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Tax Tables

Any reference to legislation and tax is based on Abacus Wealth Planning Ltd's understanding of United Kingdom law and HM Revenue & Customs practice at the date of production. These may be subject to change in the future. Tax rates and reliefs may be altered. The value of tax reliefs to the investor depends on their financial circumstances. No guarantees are given regarding the effectiveness of any arrangements entered into on the basis of these comments.

Income tax rates for individuals
2014/152015/16
Bands of taxable income%Bands of taxable income%
(£1 - £2,880)*10(£1 - £5,000)*10
£1 – £31,86520£1 – £31,78520
£31,866 - £150,00040£31,786 - £150,00040
Over £150,000 45Over £150,00045

* There is a starting rate of tax of 10% which applies to savings income only. If an individual's taxable non-savings income exceeds £2,880 in 2014/15 or £5,000 in 2015/156 then the 10% starting rate for savings will not apply. Dividend income is taxed at 10% (income up to the basic rate), 32.5% (higher rate). The additional rate for dividend income is 37.5%.
Income tax rates for trusts
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Interest in Possession*Discretionary
2010 - 2014%%
Savings income20Savings income2010-13 = 50%
2013-15 = 45%
Rental income20Rental income2010-13 = 50% 
2013-15 = 45%
Dividend income10Dividend income2010-13 = 42.5%
2013-15 = 37.5%

* The first £1,000 of taxable trust income is charged at 20%, or 10% for dividend income. The £1,000 band is shared between all trusts created by the same settler subject to a minimum of £200 per trust.
Income tax allowances and reliefs
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Income Tax allowances and reliefs
Personal allowance2013/142014/15
Born after 5 April 19484*£9,440£10,000
Born after 5 April 1938 but before 6 April 1948** £10,500£10,500
Born before 6 April 1938**£10,660£10,660
 
Married couple's & civil partners allowance (born before 06/04/1935**), relief given at 10%£7,915£8,165
Minimum amount of married couple's allowance£3,040£3,140
 
*Income limit for personal allowance
Allowance reduced by £1 for every £2 of “adjusted net income” above £100,000 with no personal allowance after £118,800 (2013/14) or £120,000 (2014/15)
£100,000£100,000
 
**Age related reliefs reduced by £1 for every £2 of “adjusted net income” over:
but never below the basic personal allowance unless “adjusted net income“above £100,000 and never below the basic married couples allowance.
£26,100£27,000
Enterprise Investment Scheme (EIS)


£1,000,000 (30%)

£1,000,000 (30%)
 
Seed Enterprise Investment Scheme (50%)
Venture Capital Trust (VCT) at 30%
£100,000
£200,000
£100,000
£200,000
Capital gains tax rates for individuals
2013/142014/15
GainsRate %GainsRate %
Up to £10,900 NilUp to £11,000 Nil
Over £10,90018% & 28%*Over £11,00018% & 28%*

* A rate of 28% is payable by individuals with capital gains in excess of their annual exemption which when added to their income exceed the income tax higher rate threshold (£32,010 for 2013/14 or £31,865 for 2014/15). Where the income and capital gains do not exceed the threshold, the rate of 18% will apply and gains straddling the threshold will pay 18% on the amount of gain below the threshold and 28% above it.

Entrepreneurs' relief was introduced from 06.04.2008 and is available for qualifying business disposals from this date.
Capital gains tax rates for trusts
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2013/142014/15
GainsRate %GainsRate %
Up to £5,450*NilUp to £5,500*Nil
Over £5,45028%**Over £5,50028

* The annual exemption is shared between all trusts created by the same settlor, subject to a minimum per trust of £1,090 (2013/14) or £1,100 (2014/15).
** Gains arising on bare trusts are not taxable upon the trustees but instead are taxed upon the beneficiary and the new rules for individuals will apply.

Entrepreneurs' relief was introduced from 06.04.2008 and is available for qualifying business disposals from this date.
Registered pension schemes tax charges
Lifetime allowanceAnnual allowance
2013/14£1.5 million2013/14£50,000
2014/15£1.25 million2014/15£40,000

A higher lifetime allowance is available to those who have either fixed protection (£1.8 million) or a lifetime allowance enhancement factor (for example, those with primary protection).

