) – weekly rate for first six weeks | 90% of the employee’s average weekly earnings |
Statutory Maternity Pay (SMP) – weekly rate for remaining weeks | £138.18 or 90% of the employee’s average weekly earnings, whichever is lower |
Ordinary Statutory Paternity Pay (OSPP) and Additional Statutory Paternity Pay (ASPP) – weekly rate | £138.18 or 90% of the employee’s average weekly earnings, whichever is lower |
Statutory Adoption Pay (SAP) – weekly rate | £138.18 or 90% of the employee’s average weekly earnings, whichever is lower |
SMP/OSPP/ASPP/SAP – proportion of your payments you can recover from HMRC | 92% if your total Class 1 NICs (both employee and employer contributions) are above £45,000 for the previous tax year103% if your total Class 1 NICs for the previous tax year are £45,000 or lower |
Maternity, paternity, adoption, sickness
The same weekly Statutory Sick Pay rate applies to all employees. However, the amount you must actually pay an employee for each day they’re off work due to illness (the daily rate) depends on the number of ‘qualifying days’ they work each week.
Statutory Sick Pay (SSP) 2014-15 | Rate of payment or recovery | Unrounded daily rates (for use with payroll software) |
---|---|---|
Standard weekly rate | £87.55 | N/A |
Daily rate – employees with one qualifying day in the week | £87.55 | £87.5500 |
Daily rate – employees with two qualifying days in the week | £43.78 | £43.7750 |
Daily rate – employees with three qualifying days in the week | £29.19 | £29.1833 |
Daily rate – employees with four qualifying days in the week | £21.89 | £21.8875 |
Daily rate – employees with five qualifying days in the week | £17.51 | £17.5100 |
Daily rate – employees with six qualifying days in the week | £14.60 | £14.5916 |
Daily rate – employees with seven qualifying days in the week | £12.51 | £12.5071 |
Proportion of your SSP payments you can recover from HMRC –
From 6 April 2014 the recovery of SSP was abolished. You cannot therefore recover any SSP for any tax years from 2014-2015.For a limited period you will still be able to recover SSP for previous tax years up to 5 April 2014.You can make this late recovery up to 5 April 2016. From 6 April 2016 you will not be able to recover SSP for any tax year.Where you are able to make recovery, you can recover amounts in excess of 13% of your total employee and employer Class 1 NICs liability for the month in question.
Maternity, paternity, adoption, sickness
Rate or threshold | Figures to use 2014-15 |
---|---|
Employee earnings threshold at which repayment of student loans begin | £16,910 per year £1,409.16 per month £325.19 per week |
Rate of student loan deductions | 9% |
NICs class | Rate 2014-15 |
---|---|
Class 1A NICs | 13.8% – for benefits provided in 2014-15 |
Find out more about expenses and benefits
The rates below apply from 1 March 2014.
Engine size | Petrol | LPG |
---|---|---|
1400cc or smaller | 14p | 9p |
1401cc to 2000cc | 16p | 11p |
Bigger than 2000cc | 24p | 16p |
Engine size | Diesel |
---|---|
1600cc or smaller | 12p |
1601cc to 2000cc | 14p |
Bigger than 2000cc | 17p |
Find out more about advisory fuel rates for company cars
Type of vehicle | Rate per business mile 2014-15 |
---|---|
Car | For tax purposes: 45p for the first 10,000 business miles in a tax year, then 25p for each subsequent mileFor NICs purposes: 45p for all business miles |
Motorcycle | 24p for both tax and NICs purposes and for all business miles |
Cycle | 20p for both tax and NICs purposes and for all business miles |
Mileage expenses for business travel in employee’s own vehicles
NICs class | Rate 2014-15 |
---|---|
Class 1B NICs | 13.8% – for benefits provided in 2014-15 |
Income Tax allowances | 2013-14 | 2014-15 |
---|---|---|
Personal Allowance (1) | N/A | N/A |
Personal Allowance for people born after 5 April 1948 (1) | £9,440 | £10,000 |
Income limit for Personal Allowance | £100,000 | £100,000 |
Personal Allowance for people aged 65-74 (1)(2) | N/A | N/A |
Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2) | £10,500 | £10,500 |
Personal Allowance for people aged 75 and over (1)(2) | N/A | N/A |
