Tax Rate Tables

Tax credits, Child Benefit and Guardian’s Allowance

Working Tax Credit rates

The maximum Working Tax Credit rates are shown below.

Working Tax Credit – £ per year
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

Childcare element of Working Tax Credit

The maximum childcare costs you can claim for, and percentage you can get help with are shown below.

Childcare element of Working Tax Credit
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%

Child Tax Credit rates

The maximum Child Tax Credit rates are shown below.

Child Tax Credit – £ per year
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

Tax credits income thresholds

The tax credits income thresholds and withdrawal rates are shown below.

Income thresholds and withdrawal rates – £ per year (unless stated)
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

Child Benefit rates

The Child Benefit rates are shown below.

Child Benefit – £ per week
Rates April 2013 April 2014
Eldest/Only Child £20.30 £20.50
Other Children £13.40 £13.55

Guardian’s Allowance rates

The Guardian’s Allowance rates are shown below.

Guardian’s Allowance – £ per week
Rates April 2013 April 2014
Guardian’s Allowance £15.90 £16.35

Rates and thresholds for employers 2014-15

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 and Class 1 NICs

Tax thresholds, rates and codes

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

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

Class 1 NICs: rates for employee (primary) contributions

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

Class 1 NICs: rates for employer (secondary) contributions

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

National minimum wage

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

The national minimum wage

Statutory maternity, paternity and adoption pay

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

Statutory sick pay

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

Student loan recovery

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%

Employee has a student loan

Class 1A NICs: expenses and benefits

NICs class Rate 2014-15
Class 1A NICs 13.8% – for benefits provided in 2014-15

Find out more about expenses and benefits

Company cars: advisory fuel rates

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

Employee vehicles: mileage payments for business travel

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

Class 1B NICs: PAYE Settlement Agreements

NICs class Rate 2014-15
Class 1B NICs 13.8% – for benefits provided in 2014-15

PSAs

Income Tax rates and allowances

Income Tax allowances table 2013 – 14 and 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 for 2011 – 12 and 2012 – 13
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
  1. The Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of age or date of birth.
  2. These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. This applies until the level of the personal allowance for those aged under 65, or from 2013-14, for those born after 5 April 1948, is reached. For married couples allowance this applies until it reaches the minimum amount
  3. Tax relief for the Married Couple’s Allowance is given at the rate of 10 per cent.

Income Tax rates and taxable bands

Income Tax rates and taxable bands 2013 – 14 and 2014 – 15
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
Income Tax rates and taxable bands 2011 – 12 and 2012 – 13
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).

National Insurance Contributions

National Insurance contributions – rates and allowances
£ 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%
  1. Class 1A NICs are payable in July and are calculated on the value of taxable benefits provided in the previous tax year, using the secondary Class 1 percentage rate appropriate to that tax year.

Corporation Tax rates

Rates for financial years starting on 1 April
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%*

Main rate of Corporation Tax

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%.

Ring fence companies

*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.

Corporation Tax on chargeable gains

Indexation Allowance allows for the effects of inflation when calculating the chargeable gains of companies or organisations.

Capital Gains Tax rates and annual tax-free allowances

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.

Tax-free allowances for Capital Gains Tax

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.

Annual Exempt Amounts
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.

Executors and personal representatives

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

Trustees for disabled people

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

People who are ‘non-domiciled’ in the UK

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

Telephone or write to HMRC

Rates for Capital Gains Tax

2011-12, 2012-13 and 2013-14

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’.

2010-11

For gains on or before 22 June 2010

Capital Gains Tax is charged at a flat rate of 18%.

For capital gains made from 23 June 2010 to 5 April 2011

The following Capital Gains Tax rates apply to gains after this date:

Find out more about Entrepreneurs’ Relief

2009-10 and 2008-09

Capital Gains Tax is charged at a flat rate of 18 per cent.

Working out your Capital Gains Tax for 2013-14

You need to work out your total taxable income before working out which Capital Gains Tax rate to use.

  1. First work out your taxable income by deducting any tax-free allowances and reliefs that you are entitled to.
  2. Next see how much of your basic rate band is already being used against your taxable income. The basic rate band for 2013-14 is £32,010.
  3. Allocate any remaining basic rate band first against gains that qualify for Entrepreneurs’ Relief – these are charged at 10%.
  4. Next allocate any remaining basic rate band against your other gains, these are charged at 18%.
  5. Any remaining gains above the basic rate band are charged at 28%.

Using your Annual Exempt Amount

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

Example one – a simple example

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.

Example two – Entrepreneurs’ Relief

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

Inheritance Tax thresholds

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.

Inheritance Tax thresholds – present day back to 18 March 1986
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
‘Capital Transfer Tax’ (Inheritance Tax thresholds) – 17 March 1986 back to 13 March 1975 for England, Wales, Scotland and Northern Ireland
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
‘Estate Duty’ (Inheritance Tax thresholds) – 12 March 1975 back to 16 August 1914 for England, Wales and Scotland
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
‘Estate Duty’ (Inheritance Tax thresholds) – 12 March 1975 back to 16 August 1914 for Northern Ireland only
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 rates and thresholds

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.

SDLT rates for residential property

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’).

New leases

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.

Residential land or property SDLT rates and thresholds

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.

Higher rate for corporate bodies

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

SDLT on rent – new residential leasehold purchase

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).

SDLT on rent for new leasehold properties (residential)

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 residential properties form part of a single transaction

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.

SDLT rates for non-residential or mixed use properties

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.

Non-residential land or property rates and thresholds

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.

SDLT on rent – new non-residential or mixed use leasehold purchase

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:

SDLT on rent for new leasehold properties (non-residential or mixed use)

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 scheme rates

Pension Schemes rates before 6 April 2010

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

Pension Schemes rates after 6 April 2010

Standard Lifetime Allowance
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

Member contributions

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.

Annual Allowance
Tax Year Amount (£)
2010-11 £255,000
2011-12 £50,000
2012-13 £50,000
2013-14 £50,000
2014-15 £40,000

Tax charges on payments from registered pension schemes

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%

Travel – mileage and fuel allowances

Approved mileage rates
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
Approved mileage rates
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

Passenger payments – cars and vans

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.

Company Cars

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.

Company Vans

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

Fuel charges – company cars and vans

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.

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
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