Lifetime allowance charge

  • 55% of excess over lifetime allowance if taken as a lump sum.
  • 25% of excess over lifetime allowance if taken in the form of income, which is subsequently taxed under PAYE.
  • Contributions
  • Member - unlimited. Tax relief limited to the higher of £3,600 or 100% of relevant UK earnings.
  • Employer - unlimited. Normally tax relief is claimable, although the employer's local inspector of taxes decides to what extent it will be given.
  • Annual allowance charge
  • Unused allowance in respect of the previous three tax years can be carried forward in some circumstances. 
  • A variable tax charge of up to 45% for 2013/14 onwards on the amount of total pension input in excess of the annual allowance.
  • Unauthorised payments

  • Charge: 40% income tax charge levied on the recipient of the payment.
  • Scheme sanction charge: income tax charge on the scheme, normally 15% of the unauthorised payment.
  • Surcharge: 15% income tax charge payable in addition to the unauthorised payments charge, when the value of unauthorised payment is 25% or more of the fund.
  • Minimum pension age


    55 on or after 06.04.2010

    Members with ‘protected retirement ages' - lifetime allowance is reduced by 2.5% for each year below normal pension age, except for members of some public service schemes, including the Police and Armed Forces. No reduction for ill-health early retirement.

    Triviality
  • The triviality limit is set at £30,000 even though the lifetime allowance has reduced to £1.25 million. All pensions including those in payment to be taken into account. 
  • Up-to three pension pots worth less than £10,000 individually can, in some circumstances, be paid as lump sums, regardless of the value of other pension benefits.
  • Uncrystallised trivial pensions will have 75% of fund subject to tax under PAYE
  • Trivial pensions already in payment can be commuted (taxed in full under PAYE)
  • National insurance rates & contributions
    Class 1 (Employment) 06.04.2014WeeklyYearly
    Lower earnings limit (LEL)£111£5,772
    Upper earnings limit (UEL)£805£41,865
    Upper Accruals Point (UAP)£770£40,040
    UAP is the threshold used in the calculation of State Second Pension and contracted out rebates. It replaced the UEL from 06.04.2009
    Primary earnings threshold (employees)£153£7,956
    Secondary earnings threshold (employers)£153£7,956
    Low Earnings Threshold £15,100
    This is used in the calculation of the State Second Pension. Individuals who earn at least the LEL are deemed to earn the low earnings threshold for State Second Pension purposes
    Employee contribution rates 06.04.14
    Contracted in (on earnings between primary threshold and UEL)12%
    Reduced rate for married women and widows5.85%
    Contracted out (on earnings between primary threshold and UAP)10.6%
    Contracted out (on earnings between UAP and UEL)12%
    If contracted out via an occupational money purchase scheme, the contracted in rate will be deducted from salary, with the difference between the contracted in and contracted out rate being rebated into the pension.
    Earnings above UEL (including that for married women and widows)2%
    Employer contribution rates 06.04.12 (on earnings above secondary earnings threshold)
    Contracted in13.8%
    Contracted out (final salary)10.4%
    Additional age-related rebates of 0% - 4.4% of middle band earnings apply to contracted out money purchase schemes. Employer contributions on earnings above the upper earnings limit are assessed at the contracted in rate.
    Class 2 (Self-employed) 06.04.2014
    Profits between £5,885 and £7,956£2.75 per week
    Class 3 (Voluntary) from 06.04.2014£13.55 per week
    Class 4 (Self-employed, additional levy) 06.04.2014 
    Profits between £7,955 and £41,865 9%
    Profits over £41,8652%
    Inheritance tax rates
    Death rateLifetime rateChargeable transfers 2013/14Chargeable transfers 2014/15
    NilNil£0 - £325,000£0 - £325,000
    40%*20%Over £325,000Over £325,000
    Rates of charge on certain gifts within seven years of death
    Years between gift and death% of death rate charge
    0 - 3100
    3 – 480
    4 – 560
    5 – 640
    6 - 720

    The government has announced that the nil rate band will be frozen at £325,000 until 5 April 2018.

    *Reduced to 36% for deaths on or after 6 April 2012 where at least 10% of the net estate is left to charity.

    Exemptions
    The following are the main exemptions which are available in certain circumstances:
  • Gifts to spouses/civil partners (limited to £55,000 if transferor is UK domiciled and spouse* is non-UK domiciled).
  • Annual allowance of £3,000 per tax year.
  • Small gifts up to £250 per tax year to individuals.
  • Normal expenditure out of income.
  • Gifts in consideration of marriage/civil partnership (£5,000 by a parent, £2,500 by a party to the marriage/civil partnership, or remoter relative, or £1,000 by any other person).
  • Gifts to UK charities.
    Not all the above exemptions may be available at the same time.
  • Corporation tax rates
    RateFinancial Year 2013/14Financial Year 2014/15
    Small companies' rate:
    £1 - £300,000
    (This applies to the first £300,000 of profits whether retained or distributed as dividends)
    20%20%
     
    Marginal rate:
    £300,001 - £1,500,000
    (This is an effective rate that may only be used if the company does not receive UK dividend payments from other companies)
    23.75%21.25%
    Marginal relief factor3/4001/400
     
    Main rate: £1,500,001 and over23%21%
    The main rate of corporation tax is due to reduce to 20% in the financial year beginning 1 April 2015.
    Important tax dates
    Income Tax:

    Payments on account

    31 January during the tax year, and 31 July following the end of the tax year. Normally each of these will be *half of the tax due for the previous tax year.