Personal Allowance for people before 6 April 1938 (1) (2) | £10,660 | £10,660 |
Maximum amount of Married Couple’s Allowance (born before 6th April 1935) (2) (3) | £7,915 | £8,165 |
Income limit for age-related allowances | N/A | N/A |
Income limit for the allowances for those born before 6 April 1948 | £26,100 | £27,000 |
Minimum amount of Married Couple’s Allowance | £3,040 | £3,140 |
Blind Person’s Allowance | £2,160 | £2,230 |
Income Tax allowances | 2011-12 | 2012-13 |
---|---|---|
Personal Allowance (1) | £7,475 | £8,105 |
Personal Allowance for people born after 5 April 1948 (1) | N/A | N/A |
Income limit for Personal Allowance | £100,000 | £100,000 |
Personal Allowance for people aged 65-74 (1)(2) | £9,940 | £10,500 |
Personal Allowance for people born between 6 April 1938 and 5 April 1948 (1) (2) | N/A | N/A |
Personal Allowance for people aged 75 and over (1)(2) | £10,090 | £10,660 |
Personal Allowance for people before 6 April 1938 (1) (2) | N/A | N/A |
Maximum amount of Married Couple’s Allowance (aged 75 and over) (2) (3) | £7,295 | £7,705 |
Income limit for age-related allowances | £24,000 | £25,400 |
Income limit for the allowances for those born before 6 April 1948 | N/A | N/A |
Minimum amount of Married Couple’s Allowance | £2,800 | £2,960 |
Blind Person’s Allowance | £1,980 | £2,100 |
Rate | 2013-14 | 2014-15 |
---|---|---|
Starting rate for savings: 10%* | £0 – £2,790 | £0 – £2,880 |
Basic rate: 20% | £0 – £32,010 | £0 – £31,865 |
Higher rate: 40% | £32,011 – £150,000 | £31,866 – £150,000 |
Additional rate: 50% | N/A | N/A |
Additional rate: 45% from 6 April 2013 | Over £150,000 | Over £150,000 |
Rate | 2011-12 | 2012-13 |
---|---|---|
Starting rate for savings: 10%* | £0 – £2,560 | £0 – £2,710 |
Basic rate: 20% | £0 – £35,000 | £0 – £34,370 |
Higher rate: 40% | £35,001 – £150,000 | £34,371 – £150,000 |
Additional rate: 50% | Over £150,000 | Over £150,000 |
Additional rate: 45% from 6 April 2013 | N/A | N/A |
* The 10 per cent starting rate applies to savings income only. If, after deducting your Personal Allowance from your total income liable to Income Tax, your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply. Non-savings income includes income from employment, profits from self-employment, pensions, income from property and taxable benefits.
The rates available for dividends are the 10 per cent ordinary rate, the 32.5 per cent dividend upper rate and the dividend additional rate of 42.5 per cent (the dividend additional rate is 37.5 per cent from 2013-14).
£ per week | 2011-12 | 2012-13 | 2013-14 | 2014 – 15 |
---|---|---|---|---|
Lower earnings limit, primary Class 1 | £102 | £107 | £109 | £111 |
Upper earnings limit, primary Class 1 | £817 | £817 | £797 | £805 |
Upper accrual point | £770 | £770 | £770 | £770 |
Primary threshold | £139 | £146 | £149 | £153 |
Secondary threshold | £136 | £144 | £148 | £153 |
Employees’ primary Class 1 rate between primary threshold and upper earnings limit | 12% | 12% | 12% | 12% |
Employees’ primary Class 1 rate above upper earnings limit | 2% | 2% | 2% | 2% |
Class 1A rate on employer provided benefits (1) | 13.8% | 13.8% | 13.8% | 13.8% |
Employees’ contracted-out rebate (for contracted-out salary related schemes only) | 1.6% | 1.4% | 1.4% | 1.4% |
Married women’s reduced rate between primary threshold and upper earnings limit | 5.85% | 5.85% | 5.85% | 5.85% |
Married women’s rate above upper earnings limit | 2% | 2% | 2% | 2% |
Employers’ secondary Class 1 rate above secondary threshold | 13.8% | 13.8% | 13.8% | 13.8% |
Employers’ contracted-out rebate, salary-related schemes | 3.7% | 3.4% | 3.4% | 3.4% |
Employers’ contracted-out rebate, money-purchase schemes | 1.4% | Abolished from 6 April 2012 | N/A | N/A |
Class 2 rate | £2.50 | £2.65 | £2.70 | £2.75 |
Class 2 small earnings exception | £5,315 per year | £5,595 per year | £5,725 per year | £5,885 per year |
Special Class 2 rate for share fishermen | £3.15 | £3.30 | £3.35 | £3.40 |
Special Class 2 rate for volunteer development workers | £5.10 | £5.35 | £5.45 | £5.55 |