    * If you know that your income for the current year will be lower than the previous year's income, you can ask HMRC to reduce your payments on account. However, if HMRC later find that extra tax was due, you will have to pay interest on it. You may also have to pay a penalty if you have asked HMRC to reduce the payments without taking proper care.
     
    Balancing Payment31 January following the end of the tax year.
     
    Employee P11d6 July after the end of the tax year
     
    Tax returns

    31 October after the end of the tax year for paper tax returns

    If the inidividual receives the tax return after 31 July, the deadline is three months following the date of issue of the notice

    30 December after the end of the tax year for an online if HMRC to collect tax through tax code (where possible) if the amount of tax owed is less than £2,000.

    31 January after the end of the tax year for online returns

     
    Capital Gains Tax:
    31 January following the end of the tax year in which the gain has arisen.
     
    Corporation Tax:
    Stand alone companies with taxable profit up to £1.5m - nine months after the end of the accounting period (AP).

    Companies with taxable profits over £1.5m# - will pay Corporation Tax in four equal quarterly instalments starting between the 6th and 7th month of the AP and based on estimated liabilities.

    #Excludes companies whose profits in the immediately preceding period were less than £1.5m and in the current period less than £10m.
     
    Inheritance Tax:
    DeathNormally 6 months after the end of the month in which death occurred.
    Lifetime transferNormally 12 months after the end of the month in which the transfer is made.
    Individual Savings Accounts (ISAs) limits
    Maximum contributions 2014/15:
    Cash ISAup to £ 5,940
    Stocks and Shares ISA
    Junior ISA
    up to £11,880
    up to £3,840

  • Maximum overall subscription is £11,880 to both ISAs.
  • Transfers from a cash ISA to a stocks and shares ISA are now allowed. It is not possible to transfer from a stocks and shares ISA to a cash ISA
  • FROM 1st July 2014 - Maximum ISA Limit increases to £15,000 with any combination of Cash or Stocks & Shares up-to the overall £15,000 limit. All ISA's will become NISAs (New Individual Savings Accounts)

  • Stamp duty land tax (property purchase)
    ResidentialNon-residential06.04.12
    Value of ConsiderationValue of ConsiderationRate
    Up to £125,000up to £150,0000%
    £125,001 - £250,000£150,001 - £250,0001%
    £250,001 - £500,000£250,001 - £500,0003%
    £500,001 - £1,000,000
    Over £1 million to £2 million
    Over £2 million from 22 March 2012
    Over £2 million (purchased by certain persons including corporate bodies) from 21 March 2012
    Over £500,000

     

    4%
    5%
    7%
    15%

    A nil per cent band applies to residential property transactions in designated disadvantaged areas up to £150,000.
    State Benefits 2013 - 2015
     2013/14 per week
    Retirement pension
    Single person£110.15
    Married couple/civil partners£176.15
     
    State Pension Credit (Single person)
    Guaranteed element£145.40
    Savings elementup to £18.06
     
    State Pension Credit(Married couple/civil partners)
    Guaranteed element£222.05
    Savings elementup to £22.89
     
     
    Incapacity benefit (only available for claims made before 27.10.2008)
    Short-term (under pension age)
    First 28 weeks£76.45
    29 to 52 weeks£90.50
    Short-term (over pension age)
    First 28 weeks£97.25
    29 to 52 weeks£101.35
    Long-term (over 52 weeks)£101.35
     
     
     
     
     
    Bereavement benefits
    Bereavement payment* (lump sum)£2,000£2,000
    Widowed parent's allowance£105.95£108.30
    Bereavement allowance (standard rate) £105.95£108.30
     
    Child benefit*
    First child£20.30£20.30
    Each subsequent child£13.40£13.40
    *From 7 January 2013 a charge applies where a claimant or their spouse/civil partner earns over £50,000. The charge is 1% of the benefit received for each £100 that the earnings of the higher earner exceed £50,000.

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