Class 3 rate | £12.60 | £13.25 | £13.55 | £13.90 |
Class 4 lower profits limit | £7,225 per year | £7,605 per year | £7,755 per year | £7,956 per year |
Class 4 upper profits limit | £42,475 per year | £42,475 per year | £41,450 per year | £41,865 per year |
Class 4 rate between lower profits limit and upper profits limit | 9% | 9% | 9% | 9% |
Class 4 rate above upper profits limit | 2% | 2% | 2% | 2% |
Additional primary Class 1 percentage rate on deferred employments | 2% | 2% | 2% | 2% |
Additional Class 4 percentage rate where deferment has been granted | 2% | 2% | 2% | 2% |
Rate | 2011 | 2012 | 2013 | 2014 |
---|---|---|---|---|
Small profits rate* | 20%* | 20%* | 20%* | 20%* |
Small profits rate can be claimed by qualifying companies with profits at a rate not exceeding | £300,000 | £300,000 | £300,000 | £300,000 |
Marginal Relief Lower Limit | £300,000 | £300,000 | £300,000 | £300,000 |
Marginal Relief Upper Limit | £1,500,000 | £1,500,000 | £1,500,000 | £1,500,000 |
Standard fraction | 3/200 | 1/100 | 3/400 | 1/400 |
Main rate of Corporation Tax* | 26%* | 24%* | 23%* | 21%* |
Special rate for unit trusts and open-ended investment companies | 20% | 20% | 20%* | 20%* |
The main rate of Corporation Tax applies when profits (including ring fence profits) are at a rate exceeding £1,500,000, or where there is no claim to another rate, or where another rate does not apply.
From 1 April 2015 the small profits rate will be unified with the main rate, so there will be only one Corporation Tax rate for non-ring fence profits – set at 20%.
*For companies with ring fence profits (income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf) these rates differ. The small profits rate of tax on those profits is 19% and the ring fence fraction is 11/400 for financial years starting 1 April 2011, 2012, 2013 and 2014. The main rate is 30% for financial years starting on 1 April 2011, 2012, 2013 and 2014.
Indexation Allowance allows for the effects of inflation when calculating the chargeable gains of companies or organisations.
Each tax year nearly everyone who is liable to Capital Gains Tax gets an annual tax-free allowance – known as the ‘Annual Exempt Amount’. You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above this amount.
The annual tax-free allowance (known as the Annual Exempt Amount) allows you to make a certain amount of gains each year before you have to pay tax.
Nearly everyone who is liable to Capital Gains Tax gets this tax-free allowance.
There’s one Annual Exempt Amount for:
Most other trustees get a lower Annual Exempt Amount.
Customer group | 2012-13 | 2013-14 | 2014-15 |
---|---|---|---|
Individuals, personal representatives and trustees for disabled people | £10,600 | £10,900 | £11,000 |
Other trustees | £5,300 | £5,450 | £5,500 |
You can use your Annual Exempt Amount against the gains charged at the highest rates to minimise the tax you owe. See the section on ‘Rates for Capital Gains Tax’ below for an example.
If you’re acting as an executor or personal representative for a deceased person’s estate, you may get the full Annual Exempt Amount during the ‘administration period’. The administration period is usually the time it takes to settle the deceased person’s affairs and get a grant of probate (or confirmation in Scotland).
You’re entitled to the Annual Exempt Amount for the tax year in which the death occurred and the following two tax years. After that there’s no tax-free allowance against gains during the administration period.
Find out more about death, inheritance and Capital Gains Tax
If you’re acting as a trustee for a disabled person you use the higher Annual Exempt Amount above – and not the rate for ‘other trustees’.
A disabled person in this context is a person who has mental health problems or receives the middle or higher rate of Attendance Allowance or Disability Living Allowance.
Find out more about Capital Gains Tax and trusts
You won’t get the Annual Exempt Amount if you’re ‘non-domiciled’ in the UK and you’ve claimed the ‘remittance basis’ of taxation on your foreign income and gains.
You may be ‘non-domiciled’ in the UK, for example, if you were born in another country and intend to return there.
You may have claimed the ‘remittance basis’ if you have income and gains from abroad and have decided that it’s beneficial to be taxed on the foreign income and gains that you bring into the UK, rather than on all income and gains that arise.
Issues of domicile and tax on foreign gains are complicated. A lot depends on the facts of each case. You can find out more by following the link below. Or speak to your Tax Office about your specific circumstances.
RDR1 – Residence, domicile and the remittance basis
The following Capital Gains Tax rates apply:
If you’re not sure how to work out your taxable income, see the examples in the section below ‘Working out your Capital Gains Tax for 2013-14’.
Capital Gains Tax is charged at a flat rate of 18%.
The following Capital Gains Tax rates apply to gains after this date:
Find out more about Entrepreneurs’ Relief
Capital Gains Tax is charged at a flat rate of 18 per cent.
You need to work out your total taxable income before working out which Capital Gains Tax rate to use.
If you have gains which are charged at different rates, you need to decide how to use your Annual Exempt Amount. You use it against the gains charged at the highest rates to minimise the tax you owe.
Find out more about Income Tax bands and rates
Mr P’s total income, after deducting allowances and reliefs, is £20,000 and his capital gains, after reliefs, are £14,000.
The basic rate band is £32,010. Mr P has used £20,000 of this amount against his income – so has £12,010 remaining.
As his gains are only £14,000, he has enough of the basic rate band remaining to cover his gains, so they are all to be taxed at 18%. He now deducts his tax-free allowance of £10,900 and pays Capital Gains Tax at 18% on £3,100.
Mrs T’s total income, after deducting allowances and reliefs, is £26,000 and her capital gains, after reliefs, are £20,000. £5,000 of these gains qualify for Entrepreneurs’ Relief.
The basic rate band is £32,010. Mrs T has used £26,000 of this amount against her income – so has £6,010 remaining.
She has to allocate £5,000 against the gains that qualify for Entrepreneurs’ Relief, and pays tax on these at 10%.
She allocates the remaining £1,010 basic rate band against her other gains, so these are taxed at 18%.
Her tax-free allowance of £10,900 is allocated to her remaining £13,990 gains. This leaves £3,090 gains taxed at 28%.
Read more about Entrepreneurs’ Relief
The Inheritance Tax threshold (or ‘nil rate band’) is the amount up to which an estate will have no Inheritance Tax to pay.
If the estate – including any assets held in trust and gifts made within seven years of death – is more than the threshold, Inheritance Tax will be due at 40 per cent on the amount over the nil rate band. From 6 April 2012 people who leave 10 per cent or more of their net estate to charity can choose to pay a reduced rate of Inheritance Tax of 36 per cent.
This page shows the different thresholds in use for deaths going back to 1914.
From | To | Threshold/nil rate band |
---|---|---|
6 April 2009 | 5 April 2015 | £325,000 |
6 April 2008 | 5 April 2009 | £312,000 |
6 April 2007 | 5 April 2008 | £300,000 |
6 April 2006 | 5 April 2007 | £285,000 |
6 April 2005 | 5 April 2006 | £275,000 |
6 April 2004 | 5 April 2005 | £263,000 |
6 April 2003 | 5 April 2004 | £255,000 |
6 April 2002 | 5 April 2003 | £250,000 |
6 April 2001 | 5 April 2002 | £242,000 |
6 April 2000 | 5 April 2001 | £234,000 |
6 April 1999 | 5 April 2000 | £231,000 |
6 April 1998 | 5 April 1999 | £223,000 |
6 April 1997 | 5 April 1998 | £215,000 |
6 April 1996 | 5 April 1997 | £200,000 |
6 April 1995 | 5 April 1996 | £154,000 |
10 March 1992 | 5 April 1995 | £150,000 |
6 April 1991 | 9 March 1992 | £140,000 |
6 April 1990 | 5 April 1991 | £128,000 |
6 April 1989 | 5 April 1990 | £118,000 |
15 March 1988 | 5 April 1989 | £110,000 |
17 March 1987 | 14 March 1988 | £90,000 |
18 March 1986 | 16 March 1987 | £71,000 |
From | To | Threshold/nil rate band |
---|---|---|
6 April 1985 | 17 March 1986 | £67,000 |
13 March 1984 | 5 April 1985 | £64,000 |
15 March 1983 | 12 March 1984 | £60,000 |
9 March 1982 | 14 March 1983 | £55,000 |
26 March 1980 | 8 March 1982 | £50,000 |
27 October 1977 | 25 March 1980 | £25,000 |
13 March 1975 | 26 October 1977 | £15,000 |
From | To | Threshold/nil rate band |
---|---|---|
22 March 1972 | 12 March 1975 | £15,000 |
31 March 1971 | 21 March 1972 | £12,500 |
16 April 1969 | 30 March 1971 | £10,000 |
4 April 1963 | 15 April 1969 | £5,000 |
9 April 1962 | 3 April 1963 | £4,000 |
30 July 1954 | 8 April 1962 | £3,000 |
10 April 1946 | 29 July 1954 | £2,000 |
16 August 1914 | 9 April 1946 | £100 |
From | To | Threshold/nil rate band |
---|---|---|
22 March 1972 | 12 March 1975 | £15,000 |
5 May 1971 | 21 March 1972 | £12,500 |
4 June 1969 | 4 May 1971 | £10,000 |
22 May 1963 | 3 June 1969 | £5,000 |
4 July 1962 | 21 May 1963 | £4,000 |
1 November 1954 | 3 July 1962 | £3,000 |
29 August 1946 | 31 October 1954 | £2,000 |
16 August 1914 | 28 August 1946 | £100 |
Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.
The tax rate and payment threshold can vary according to whether the property is residential or non-residential, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction.
This guide provides an overview of the SDLT rates and provides links to related guidance where necessary.
The table below applies for all freehold residential purchases and transfers and the premium paid for a new lease or the assignment of an existing lease. (If the property will be used for both residential and non-residential purposes the rates differ – please see the section ‘SDLT for non-residential or mixed use property’).
If the transaction involves the purchase of a new lease with a substantial rent there may be an additional SDLT charge to that shown below, based on the rent. See the next section and further table ‘SDLT on rent for new leasehold properties (residential)’ for more detail.
Purchase price/lease premium or transfer value | SDLT rate |
---|---|
Up to £125,000 | Zero |
Over £125,000 to £250,000 | 1% |
Over £250,000 to £500,000 | 3% |
Over £500,000 to £1 million | 4% |
Over £1 million to £2 million | 5% |
Over £2 million | 7% |
If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid. For example, a house bought for £130,000 is charged at 1%, so £1,300 must be paid in SDLT. A house bought for £350,000 is charged at 3%, so SDLT of £10,500 is payable.
From 20 March 2014 SDLT is charged at 15% on interests in residential dwellings costing more than £500,000 purchased by certain non-natural persons. If you exchanged contracts on or after 21 March 2012 but before 20 March 2014 the earlier £2 million threshold for this charge will apply, subject to transitional rules.
“Non-natural persons” include companies, partnerships including a company and collective investment schemes. There are exclusions for trustees of a settlement, property rental businesses, property developers and traders, properties made available to the public, financial institutions acquiring dwellings in the course of lending, dwellings occupied by employees and farmhouses.
Annual Tax on Enveloped Dwellings is a tax payable by companies on high value residential property (a dwelling) and came into effect on 1 April 2013 and is payable each year.
Information about Annual Tax on Enveloped Dwellings
When a new residential lease has a substantial annual rent, SDLT is payable on both of the following, which are calculated separately and then added together:
The NPV is based on the value of the total rent over the life of the lease and can be worked out using HMRC’s online calculator (link below).
Net present value of rent – residential | SDLT rate |
---|---|
£0 – £125,000 | Zero |
Over £125,000 | 1% of the value that exceeds £125,000 |
Read more about calculating SDLT for leasehold purchases
Go to the SDLT lease calculator
If six or more properties form part of a single transaction the rules, rates and thresholds for non-residential properties apply. The amounts paid for all the properties in the transaction must be added together in order to establish the rate of tax payable.
Non-residential property includes:
A mixed use property is one that incorporates both residential and non-residential elements.
The table below applies for freehold and leasehold non-residential and mixed use purchases and transfers.
If the transaction involves the purchase of a new lease with a substantial annual rent, there may be additional SDLT charge to that shown below, based on the rent. See the later section and table for more detail.
Purchase price/lease premium or transfer value (non-residential or mixed use) | SDLT rate |
---|---|
Up to £150,000 – annual rent is under £1,000 | Zero |
Up to £150,000 – annual rent is £1,000 or more | 1% |
Over £150,000 to £250,000 | 1% |
Over £250,000 to £500,000 | 3% |
Over £500,000 | 4% |
Note that for the above purpose the annual rent is the highest annual rent known to be payable in any year of the lease, not the net present value used to determine any tax payable on the rent as described below.
When a new non-residential or mixed use lease has a substantial annual rent, SDLT is payable on both of the following which are calculated separately and then added together:
Net present value of rent – non-residential | SDLT rate |
---|---|
£0 – £150,000 | Zero |
Over £150,000 | 1% of the value that exceeds £150,000 |
Read more about calculating SDLT for leasehold purchases
Go to the SDLT lease calculator
Pension Schemes rates for the tax years 2006 to 2007 to 2009 to 2010 are available on the National Archives website.
<ahref=”http://webarchive.nationalarchives.gov.uk/20090909205015/http://hmrc.gov.uk/rates/pensions.htm”>Find Pension Schemes rates for previous tax years on the National Archives website
Tax Year | Amount (£) |
---|---|
2010-11 | £1,800,000 |
2011-12 | £1,800,000 |
2012-13 | £1,500,000 |
2013-14 | £1,500,000 |
2014-15 | £1,250,000 |
There is no limit on the amount that an individual can contribute to a registered pension scheme. If you are a UK resident aged under 75 you may receive tax relief on your contributions to a registered pension scheme. Tax relief is limited to relief on contributions up to the higher of
Any amount of contributions paid over the annual allowance will be liable to the annual allowance charge.
Tax Year | Amount (£) |
---|---|
2010-11 | £255,000 |
2011-12 | £50,000 |
2012-13 | £50,000 |
2013-14 | £50,000 |
2014-15 | £40,000 |
There are a number of special tax charges that apply to special payments made from registered pension schemes. These are listed below. The normal Income Tax rates apply to ordinary pensions payments made from pension schemes.
Charges | Rates |
---|---|
Lifetime allowance charge | 55% – if the amount over the lifetime allowance is paid as a lump sum 25% – if the amount over the lifetime allowance is not taken as a lump sum |
Annual allowance charge | Years to 2010 to 2011 40% |
Annual allowance charge | From 2011 to 2012 marginal rate of Income Tax |
Unauthorised payments charge | 40% |
Unauthorised payments surcharge | 15% |
Short service refund lump sum charge | 20% on first £20,000, 50% on amount over £20,000 |
Special lump sum death benefits charge for deaths before 6 April 2011 | 35% |
Special lump sum death benefits charge for deaths on or after 6 April 2011 | 55% |
Authorised surplus payments charge | 35% |
Serious ill-health lump sum charge | 55% |
Scheme sanction charge | 15% – 40% |
From 2002-03 to 2010-11 | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
---|---|---|
Cars and vans | 40p | 25p |
Motor cycles | 24p | 24p |
Bicycles | 20p | 20p |
From 2011-12 | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
---|---|---|
Cars and vans | 45p | 25p |
Motor cycles | 24p | 24p |
Bicycles | 20p | 20p |
5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all.
The charge is based on the price of the car for tax purposes (normally the list price) and accessories multiplied by an appropriate percentage based on the level of CO2 emissions and the fuel the car uses. There is a ready-reckoner of appropriate percentages for petrol-powered cars and summaries of adjustments to those percentages for years from 2002-03 to 2005-06and for years from 2006-07 onwards.
The rules on which the charge is based were changed from 2005-06. The charges are:
Type | years to 2006-07 | years from 2007-08 |
---|---|---|
van less than 4 years old at the end of the tax year | £500 | £3,000 |
all other vans | £350 | £3,000 |
Cars: to calculate the benefit charge on free or subsidised fuel for private use, the appropriate percentage used in calculating car benefit is applied to a set figure known as the car fuel benefit multiplier.
Year | Amount |
---|---|
2003-04 to 2007-08 | £14,400 |
2008-09 to 2009-10 | £16,900 |
2010-11 | £18,000 |
2011-12 | £18,800 |
2012-13 onwards | £20,200 |
2013-14 onwards | £21,100 |
Vans: the fuel charge began in 2005-06 but only has practical effect from 2007-08. The van fuel rates are:
Year | Amount |
---|---|
2007-08 to 2009-10 | £500 |
2010-11 to 2012-13 | £550 |
2013-14 onwards | £564 |